CORONA Remedies Limited — Q2 FY26 earnings call

Call held 5 Jan 2026

Management summary

CORONA Remedies Limited reported a strong Q2 and H1 FY26, with revenue growing 15.1% and 17% YoY respectively. Profitability also saw significant improvement, with Q2 EBITDA margin at 21.7% and H1 PAT growing 35.1% YoY. The company highlighted its recent acquisition of Bayer Zydus Pharma brands to bolster its women's healthcare and infertility portfolio, alongside plans for new therapeutic area entries and international expansion.

Highlights

  • Strong Q2 FY26 revenue growth of 15.1% YoY to ₹361.1 crores.

  • EBITDA margin improved by 40 bps to 21.7% in Q2 FY26.

  • H1 FY26 PAT showed robust growth of 35.1% YoY to ₹98.5 crores.

  • Healthy annualized ROCE of 49.7% and ROE of 31.1% for H1 FY26.

  • Successful acquisition of seven brand trademarks from Bayer Zydus Pharma in July 2025, expanding into the anti-platelet and infertility markets.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹361.1 Cr
    YoY +15.1%
  • EBITDA
    ₹78.5 Cr
    YoY +17.4%
  • EBITDA Margin
    21.7%
  • PAT
    ₹52.3 Cr
    YoY +21.8%

H1

  • FY26 Revenue
    ₹707.7 Cr
    YoY +17%
  • FY26 EBITDA
    ₹148.3 Cr
    YoY +27.4%
  • FY26 EBITDA Margin
    20.9%
  • FY26 PAT
    ₹98.5 Cr
    YoY +35.1%
  • FY26 Annualized ROE
    31.1%
  • FY26 Annualized ROCE
    49.7%
  • FY26 OCF to EBITDA
    76.5%
  • FY26 Net Working Capital Days
    23 days

What they filed

Q1 FY27: revenue up 21.6%, net profit up 30.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue314 298 294 347 361 +15%342 +15%353 +20%422 +22%
EBITDA67 69 54 70 78 +16%83 +20%62 +15%93 +33%
Net profit43 45 31 46 52 +21%41 −9%45 +45%60 +30%
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.

Capital allocation

high confidence
  • M&A Seven brand trademarks from Bayer Zydus Pharma Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    To enter 1500 plus crores anti-platelet market and strengthen women's healthcare/infertility product range.

    Expected to grow, invest and expand in a disciplined manner, creating a diversified product portfolio.

    In the month of July 2025, CORONA had acquired seven brand trademarks from Bayer Zydus Pharma. We shall leverage brand equity and knowledge transfer of these seven brand trademarks and launch its line extension as per the market need. Let us talk about the seven brand trademarks. ... We have paid about INR 7.5 crores, INR 8 crores behind that acquisition, but that will take us along with that acquisition.

Guidance & targets

Revenue

  • Revenue Growth Revenue · next three to four years · High confidence 15%
    Given our diversified and expanding product portfolio, healthy brand strength, wide and growing marketing and distribution network, experienced leadership and financial discipline, we are on track to deliver 15% CAGR, 15% revenue growth and 20% PAT or EPS growth for next three to four years.

    — Nirav Mehta

  • International Business Contribution Revenue · in a couple of years · Medium confidence 8-9% higher single-digit
    We are quite hopeful that with this, in a couple of years, we can have a CI of around eight, nine percent higher single-digit CI with international business too.

    — Nirav Mehta

Profitability

  • PAT/EPS Growth Profitability · next three to four years · High confidence 20%
    Given our diversified and expanding product portfolio, healthy brand strength, wide and growing marketing and distribution network, experienced leadership and financial discipline, we are on track to deliver 15% CAGR, 15% revenue growth and 20% PAT or EPS growth for next three to four years.

    — Nirav Mehta

  • PAT/EPS Growth Profitability · next 4 years · High confidence 20%
    As I said to madam earlier also, our endeavor is about 20% PAT or EPS growth year-on-year for next 4 years.

    — Nirav Mehta

R&D

  • R&D Spend as % of Revenue R&D · ongoing · Medium confidence <2%
    We will expand a little, but if we grow on the revenues, like 15% plus, I think that percentage will remain less than 2%.

    — Nirav Mehta

Headcount

  • Medical Representative (MR) Growth Headcount · year-on-year · High confidence 5-7%
    So, you know, as far as expansion is concerned, we have decided to expand these MR numbers by 5% to 7% on year-on-year because today we are on a critical mark of around 2,600 plus medical representatives.

