Concall AI

Beta Drugs Ltd — Q4 FY26 earnings call

Call held 15 May 2026

Management summary

Beta Drugs Limited reported a robust Q4 FY26 with net revenue growing to INR396 crores and EBITDA margins expanding to 22.57%. Strong performance in branded sales and the Derma segment, which turned EBITDA positive, were key highlights. The company also completed the strategic acquisition of Nivian Lifesciences. However, export sales and CDMO growth were impacted by tender delays and supply issues with Platins, respectively.

Highlights

Net revenue grew from INR368 crores to INR396 crores, representing a 7.6% YoY increase.
EBITDA grew from INR76.97 crores to INR86.85 crores, with EBITDA margins expanding from 21.1% to 22.57%.
Branded sales showed strong growth of 20%, increasing from INR103 crores to INR123 crores.
The Derma business achieved EBITDA positive status and grew significantly by almost 35% from INR12.3 crores to INR16.58 crores.
The acquisition of a 66.1% stake in Nivian Lifesciences for INR69.4 crores is expected to consolidate full-year revenue for FY27 and provide significant synergies.

Concerns

Net profit margin declined from 11.71% to 10.78%, although management noted it would be above 12.5% excluding extraordinary expenses.
Export sales declined by 11% from INR79 crores to INR71 crores, primarily due to tender delays.
CDMO sales grew only 1% from INR148 crores to INR149 crores, impacted by the non-supply of Platins in the last half year.

Key financials

01 Net Revenue ₹396 Cr +7.6%YoY
02 Gross Margin 55.5% +5.3%YoY
03 EBITDA ₹86.85 Cr +12.8%YoY
04 EBITDA Margin 22.6% +6.9%YoY
05 Operating Margin 18.1% +2.6%YoY
06 Net Profit Margin 10.8% -7.9%YoY

What they filed

Q1 FY27: revenue up 26.0%, net profit up 33.3% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	180	88	94	100	103 −43%	87 −1%	94 +0%	126 +26%
Expenses	141	70	76	81	82	70	76	98
EBITDA	39	18	17	20	21 −46%	17 −6%	18 +6%	27 +35%
Margin	22%	21%	18%	20%	21%	19%	19%	22%
Other income	2	-1	2	3	3	2	3	2
Interest	2	2	3	3	4	4	4	3
Depreciation	6	3	4	4	4	4	5	4
Profit before tax	33	12	12	16	16 −52%	10 −17%	12 +0%	22 +38%
Tax rate	25%	25%	26%	25%	26%	19%	24%	25%
Net profit	24	9	9	12	12 −50%	9 +0%	9 +0%	16 +33%
EPS	24.20	8.86	8.95	11.59	12.11	8.40	8.93	14.25

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue

₹429.58 Cr Total

CDMO Sales ₹149 Cr 34.7%
Branded Sales ₹123 Cr 28.6%
Export Sales ₹71 Cr 16.5%
Nivian Lifesciences (FY26) ₹45 Cr 10.5%
API Business ₹25 Cr 5.8%
Derma Sales ₹16.58 Cr 3.9%

Capital allocation

high confidence

Capex ₹25 Cr
- Intermediate plant acquisition and investment ₹24 Cr
So capex plan if we see totally for next 2 years, we don't see any major capex happening apart from what we have done for the intermediate plant where we have already bought a existing plant for INR9 crores and we have invested close to around INR15 crores to INR17 crores for the intermediate plant. Otherwise total capex we see that is not more than INR25 crores in next 2 years.
Debt Debt disclosed
- Conversion Compulsorily Convertible Debentures (CCD) to be converted in May 2026 at INR1643 per share (INR10 face value, INR1633 security premium).
So FY27, see, we have to convert these debentures in May itself, in May 2026 itself. So those whatever financial expenses you are seeing, that will only be coming for 2 months this year. After that there will be normal bank interest which is normally 7.5% on CC and close to 8% on term loans. So the big financial expense won't come this year, only for 2 months it will come. In FY27, if I talk about working capital facilities putting all the companies together, that should be close to INR7 crores to INR8 crores utilized. I'm talking about utilized, or maximum INR10 crores. And the term loans will be close to INR20 crores.
M&A Nivian Lifesciences Acquisition · Closed · Consideration ₹[object Object] (cash)

Enhance company's presence in IVF therapy, leverage synergies for gross margin improvement, manufacturing infrastructure, and corporate hospital access.
Will consolidate full year revenue for FY27; expected to grow 30% for next 3-4 years.

