CORONA Remedies Limited — Q4 FY26 earnings call

Call held 12 May 2026

Management summary

CORONA Remedies Limited delivered a robust performance in Q4 and FY26, significantly outpacing industry growth with strong revenue and PAT expansion. The company's strategic focus on chronic and semi-chronic therapies, coupled with successful acquisitions and new product launches, positions it for continued growth, despite a temporary dip in Q4 margins attributed to growth investments.

Highlights

  • FY26 Revenue grew 17.3% YoY to INR 1,403 crores, outperforming IPM growth of 8.6%.

  • FY26 Adjusted PAT increased 33.4% YoY to INR 199 crores.

  • FY26 EBITDA margin expanded 80bps to 20.9%.

  • Declared a 100% dividend, equivalent to INR 10 per share for FY26.

  • Successfully completed two strategic acquisitions (Wokadine and Bayer's Portfolio) and entered the biosimilars market with three new product launches.

Concerns

  • Q4 FY26 EBITDA margin declined by 90bps to 17.6% due to increased employee costs from new division additions and higher R&D spend.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹353 Cr
    YoY +20.2%
  • EBITDA
    ₹62 Cr
    YoY +14.4%
  • EBITDA Margin
    17.6%
  • PAT
    ₹45 Cr
    YoY +44%

FY26

  • Revenue
    ₹1,403 Cr
    YoY +17.3%
  • EBITDA
    ₹293 Cr
    YoY +22.3%
  • EBITDA Margin
    20.9%
  • Adjusted PAT
    ₹199 Cr
    YoY +33.4%
  • CFO
    ₹229 Cr
  • ROCE
    41%
  • RoE
    29.2%

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.

Segment breakdown

  • Q4 FY26 Domestic Business
    18.3% Growth
  • Q4 FY26 International Business
    70% Growth
  • FY26 Domestic/India Business
    16.8% Growth96% Contribution to Total Revenue
  • FY26 International Business
    29.5% Growth
  • FY26 Chronic Segment
    71.9% Contribution to Total Revenue

Capital allocation

high confidence
  • Debt Gross ₹143 Cr · Net cash ₹15 Cr
    • New borrowing Long-term loan from Myoril, to be paid off this year. ₹16 Cr
    • New borrowing Overdraft facility used due to Wokadine acquisition on the last day of March.
    So, first of all, let me tell to all the investors and everyone on behalf of you that we don't have any single cash credit facility from any banks. We avail the facility, but we don't use it at the end of the day. INR 142.9 crores borrowings is only because of the overdraft or majorly because of the overdraft on the basis of FDs which we have. So, we have FDs on the asset side and we have overdraft from the liability side in the form of borrowings.
  • Dividend ₹10/share (final)
    We are delighted to announce 100% dividend, which is equal to 10 per share for FY26, reflecting our strong financial performance and continued commitment to delivering value to our shareholders.
  • M&A Wokadine Acquisition · Closed

    To enter the 650 plus crore Povidone Iodine market and strengthen presence in targeted specialties.

    Anticipating 25% revenue growth for 3-4 years and 400 basis point gross margin correction in the first year.

    We have successfully completed two strategic acquisitions in FY26, the recent acquisition of Wokadine... The acquisition of Wokadine, which is ranked 2 in the Indian Povidone Iodine market, enables us to enter into the 650 plus crore Povidone Iodine market, strengthening our presence in targeted specialties.
  • M&A Bayer's Portfolio Acquisition · Integrated

    To deepen footprint in the rapidly growing infertility market and capitalize on opportunities from the Bayers Zydus Relaunch Portfolio.

    Relaunch initiated in Q4 FY26 with very encouraging initial response.

    and the earlier acquisition of the Bayers Portfolio, whose relaunch was initiated in Q4FY26. ... This strategic initiative will enable us to effectively capitalize on the opportunities arising from the Bayers Zydus Relaunch Portfolio, which also deepens our footprint in the rapidly growing infertility market.
  • Liquidity Liquidity disclosed Company maintains a net cash surplus position.
    We have continued to maintain healthy return ratios while remaining a net cash surplus company.

Guidance & targets

Revenue

  • Organic Revenue Growth Revenue · FY27 · High confidence 15% plus
    We expect to sustain 15% plus revenue growth organically and 25% revenue growth in acquired brand with 20% plus PAT growth in FY27 too.

    — Nirav Mehta

  • Acquired Brand Revenue Growth Revenue · FY27 · High confidence 25%

    — Nirav Mehta

  • Revenue Growth Revenue · next 3 to 5 years · High confidence 15%
    Our philosophy is to grow 15% on a revenue and 20% on a PAT basis on a year-on-year basis for coming 3 to 5 years down the line.