    — Nirav Mehta

What to watch in Q3 FY26

Dedicated Infertility Team Launch

within a few months (Q3/Q4 FY26)
Current In process of validation, team under development
Target Team launched and operational

Why it matters

Crucial for leveraging Bayer Zydus acquisition and establishing presence in the infertility market.

And I think so in the few months of time from now, we are going to launch a separate team for infertility and entering into the infertility market with these products, a specialized team of about less than 50 people across the nation who are going to meet only infertility specialists.

Q&A highlights

8 direct
Strategy for growth in the infertility segment following Bayer Zydus acquisition. Direct
We are in the process of validation as of now. And I think so in the few months of time from now, we are going to launch a separate team for infertility and entering into the infertility market with these products, a specialized team of about less than 50 people across the nation who are going to meet only infertility specialists.

Details the company's immediate plans for leveraging the acquired Bayer Zydus infertility brands and building a dedicated sales force.

Asked by Alankar Garude

Current position and future scale in neurotherapeutic areas (nephro, CNS, onco, dermatology). Direct
We are working to develop six, seven therapies today like infertility, spine, rheumatoid, CNS, dermatology, gastrointestinal. And what we have decided, we will unlock each therapy at the right time, starting with the infertility in this year. Slowly and gradually, we will unlock each therapies in, next 3 to 4 to 5 years of time.

Outlines the company's long-term strategy for phased entry into new therapeutic areas and its ambition to achieve leadership in each.

Asked by Alankar Garude

R&D spend being lower than peers and plans for beefing up the R&D team/investments for new therapeutic areas. Direct
We will expand a little, but if we grow on the revenues, like 15% plus, I think that percentage will remain less than 2%. And today about 100 plus scientists are working in R&D.

Clarifies that R&D spend as a percentage of revenue is expected to remain low despite expansion, indicating operating leverage or a focus on specific R&D types.

Asked by Alankar Garude

Detailed explanation of CORONA's brand approach in India and its contribution to overall growth. Direct
Brand gives a flavor, a quality adherence and the confidence in the set customer's mind. We are present in four therapies like women's healthcare, cardio-diabeto, urology and pain management. And we try to launch the product with little niche or little differentiated manner.

Provides insight into the company's core strategy of building strong, differentiated brands in specific therapeutic areas within the Indian market.

Asked by Yug Modi

Strategy for international business, new geographies, and the role of the new hormonal plant. Direct
we are going ahead to develop a complex generic female hormonal product portfolio, with help of the La Chandra as a backward integration or forward integration block on the hormones, we have already set in Ahmedabad. And it's EU GMP approvable plant which is going to kick start by the end of Q2 or early Q3 of FY '27.

Details the company's international expansion plans, focusing on hormonal products and the timeline for the new EU GMP-approved plant.

Asked by Yug Modi

Progress and expected timelines for WHO and EU GMP approvals for the new hormonal plant. Direct
the building is ready. We have got the state, Schedule M license also. We are now, you know, going to kick start the commercial by Q2, end of Q2 or early of Q3 of FY '27. And once we'll kick start the commercial activities by Q4, we are expecting about Q4 of FY '27, we are expecting WHO.

Provides concrete timelines for the operationalization and regulatory approvals of a key manufacturing facility for international expansion.

Asked by Rahul Jeewani

Outlook on the M&A market in India and whether the company will continue to acquire non-core portfolios from MNCs. Direct
It's nothing like a multinational or a top Indian company. There is no differentiator in our mind. The important is what sort of culture we are acquiring out of the brand, what sort of character we are acquiring from the brand.

Clarifies the company's M&A philosophy, emphasizing cultural fit and brand character over the origin of the target company.

Asked by Rahul Jeewani

Seasonality of business (H2 vs H1) and sustainability of 22-23% margin bank for FY27. Direct
So, it has been more or less 100 basis point here and there as far as revenue and profitability, PAT margin is concerned. You know, if you try to understand CORONA in a more deeper manner, H1, H2 is 50-50, more or less 100 basis point here and there.

Addresses concerns about business seasonality and reiterates the company's commitment to 20% PAT/EPS growth, implying margin sustainability.

Asked by Niharika Agarwal

3 min read 7 chapters

Detailed narrative

Strong Q2 & H1 FY26 Financial Performance

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.

Strategic Expansion into New Therapeutic Areas

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.

Leveraging Bayer Zydus Acquisition for Infertility Growth

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.

International Business and Hormonal Manufacturing

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.

Commitment to ESG and Sustainable Growth

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.

Disciplined Capital Allocation and M&A Philosophy

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.

Market Presence and Field Force Expansion

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Healthcare earnings calls