Beta has acquired 66.1% stake with a total consideration of INR69.4 crores at a valuation of INR105 crores. The transaction is closed in April 26 and will be able to consolidate full year revenue of Nivian Lifesciences for FY27.

Guidance & targets

Revenue

Overall Revenue Growth Revenue · annually · High confidence 20-25%

So outlook will be same. We will continue to grow at 20% to 25% annually.

— Rahul Batra
Vision 2030 Sales Target Revenue · next 4 years · High confidence INR900 crores

We have set a vision to achieve INR900-odd crores sales in next four years.

— Rahul Batra

Margin

EBITDA Margin Margin · future · Medium confidence >23-24%

So once the export and the branded sales will improve, the EBITDA margin will generally -- will definitely come up above 23%, 24%.

— Rahul Batra

Export

Export Sales Growth Export · FY27 · High confidence >50%

We are on track to have a growth of more than 50% in exports in FY27.

— Rahul Batra
Export Contribution to Total Revenue Export · by FY30 · High confidence 30%

The export as per our forecast for next three-four year will contribute 30% of the total revenue by FY30.

— Rahul Batra
Export Sales Export · Q1 FY27 · High confidence INR20-22 crores

Previously INR32.26 crores (Q1 last year) → INR20-22 crores

Yes, yes. So on the export side, this quarter we will be closing more than INR20 crores. INR20 crores to INR22 crores.

— Ashutosh Shukla
Export Growth Export · H1 FY27 · High confidence 30%

We are expecting around 30% growth in H1.

— Rahul Batra
Export Sales Export · FY27 · High confidence INR105-110 crores

From INR71 crores (FY26) today

Yes, that is on track and we are expecting 50% growth, at least 50% growth this year from exports. So we did 71, we are expecting to close between INR107 this year INR105 and INR110 this year.

— Rahul Batra

Branded Oncology

Branded Oncology Business Growth Branded Oncology · next 3-4 years · High confidence 20-25%

Beta will continue to grow its own branded business by 20% to 25% in the coming three to four years.

— Rahul Batra

CDMO

CDMO Annual Growth CDMO · next 3-4 years · High confidence 5-6%

This move of company will make more towards the growth of this vertical and will continue to make it 5% to 6% annual growth for next three-four years.

— Rahul Batra

API

Intermediate Plant Commercialization API · this year · High confidence Commercialized

The development has already started and we will make it commercialized by this year.

— Rahul Batra

Cosmetology

Cosmetology Annual Growth Cosmetology · next 3-4 years · High confidence 30-40%

The next three to four year cosmetic division will continue to grow at 30% to 40% annually.

— Rahul Batra
PCPM (Per Chemist Per Month) Cosmetology · this year · High confidence INR2.3-2.4 lakhs

Our current covered market is between INR3500 to INR4000 crores. We have achieved a PCPM of INR1.85 lakhs with 69 TMs on board and will grow up to INR2.3 to INR2.4 lakhs PCPM this year.

— Rahul Batra

Nivian (IVF)

Nivian Annual Growth Nivian (IVF) · next 3-4 years · High confidence 30%

Nivian will continue to grow at 30% for next three to four years and can be a brilliant branded business in all the verticals.

— Rahul Batra

Derma

Derma Sales Derma · next 3 years · High confidence INR50 crores

Yes, so next three years we have a vision to cross INR50 crores in Derma which includes majorly like the major thrust will be into cosmetology only, not into medical dermatology.

— Ashutosh Shukla
Derma EBITDA Margins Derma · when sales INR50-60 crores · Medium confidence 12-14%

So, what we are anticipating is that the EBITDA margins will be close to 12% to 14% if we are close to sales of INR50 crores to INR60 crores.

— Ashutosh Shukla

Revenue Mix

Branded Formulation Contribution Revenue Mix · by FY30 · High confidence 51%

From 36% today

Just like to share that this financial year the branded formulation will contribute around 36% which will go up to 51% by FY30.

— Management
Export Contribution Revenue Mix · by FY30 · High confidence 30%

From 18% today

As far as export is concerned, currently it is 18% which will go up to 30%.

— Management
CDMO Contribution Revenue Mix · by FY30 · High confidence 13%

From 39% today

CDMO contribution will be reduced from 39% to 13%.

