CORONA

CORONA Remedies Limited reported robust financial results for Q2 FY26, with revenue growing 15.1% YoY to ₹361.1 crores. EBITDA for the quarter stood at ₹78.5 crores, reflecting a 17.4% YoY growth, and EBITDA margins improved by 40 bps to 21.7%. For H1 FY26, revenue increased by 17% YoY to ₹707.7 crores, with PAT growing significantly by 35.1% YoY to ₹98.5 crores. The company also achieved a healthy annualized ROCE of 49.7% and ROE of 31.1% for the half year.

The company is strategically expanding its presence beyond existing areas like women's healthcare, cardio-metabolic, urology, and pain management. It plans to develop and unlock six to seven new therapies, including infertility, spine, rheumatoid, CNS, dermatology, and gastrointestinal, over the next three to five years. The initial focus for this year is on infertility, with a goal to achieve leadership in each new therapy area.

In July 2025, CORONA acquired seven brand trademarks from Bayer Zydus Pharma for approximately ₹7.5-8 crores, significantly bolstering its infertility portfolio. These brands, including Fostine, Menodac, Ovidac, and Luprofact, are currently undergoing validation. The company plans to launch a dedicated team of less than 50 specialists within a few months to target infertility specialists and introduce these core infertility therapy products within the next three to four months.

CORONA aims to grow its international business contribution from the current 3.5% to a higher single-digit percentage (8-9%) within a couple of years. This expansion will be driven by a complex generic female hormonal product portfolio, supported by the new EU GMP approvable plant in Ahmedabad. This plant is expected to commence commercial operations by the end of Q2 or early Q3 FY27, with WHO approval anticipated by Q4 FY27, and EU GMP inspection targeted by the end of FY27.

The company emphasized its commitment to Environmental, Social, and Governance (ESG) principles. Environmental initiatives include an existing 1.3 MW solar plant and a planned 4.25 MW solar park investment, along with a zero liquid discharge effluent treatment plant at its Bhayla facility. Socially, CORONA supports sports and education, organizes blood donation camps, and promotes gender equality, with 40% female employees at its solar plant. The company also holds an EDGE Advanced certificate for energy and water saving measures.

CORONA maintains a disciplined approach to capital allocation, evidenced by its status as a net cash surplus company and strong EBITDA to OCF conversions. The company's M&A strategy focuses on acquiring brands that align with its culture and character, rather than solely on the origin of the target company (multinational or Indian). While actively evaluating new opportunities, the immediate focus is on integrating and maximizing the value from the recent Bayer Zydus acquisition.

The company's Indian market presence is characterized by a focus on the "middle of the pyramid," targeting specialist and super-specialist doctors in urban and semi-urban markets. CORONA plans to expand its medical representative (MR) force by 5% to 7% year-on-year to support market penetration and the launch of new super-specialty therapies. Currently, the company has over 2,600 MRs, and its productivity is approximately ₹3.9-4 lakhs per capita per month, with variations based on tenure.