CORONA Remedies Limited — Q3 FY26 earnings call

Call held 3 Feb 2026

Management summary

CORONA Remedies Limited delivered strong financial results for Q3 and 9M FY26, significantly outperforming the Indian Pharmaceutical Market. Revenue and EBITDA showed robust double-digit growth, driven by volume and new product introductions. The company maintained strong cash flow generation, is pursuing strategic brand acquisitions, and has expanded its international market access through recent GMP accreditations, with a clear focus on long-term profitable growth.

Highlights

  • Revenue for Q3 FY26 increased by 15% YoY to ₹342 crores, demonstrating healthy growth.

  • EBITDA for Q3 FY26 grew 20% YoY to ₹83 crores, with EBITDA margin improving by 100 bps to 24.3%.

  • For 9M FY26, revenue grew 16% YoY to ₹1,050 crores and EBITDA grew 25% YoY to ₹231 crores, with margin improving by 140 bps to 22%.

  • CORONA was the #1 fastest-growing pharmaceutical company among the top 30 in India for Q3 FY26, growing at 18.9% compared to IPM's 9.6%.

  • The company reported a strong OCF to EBITDA conversion of 86% for 9M FY26 and is a net cash surplus company, indicating robust financial health and self-funding capability.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹342 Cr
    YoY +15%
  • EBITDA
    ₹83 Cr
    YoY +20%
  • EBITDA Margin
    24.3%
  • PAT Adjusted
    ₹56 Cr
    YoY +24%

9M FY26

  • Revenue
    ₹1,050 Cr
    YoY +16%
  • EBITDA
    ₹231 Cr
    YoY +25%
  • EBITDA Margin
    22%
  • PAT Adjusted
    ₹154 Cr
    YoY +31%
  • Annualized ROE
    31%
  • Annualized ROCE
    48%
  • OCF to EBITDA
    86%

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
  • Capex Capex disclosed
    • Capitalized 600 kg line, enhancing 40% capacity
    • Need for another plant in FY28-FY29
    So we have just capitalized our 600 kg line which enhances our 40% capacity as of now. Now we will need of another plant in as per our predictions and planning. I think we required one more plant in FY'28 to FY'29. So we will start thinking on this after few months.
  • Debt Debt disclosed
    Today also we have been 100 crore plus net cash positive company.
  • M&A Bayer acquired brands Acquisition · Integrated

    Address therapy gaps and diversify product offerings, particularly in antiplatelet and combination therapies and IVF.

    Commercialization of Noklot Plus to begin in Q4 FY26; 4-5 brands for IVF portfolio to be launched.

    After acquiring brands from giants like GlaxoSmithKline, Abbott, Sanofi, etc., we have been successful in scaling those brands considerably and we hope to continue the same trend with several brand acquisitions from Bayer in July 2025. The commercialization of the portfolio acquired from Bayer will begin in Q4 FY'26 with the launch of Noklot Plus.
  • M&A Two brand acquisitions Acquisition · Announced

    Evaluating for fitment with existing portfolio.

    Nothing concrete yet, but actively working on it.

    we are constantly evaluating the things as of now also we are evaluating on two brand acquisitions but it is always been once out of hundred so we never know that when you know these things will convert into the reality but yes we are bang on, we are working hard into it that if any brand or a portfolio is been in the fitment, we are happy to see it and you know we have several examples of success in this fashion so we are looking into it as of now nothing concrete into it.
  • Liquidity Liquidity disclosed Company is net cash positive with over 100 crore, indicating strong internal cash generation.
    Today also we have been 100 crore plus net cash positive company. I don't think so that we required any further capital to boost the international business.

Guidance & targets

Revenue

  • Revenue Growth Revenue · annual · High confidence 15%
    Our engine brand performed in line with the expectations. Going forward, our intent and strategy is to increase our market share across our key therapies areas by focusing on chronic and subchronic segments, offering products across the lifecycle of a patient. The strategy is primarily focused on launching new products that address unmet patient needs within existing therapy areas. By identifying gaps in patient care and unmet medical needs, we aim to introduce brand line extensions that cater to evolving therapeutic landscapes. Apart from the growing organically-brand acquisitions and in-licensing arrangements, we remain key growth drivers at CORONA. We are also intensifying our focus with specialist and super-specialist prescribers through our medical representative network to enhance our presence in high-value therapeutic segments. 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 consistent growth and stable profitability. We expect to continue growing our revenue in mid-teen range and our profit after tax at high-teen range.

