Beta Drugs Ltd

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%.

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.

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.

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.

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.

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).