    — Bhavin Bhagat

  • Organic Domestic Revenue Growth Revenue · next 2-3 years · High confidence 15%
    As far as 15% organically revenue growth is concerned, we are committed for 15% organic domestic revenue growth, domestic and international put together, more or less international is about 4% to the business, so it does not impact much here and there, but 15% organically and inorganic portfolio which we have acquired, we are committed to give 25% revenue growth in inorganic portfolio we have just acquired and 20% plus profitability as the guiding force for now and for another 2-3 years at least we are seeing the visibility for this.

    — Nirav Mehta

  • International Business Growth Revenue · next 3-4 years · High confidence 8-9%
    So, moving forward next I think the next 3-4 years at least I am seeing high single digit CI for international business about 8-9% and 90% plus CI with the India business.

    — Nirav Mehta

  • Wokadine Revenue Growth Revenue · next 3 to 4 years · High confidence 25%
    Yes. So, thank you. So, as far as Wokadine is concerned, as you rightly said, it is INR 20 crore brand and we are anticipating about 25% revenue growth for at least 3 to 4 years in the Wokadine.

    — Nirav Mehta

Profitability

  • PAT Growth Profitability · FY27 · High confidence 20% plus
    We expect to sustain 15% plus revenue growth organically and 25% revenue growth in acquired brand with 20% plus PAT growth in FY27 too.

    — Nirav Mehta

  • PAT Growth Profitability · next 3 to 5 years · High confidence 20%
    Our philosophy is to grow 15% on a revenue and 20% on a PAT basis on a year-on-year basis for coming 3 to 5 years down the line.

    — Bhavin Bhagat

Margin

  • Gross Margins Margin · coming years down the line · High confidence 80%
    We have always said in our commentary that we would be maintaining the gross margins at the range of 80% in the coming years down the line.

    — Bhavin Bhagat

  • Wokadine Gross Margin Correction Margin · first year (post-acquisition) · High confidence 400 basis points
    Resulted, we are anticipating about 400 basis point of gross margin correction in the first year.

    — Nirav Mehta

Industry Growth (IPM)

  • Overall IPM Growth Industry Growth (IPM) · FY27 · High confidence 10% to 10.3%
    I am anticipating about 10% to 10.3% overall growth as far as this year is concerned, with the volume growth of about 1.5% to 2%, and rest is price and NI. So, I have been very optimistic as far as IPM in FY '27 is concerned.

    — Nirav Mehta

Volume

  • Company Volume Growth Volume · FY27 · High confidence 3x to 4x IPM volume growth
    But overall, we are expecting about 3x to 4x volume growth as far as our growth is concerned.

    — Nirav Mehta

What to watch in Q1 FY27

Q1 FY27 EBITDA Margin

Next quarter (Q1 FY27 results)
Current 17.6% (Q4 FY26)
Target Improvement towards FY26 average of 20.9%

Why it matters

To assess if the Q4 margin dip was temporary due to growth investments or indicates a more structural trend.

EBITDA margin declined by around 90bps and stood at 17.6%. Decline was on account of an increase in employee cost with respect to the addition of two new divisions... However, let me tell you all, these are all growth investments which will reap benefits for the future period.

Risks & concerns

  • Q4 EBITDA margin decline due to growth investments

    medium

    Q4 FY26 EBITDA margin declined by 90bps to 17.6% due to increased employee costs from new division additions and higher R&D spend, which management views as growth investments.

    Management acknowledged

  • Potential impact of rising Raw Material (RM) costs and geopolitical events (Middle East)

    medium

    Management noted that oil and other parameters impact APIs, and while they have 90-120 days of inventory, it's too early to quantify the long-term impact if the situation persists.

    Analyst acknowledged

Q&A highlights

7 direct
Structural outlook on margins and long-term targets Direct
Our philosophy is to grow 15% on a revenue and 20% on a PAT basis on a year-on-year basis for coming 3 to 5 years down the line. ... we would be maintaining the gross margins at the range of 80% in the coming years down the line.

Clarifies management's long-term margin philosophy and commitment to 80% gross margins despite a Q4 dip, aligning with revenue and PAT growth targets.

Asked by Pratik Dharmshi

Strategy for Biosimilars and Biologics market entry Direct
More or less, biosimilars have been in two ways. Either in-licensing or it is organically. ... we are open for all the things as far as complex, generic, and biologics biosimilar is concerned.

Explains the dual approach (in-licensing/organic) for entering the new, high-growth biosimilars segment and the company's broad strategic openness.

Asked by Pratik Dharmshi

Domestic vs. Export Revenue Growth Breakup Direct
Domestic growth, we have 18.3% whereas international business growth is 70%, which is totaling to 20.2% for Q4 FY '26. And for the full year FY26, our domestic slash India business growth comprise of 16.81%, whereas the international business comes to 29.5%, which culminates to over 17.3% revenue growth.