    — Nirav Mehta

Profitability

  • PAT Growth Profitability · annual · High confidence 20%
    Our engine brand performed in line with the expectations. Going forward, our intent and strategy is to increase our market share across our key therapies areas by focusing on chronic and subchronic segments, offering products across the lifecycle of a patient. The strategy is primarily focused on launching new products that address unmet patient needs within existing therapy areas. By identifying gaps in patient care and unmet medical needs, we aim to introduce brand line extensions that cater to evolving therapeutic landscapes. Apart from the growing organically-brand acquisitions and in-licensing arrangements, we remain key growth drivers at CORONA. We are also intensifying our focus with specialist and super-specialist prescribers through our medical representative network to enhance our presence in high-value therapeutic segments. 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 consistent growth and stable profitability. We expect to continue growing our revenue in mid-teen range and our profit after tax at high-teen range.

    — Nirav Mehta

EBITDA Margin

  • EBITDA Margin EBITDA Margin · medium to long term · Medium confidence high 20s or 30%
    Answering your last question about the margin expansion by 30% what you are saying and what we are currently at 20%, 21% or 22% from an EBITDA standpoint, yes, having said then as my employee cost will reduce, my EBITDA margins will improve.

    — Bhavin Bhagat

Headcount

  • Medical Rep Additions Headcount · yearly basis · High confidence 5%-6%
    we would be deploying 5%-6% medical reps out of the total medical reps on a yearly basis on average terms

    — Bhavin Bhagat

International Business

  • International Business Share of Revenue International Business · years to come · Medium confidence 7%-8% then 8%-9%

    Previously 3%-4% → 7%-8% then 8%-9%

    So this 3%-4% will go to 7%-8% and then further go to 8%-9% in the years to come.

    — Nirav Mehta

New Products

  • New Product Introductions New Products · per year · High confidence 8 to 10
    So more or less about 8 to 10 new introductions per year, if it is with the acquisition or it is with the organically majorly about 95% it is organically and 5%-7% chances are there with the inorganically.

    — Nirav Mehta

Manufacturing

  • Manufacturing vs CDMO Mix Manufacturing · ongoing · High confidence 65% manufacturing, 35% CDMO
    Generally as far as the 15% revenue growth is concerned, it is more or less or with the organically with the team because any expansion gives first year, first 2-3 years is the base years, so they are not going to contribute much into the growth trajectory but yes for the future you have to expand the team also and that is our guideline is about 5% to 7% people on year on year or put together we try to expand the people in the country of India. And as far as our own manufacturing and CDMO/CMO, I think so that the ratio is about 65% and 35%. More or less it remains same, 65% and 35%.

    — Nirav Mehta

What to watch in Q4 FY26

Bayer Acquired Portfolio Commercialization (Noklot Plus)

Q4 FY26
Current Launching in Q4 FY26
Target Successful launch and initial sales contribution

Why it matters

Key driver for future growth and validation of the M&A strategy.

The commercialization of the portfolio acquired from Bayer will begin in Q4 FY'26 with the launch of Noklot Plus.

Q&A highlights

5 direct
Primary vs Secondary Sales Outperformance Direct
Honestly, there is nothing much to read into it. More or less, this data captured is just giving you the idea that how market has performed and what you have performed. It has never been possible to match apple-to-apple or pineapple-to-pineapple. It is always a plus or minus here and there. This is just the guideline which IQVIA has shown. So you are talking about 15% versus 18.9% and trying to compare that?

Clarifies that the slight narrowing of outperformance between reported and secondary sales is not a significant concern and is typical data variation.

Asked by Alankar Garude

International Business Growth Post EU-GMP Partial
International business in the pharmaceutical industry has been typical. First, you get the accreditation approved. Then you are going to submit the dossier. For dossier to get the approval will take another 1-2 years and then the business starts. So on a long term, if you understand that the CI after you look at 3-4-5years, the CI of international and India business will be broadly more or less 90 and 10, but not more than that. So more or less it's an India focused industry. And at the same time, if you continue to grow in India business by 15% more or less here and there, it doesn't change the proportionate because there also you grow by 20%-25% and here you grew by 15%, but the pie more or less remains same. So this 3%-4% will go to 7%-8% and then further go to 8%-9% in the years to come.