— Management

Product Launches

New NDDS Launches Product Launches · FY27 · High confidence 2

Yes, 100% we are on track. One new NDDS will be launched in next 2 months. And one NDDS we have just got a BE approval, so we'll be starting the bioequivalence very soon with CDSCO and will be submitting that report by November. And maybe in after this year, maybe by January-February we should get the approval of that product.

— Rahul Batra
New Product Launches Product Launches · next 3-4 years · High confidence 20-25

We will be launching around 20 to 25 new products in the coming three-four years that includes the NDDS products as well.

— Rahul Batra

What to watch in Q1 FY27

Export Sales Growth

Q1 FY27 and H1 FY27

Current -11% in FY26

Target >50% growth in FY27, ~30% in H1 FY27

Why it matters

Export sales declined in FY26 due to tender delays, and management has provided strong guidance for a significant rebound in FY27, which is crucial for overall revenue growth.

The tenders got delayed by almost four months. We are happy to announce the tenders have been awarded and the supply will be starting from the first quarter of FY27. We are on track to have a growth of more than 50% in exports in FY27.

Risks & concerns

Platins Business Unprofitability due to NPPA Pricing
high

Domestic Carboplatin NPPA price (INR2850) is below cost (INR2300-2400), making it unprofitable and leading to non-supply in H2 FY26, impacting CDMO sales by 7% (INR30-35 crores business).

Management acknowledged
Export Tender Delays
medium

Tenders worth INR20-25 crores, expected in Q4 FY26, were delayed by 4 months and awarded in March 2026, causing an 11% decline in FY26 export revenue.

Management acknowledged
EU GMP Audit Delays
low

New EU rules requiring dossier submission before inspection caused a delay in the EU GMP audit, which is now scheduled for September after three dossiers have been filed.

Management acknowledged

Q&A highlights

8 direct

FY27 Outlook & Margin Expectations Direct

So outlook will be same. We will continue to grow at 20% to 25% annually. We have set a vision of Vision 2030 where we want to double our sales, rather more than double our sales in next three to four years. ... So once the export and the branded sales will improve, the EBITDA margin will generally -- will definitely come up above 23%, 24%.

Analyst sought clarity on future growth and margin targets, which management reiterated and clarified regarding other income inclusion.

Asked by Darshil Zaveri

Export Business Delays and FY27 Rebound Direct

The tenders got delayed by almost four months. We are happy to announce the tenders have been awarded and the supply will be starting from the first quarter of FY27. We are on track to have a growth of more than 50% in exports in FY27.

Analyst questioned the decline in FY26 exports, and management provided a clear explanation and strong forward guidance for FY27 export growth.

Asked by Suruchi Parmar

Nivian Acquisition and Margin Impact Direct

So there will be no compromise on the margin side. The business is already scaled up and presence is already there felt across all the hospitals. So we don't see any further reduce in the EBITDA margins, rather Beta's synergy will help Nivian to procure goods at a lower price what they are taking from the market.

Analyst inquired about Nivian's financials and potential margin dilution, to which management assured no compromise and highlighted synergy benefits.

Asked by Anupama

Derma Business Profitability and Growth Trajectory Direct

Hello, sir. EBITDA basis we have already been positive since last 6 months. So Derma has started giving the EBITDA positive revenue.

Analyst sought confirmation on Derma's profitability, and management confirmed it turned EBITDA positive, indicating a successful turnaround for the segment.

Asked by Rudraksh Raheja

Capacity Utilization and Future Capex Direct

So capacity utilization stands at the oral still we have a leverage of 55%. It's around 40%, 45% we are consuming till now. Injectable liquid we have a again we have an idle capacity for around 35%, 40%. In Lyo, yes, we do have capacity like we are using around 85%. But we have a lot of space in existing formulation plant, so we are planning to install two more Lyo's there. So the capacity will not be any constraint for any future growth.

Analyst questioned current capacity and future investment needs, and management provided detailed utilization figures and assured that capacity would not be a constraint for future growth with minimal capex.

Asked by Rudraksh Raheja

Strategic Diversification Rationale Direct

See, I'll tell you, it's about a bandwidth. Once you are doing certain business, the business become on auto mode where you as a person sitting there, if you are sincere thinking on a strategic point of view, so you don't have work to do. You have selected the product which has to be developed by R&D, you have selected the product which need to be registered in those countries, you have selected the product where RA has to work and give the dossiers on time, then there is nothing new left. So it's about a bandwidth. When you have opportunities, why not utilize those bandwidth and become a better and more diversified company.

Analyst questioned the diversification strategy, and management explained it as a strategic move to leverage bandwidth and pursue additional opportunities without impacting oncology growth.

