Detailed Narrative
Custom Synthesis: Strong Momentum with GLP-1 Optionality
CS grew to 53% of Q3 revenue with quarterly run rate of ₹1,200+ crores. Strong RFP pipeline driven by long-standing customer relationships and China Plus One benefits. GLP-1 opportunity spans building blocks (Fmoc-protected amino acids), fragments (tetramers to decamers), and full peptide molecules using both SPPS and LPPS. Company makes own resins and protected amino acids providing unique backward integration advantage. Also exploring oligonucleotides and new modalities.
Kakinada Unit-III: Strategic Manufacturing Expansion
Phase 1 commenced commercial operations in January 2025 after ₹1,340 crores invested on 200 of 500 total acres. Seven production blocks manufacturing starting materials and registered starting materials for backward integration. No negative P&L impact expected as costs offset by input cost savings. Unit 1 and 2 at 80% utilization will see freed capacity for GMP products. Full Phase 1 operational in ~6 months, Phase 2 plans depend on market opportunities with 300 acres available.
Financial Performance: Margin Expansion on Operating Leverage
Q3 revenue grew 25% YoY with 9M constant currency growth at 22%. EBITDA margins at ~32% driven by favorable CS mix and operating leverage. Material consumption stable at 40% of sales. Company opted for new tax regime under Section 115BAA from FY25. Generic segment showing volume recovery as post-COVID destocking normalizes, though pricing pressure persists. Cash position of ₹3,659 crores provides flexibility for capacity expansion.