Provides a realistic long-term outlook for international business growth, emphasizing it's a gradual process and India remains the core focus.

Asked by Alankar Garude

Incremental Investments for Export Growth Direct
No, I think so internal we have enough cash generated from the business as Bhavin bhai has just spoke about OCF EBITDA is 84%. Today also we have been 100 crore plus net cash positive company. I don't think so that we required any further capital to boost the international business.

Reassures investors that the company's international expansion can be funded through internal accruals without needing additional capital.

Asked by Alankar Garude

Margin Expansion Ambition and PCPM Direct
Yes, your question is right that our employee cost percentage compared to the other peers seems to be high but to answering tot that question is that you have to see apple-to-apple growth. In the last 3 years we have deployed 600 medical reps in the system which will increase our employee cost in the initial days and you have also endorsed that in the last 3 years that employee cost percentage has reduced and yes it will come down in coming years down the line but because of the heavy expansion which we did in the last 3 years because of which the employee cost seems to be high and resulting your question another question towards PCPM is linked with the same things that when you deploy medical reps as we mentioned in our earlier course as well that we would be deploying 5%-6% medical reps out of the total medical reps on a yearly basis on average terms so because of which in the past years PCPM was low but now if you see in years down the line PCPM will improve because of our leverage in our PCPM improvement and the revenue growth of 15% what we have committed. Answering your last question about the margin expansion by 30% what you are saying and what we are currently at 20%, 21% or 22% from an EBITDA standpoint, yes, having said then as my employee cost will reduce, my EBITDA margins will improve.

Explains the current higher employee cost percentage due to recent MR additions and outlines the path to future margin improvement through operating leverage and PCPM.

Asked by Shubham Aggarwal

Inorganic Growth Plan Partial
As far as inorganic is concerned we are constantly evaluating the things as of now also we are evaluating on two brand acquisitions but it is always been once out of hundred so we never know that when you know these things will convert into the reality but yes we are bang on, we are working hard into it that if any brand or a portfolio is been in the fitment, we are happy to see it and you know we have several examples of success in this fashion so we are looking into it as of now nothing concrete into it.

Confirms active pursuit of M&A opportunities, indicating potential future growth drivers, though no concrete deals are imminent.

Asked by Hrishit Jhaveri

Long-term Margins vs Peers Partial
See what we think at CORONA we are in the business of you know revenue growth with specialist and super specialist prescription-based business and a long-term business so today we are into four therapies slowly and gradually as I have discussed last time we are going to enter in infertility, sometime we'll enter in rheumatology, spine so we are trying to enter into the new therapies. Always we keep in the mind that we will grow with the 15% and when we talk about 15%, we are talking about double than the market more or less or 1.8 times than the market right when market grows about 8%, 9%, 10% and if you are talking about 15% plus, I think so we are talking about more or less 1.75% to 2% than the market. To do it we have to enter with new therapies. We have to launch new products, we have to go ahead with superficiality focus. Whatever we do we always remain two numbers in the mind 15% revenue growth and 20% profitability growth. If we continue to achieve in the same line directions, I think so we will soon be entered with the peers in the years to come the point is consistently we all we have at CORONA we have to achieve 20% profitability growth and 15% revenue growth if one happens and second doesn't happen I think so it's not a healthy mix revenue growth is equally important as the profitability growth and our eye is on 15% and 20% revenue and profitability for next few years as a guideline also. And I think so if we achieve, we will be more or less near to the peers.

Addresses the margin gap with peers by outlining the strategy of sustained 15% revenue and 20% PAT growth through new therapies and product launches, which is expected to lead to margin convergence.

Asked by Amey Chalke

Seasonality of Business Direct
So as far as CORONA is concerned we have about 70% to 72% of chronic and semi-chronic and acute business has been you know about another 20% 30% on overall business. More or less there is hardly a seasonality but you know 3%-4% plus or minus on quarter-on quarter variation may happen. So hypothetically if we talk about four quarter and 25-25-25-25 then it may be like 22% to 27% sort of revenue and hence the profitability more or less this is the range which we follow but if you look at CORONA since FY'22 you know always we have delivered FY'22 to today we are in FY'26 now we are approaching towards the last quarter of FY-26. We have always delivered on a yearly basis 15% plus revenue growth and (+20%) PAT growth.