Asked by Sharat

Platins Business Challenges and Mitigation Direct

But unfortunately, in India, the Carboplatin NPPA price is INR2850 and the costings which company are getting with Carboplatin is around INR2300, INR2400 as on today. So, there are no margins for hospitals. You have to give 20% to the retailer, 10% to the wholesaler. So, these are things which are beyond control, right? But now in last quarter we laid down certain strategies where we could manage to get 10% growth as compared to quarter of December. That was less of Platens.

Analyst inquired about the impact of the Platins business, and management detailed the unprofitability due to NPPA pricing and their strategy to mitigate the impact by focusing on other products.

Asked by Komal Iyer

CCD Conversion Details Direct

Hello. Ma'am, the CCD conversion, I mean the price has already been fixed. It was INR1643 when we allotted this CCD conversion. The face value will remain the same, INR10. INR1633 will be converted into security premium. So, this will happen.

Analyst sought specific details on the CCD conversion, and management provided the fixed conversion price and its breakdown.

Asked by Komal Iyer

3 min read 6 chapters

Detailed narrative

FY26 Financial Performance and Margin Expansion

Beta Drugs Limited reported a net revenue of INR396 crores for FY26, marking a 7.6% increase from INR368 crores in the previous fiscal year. The company achieved a notable expansion in its gross margin, rising from 52.71% to 55.52%. This translated into a 12.8% growth in EBITDA, reaching INR86.85 crores from INR76.97 crores, with EBITDA margins improving from 21.1% to 22.57%. Despite a reported decline in net profit margin to 10.78%, management indicated that excluding extraordinary expenses, the net profit margin would have been above 12.5%.

Segmental Performance and Growth Drivers

The branded sales segment demonstrated strong performance, growing by 20% from INR103 crores to INR123 crores. The API business also saw a significant increase of 23%, reaching INR25 crores from INR20 crores. A key highlight was the Derma segment, which grew by almost 35% from INR12.3 crores to INR16.58 crores and became EBITDA positive in the last six months of FY26. However, CDMO sales grew only marginally by 1% to INR149 crores, primarily due to the non-supply of Platins, which would have added 7% to its growth. Export sales declined by 11% to INR71 crores due to tender delays.

Strategic Acquisition of Nivian Lifesciences

Beta Drugs completed a significant strategic move by acquiring a 66.1% stake in Nivian Lifesciences, a fertility business, for a total consideration of INR69.4 crores, valuing the company at INR105 crores. This transaction closed in April 2026, and Beta Drugs expects to consolidate Nivian's full-year revenue for FY27. Nivian reported revenues of INR45-46 crores in FY26 with EBITDA margins of 18-19% and a PAT of 9-10%. Management anticipates significant synergies, including improved procurement and leveraging Beta's access to corporate hospitals, driving 30% annual growth for Nivian over the next 3-4 years.

Future Growth Outlook and Vision 2030

The company has set an ambitious Vision 2030, aiming to achieve INR900 crores in sales within the next four years, representing more than a doubling of current sales. This growth will be underpinned by an overall annual revenue growth target of 20-25%. Key drivers include branded oncology (20-25% annual growth), cosmetology (30-40% annual growth), and Nivian (30% annual growth). Exports are projected to grow over 50% in FY27 and contribute 30% of total revenue by FY30, with branded formulation's share increasing to 51% and CDMO's share reducing to 13% by FY30.

Capital Expenditure and Debt Management

Beta Drugs invested approximately INR45 crores in FY26 and plans a modest capital expenditure of not more than INR25 crores over the next two years. A significant portion of this capex, around INR24-26 crores, is allocated to an intermediate plant, which includes an INR9 crore acquisition and INR15-17 crore investment. This plant aims to reduce dependency on imported Key Starting Materials (KSMs) and is expected to be commercialized this year. The Compulsorily Convertible Debentures (CCD) are scheduled for conversion in May 2026, with the associated interest cost impacting only two months of FY27.

Product Pipeline and Market Expansion Initiatives

The company launched two new NDDS and five new products in FY26, with plans to introduce 20-25 new products, including NDDS, over the next 3-4 years. Beta Drugs has submitted over 200 dossiers in the last 1.5 years and expects around 100 new registrations this year across various geographies. Three dossiers have been submitted for EU audit, scheduled for September, as part of the strategy to expand into regulated markets and target global registration of 8 niche molecules (first or second generics).

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