Emcure Pharma

Emcure Pharmaceuticals reported a robust FY26, with revenue reaching ₹9,204 crores, marking a 16.6% year-on-year growth and surpassing the $1 billion milestone, exceeding prior guidance. The company achieved an adjusted PAT growth of over 40% to ₹1,008 crores, with adjusted PAT margins improving by 189 basis points to 10.9%. EBITDA margins for the year expanded by 80 basis points to 19.4%, driven by operational leverage and productivity gains across both domestic and international markets.

Emcure significantly expanded its portfolio through strategic in-licensing and M&A activities. Key partnerships include an exclusive India agreement with Novo Nordisk for Poviztra, an rDNA biologic semaglutide, which has shown promising early uptake. The company also expanded its collaboration with Sanofi for oral anti-diabetic brands (Amaryl & Cetapin) and secured a distribution agreement with Roche for nephrology and transplant medications in India. M&A highlights include the full consolidation of Zuventus, the acquisition of the Manx portfolio in the U.K., and Cutimed in Canada.

The company's R&D investments stood at ₹383.5 crores in FY26, representing 4.2% of revenue. Notable pipeline advancements include the launch of Amphotericin B in select European markets in H2 FY26, with plans for global expansion in FY27. The ophthalmic biosimilar Bevacizumab received endorsement from CDSCO and is targeted for launch in H1 FY27. Emcure is also developing a long-term pipeline focusing on complex injectables, biosimilars, new delivery routes, and Antibody Drug Conjugates (ADCs), with both biosimilar and innovative ADC programs underway.

The domestic business grew by 10% in FY26 to ₹4,027 crores, primarily driven by women's health, cardiac, CNS, and oncology. However, Q4 FY26 saw a softer domestic growth of 5.2% due to restructuring and higher attrition within Zuventus following its minority stake acquisition. Management confirmed that integration and new leadership hires have addressed these issues, with April performance reportedly back on track. New therapy areas like derma, Emcutix, consumer health, and diabetes are scaling well, and Poviztra is showing promising early uptake.

International markets were a strong growth driver, with revenue increasing by 22.2% to ₹5,177 crores in FY26. Europe led this growth with a 25.5% increase to ₹1,850 crores, supported by base business and contributions from Manx and Amphotericin B. ROW markets grew 21.8% to ₹1,840 crores, and Canada achieved 18.7% growth to ₹1,487 crores, driven by market share gains and new launches. The company emphasized the importance of its non-ARV business for revenue diversification, while maintaining a robust ARV order book.

For FY27, Emcure projects low to mid-teen revenue growth and an EBITDA margin expansion of 75 to 100 basis points, assuming stable macroeconomic conditions. Key growth drivers include the domestic market, particularly Cardio-Diabeto, biologics, women's health, and new initiatives like semaglutide (Poviztra), Emcutix, and Arth. Continued growth is expected from Canada and Europe, with Amphotericin B anticipated to make a significant contribution from new registrations. The company also expects sustained growth in ROW markets from its non-ARV pipeline and strong ARV order book.

Net debt as of March 31, 2026, stood at ₹1,054 crores, primarily due to pay-outs for the Manx acquisition and Zuventus minority stake acquisition. The planned capital expenditure for FY27 is projected to be in the range of ₹400-425 crores. Management acknowledged the potential impact of geopolitical events on raw material prices, freight, and insurance costs, noting that while they have 1-2 quarters of inventory, they will monitor their ability to pass on these increased costs to customers.