Clarifies that the company's business model, with a high proportion of chronic and semi-chronic products, results in minimal seasonality for both revenue and expenses.

Asked by Amey Chalke

IVF Portfolio Ramp-up and Channel Strategy Direct
Number one, we have taken 46 people and this 46 people are meeting to this 3,000 centers where we are already been meeting them since years together with our women's healthcare three divisions like Aarush, Solis and Solaris and as far as supply chain is concerned there is only a change that if these products are coming into the cold chain management we will utilize that channel as a cold chain management or a normal chain management but hygiene, payment, credit days all is remain same as per the CORONA philosophy because we always believe that governance is extremely important in any business and in this institute business we have decided not to give any leverage onto the fundamentals of CORONA, so we will not do it but the products are little unique, little different and the technology is of Bayer, so we will take the utmost advantage of it.

Details the specific strategy for scaling the IVF portfolio, including dedicated sales force, target centers, and commitment to maintaining company's ethical standards.

Asked by Rahul Jeewani

3 min read 7 chapters

Detailed narrative

Q3 & 9M FY26 Strong Financial Performance

CORONA Remedies reported robust financial results for Q3 FY26, with revenue growing 15% YoY to ₹342 crores and EBITDA increasing 20% to ₹83 crores, leading to a 100 bps margin expansion to 24.3%. For the nine months ended December 31, 2025, revenue reached ₹1,050 crores, up 16% YoY, and EBITDA grew 25% to ₹231 crores, with margin improving by 140 bps to 22%. Adjusted PAT for 9M FY26 stood at ₹154 crores, reflecting a significant 31% YoY growth, demonstrating strong operational efficiency.

Market Leadership and Outperformance

The company achieved the #1 fastest-growing pharmaceutical company position among the top 30 in India for Q3 FY26, with an 18.9% growth rate, nearly double the Indian Pharmaceutical Market's (IPM) 9.6%. This strong performance propelled CORONA two ranks up, from 30th to 28th in the IPM. Management highlighted that this growth is primarily volume-driven, supported by the company's strategic focus on chronic and semi-chronic therapeutic segments, which contribute 70%-72% of total revenue.

Strategic Acquisitions and International Expansion

CORONA continues to execute strategic brand acquisitions, including several from Bayer in July 2025, with the commercialization of the antiplatelet brand Noklot Plus slated for Q4 FY26. The company also plans to launch 4-5 brands within the IVF portfolio. Furthermore, the Gujarat facility received EU GMP and Eurasian GMP accreditation, enabling market entry into five EAEU member countries and aligning with the long-term vision of strengthening international partnerships.

Capital Allocation and Self-Funded Growth

The company maintains a strong financial position, being net cash positive with over ₹100 crores and achieving an 86% OCF to EBITDA conversion for 9M FY26. Management confirmed that internal cash generation is sufficient to fund international business expansion, negating the need for additional external capital. A 600 kg line was capitalized, enhancing capacity by 40%, and plans for another plant in FY28-FY29 are being considered.

Future Growth Strategy and Product Pipeline

CORONA aims for an annual revenue growth of 15% and PAT growth of 20%, driven by a strategy of launching 8-10 new products per year. This includes entering new therapeutic areas like infertility and rheumatology. Upcoming launches include the GLP-1 injectable (Wyntide) in Q4 FY26, 4-5 brands in the IVF portfolio, and three biosimilars (Denosumab, recombinant FSH) in Q4 FY26, targeting specialist and super-specialist prescribers.

Margin Outlook and Operating Leverage

Management anticipates continued EBITDA margin improvement, targeting the high 20s or 30% in the medium to long term. This improvement is expected to stem from operating leverage, as the significant investment in deploying 600 medical representatives over the past three years begins to yield higher productivity and improved Per Capita Per Month (PCPM). The company's commitment to 15% revenue growth is expected to further support margin expansion.

Minimal Business Seasonality

Due to its product mix, with 70-72% of its business in chronic and semi-chronic segments, CORONA experiences minimal seasonality. Management indicated that quarter-on-quarter revenue variations are typically limited to a 3-4% fluctuation. Expenses are strategically staggered throughout the year, ensuring consistent profitability and avoiding significant load in any single quarter, contributing to overall business stability.

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

More Healthcare earnings calls