Provides granular detail on growth drivers by geography for both the quarter and full year, highlighting strong international business growth.

Asked by Amay Chalke

Impact of rising Raw Material costs and Middle East situation on Gross Margins Partial
So, to be very honest, it is too early to comment on it. As we have about 90 days to 120 days of inventory available, we have started taking the impact on it, and because the oil and other parameters impact many active pharmaceutical ingredients. So, that will have an impact for sure, but if this situation has been controlled in one month, I think the impact is negligible. If it goes a little long, it may have a little more impact, but it's too early to comment on the subject.

Management acknowledges potential risks from rising RM costs and geopolitical events but indicates it's too early to quantify the impact, making it a key watch item for future quarters.

Asked by Alankar Garude

Application of AI for doctor engagement and sales force effectiveness Direct
As far as marketing practices are concerned, we are utilizing SFE, that is, sales force effectiveness, as a tool, which gives a more robust, critical analytic tool on a daily basis to a concerned medical representative about their last visit, last discussion with the doctor, new scientific indications, new scientific discussions for the doctor, and ongoing scientific knowledge also.

Details specific applications of AI in sales force effectiveness and doctor engagement, showcasing innovation in marketing and sales strategies.

Asked by Sidharth Negandhi

MR strength and additions in FY26 Direct
It is about 2,650 and we have added about 450. Put together today we have a MR strength of 3,100.

Provides concrete numbers on sales force expansion, a key driver for pharmaceutical growth and market penetration.

Asked by Gaurav Tinani

Semaglutide market potential and launch strategy Direct
I think for the Semaglutide market is concerned, people are talking to anticipate this market on a first year from INR 500 crore to INR 5,000 crore. ... I think the first year may be a year of INR 2,000 crore to INR 2,500 crore as the Semaglutide market.

Highlights the significant market opportunity for Semaglutide and the company's entry strategy with two brands targeting different segments, indicating a major new growth avenue.

Asked by Gaurav Tinani

Scaling strategy and margin improvement for acquired Wokadine brand Direct
as far as Wokadine is concerned... we are anticipating about 25% revenue growth for at least 3 to 4 years in the Wokadine. ... we are anticipating about 400 basis point of gross margin correction in the first year.

Provides specific growth and margin improvement targets for a recently acquired brand, indicating clear integration and value creation plans.

Asked by Gaurav Tinani

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance Outpacing Industry Growth

CORONA Remedies Limited reported a robust FY26, with revenue growing 17.3% YoY to INR 1,403 crores, significantly outpacing the IPM market growth of 8.6%. Adjusted PAT increased by 33.4% YoY to INR 199 crores, and EBITDA margin expanded by 80bps to 20.9%. This performance reflects consistent outperformance, with the company growing at nearly 2x the industry rate.

Strategic Acquisitions and New Market Entries

The company successfully completed two strategic acquisitions in FY26: Wokadine, which is ranked 2 in the Indian Povidone Iodine market, and the Bayer's Portfolio, whose relaunch began in Q4 FY26. These acquisitions strengthen presence in targeted specialties and the rapidly growing infertility market. Additionally, CORONA entered the biosimilars and biologics market with the launch of three products, offering substantial long-term growth potential.

Manufacturing Capacity Expansion and International Certification

To support growth, CORONA is expanding its manufacturing capabilities by adding a new 600-kg line and commissioning a dedicated hormone manufacturing plant, expected to be operational in Q1 or Q2 of FY27. The company also achieved EAEU GMP certification, enabling expansion into key Eurasian markets like Russia, Belarus, and Kazakhstan, further strengthening its international business.

Q4 FY26 Margin Compression Due to Growth Investments

In Q4 FY26, EBITDA margin declined by 90bps to 17.6% from 20.9% in FY26. This was attributed to increased employee costs from the addition of two new divisions (multi-specialty and infertility) and higher R&D spend. Management emphasized these are 'growth investments' expected to yield future benefits.

Sales Force Effectiveness and Digital Adoption

CORONA has expanded its MR strength by 450, reaching a total of 3,100, and is actively using AI for sales force effectiveness (SFE). This tool provides medical representatives with critical analytic insights for doctor interactions, new scientific indications, and ongoing knowledge, enhancing engagement with healthcare professionals. The company's PCPM (Per Capita Per Month) has increased from INR 3.62 lakhs to INR 4.11 lakhs.

Long-term Growth and Profitability Outlook

Management reiterated its philosophy to achieve 15% revenue growth and 20% PAT growth YoY for the next 3-5 years. They expect to sustain 15% plus organic revenue growth and 25% revenue growth from acquired brands, with 20% plus PAT growth in FY27. Gross margins are targeted to be maintained at around 80% in the coming years.

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