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Emcure Pharmaceuticals Limited — Q4 FY26 earnings call

Call held 5 May 2026

Management summary

Emcure Pharma delivered a strong FY26, exceeding revenue guidance with 16.6% growth to ₹9,204 crores and over 40% adjusted PAT growth. International markets were a key driver, while domestic growth in Q4 was softer due to Zuventus restructuring, which management expects to recover. The company outlined strategic partnerships, pipeline advancements, and provided positive guidance for FY27 revenue and EBITDA margin expansion, despite acknowledging potential geopolitical cost pressures.

Highlights

FY26 Revenue of ₹9,204 crores, up 16.6% YoY, exceeding guidance and surpassing $1 billion.
FY26 Adjusted PAT grew more than 40% to ₹1,008 crores, with adjusted PAT margins at 10.9%, up 189 basis points.
FY26 EBITDA margins improved 80 bps to 19.4%, reflecting improved utilization and productivity gains.
International markets revenue grew 22.2% to ₹5,177 crores in FY26, driven by strong performance across Europe, ROW, and Canada.
Successful strategic partnerships including exclusive India rights for Poviztra (semaglutide) with Novo Nordisk, expanded Sanofi partnership, and Roche distribution agreement.

Concerns

Domestic business grew softer at 5.2% in Q4 FY26 due to Zuventus portfolio and team reorganization, causing higher attrition.
Exceptional expense of ₹43 crores related to Mantra earn-out in Q4 FY26.
Potential impact of geopolitical events on raw material prices, freight, and insurance costs, though mitigated by inventory for 1-2 quarters.

Key financials

3 periods

Headline

Net Debt
₹1,054 Cr

Q4 FY26

Revenue
₹2,470 Cr
YoY +16.7%
EBITDA
₹485 Cr
YoY +24.5%
Adjusted PAT
₹279 Cr
YoY +36%

FY26

Revenue
₹9,204 Cr
YoY +16.6%
EBITDA
₹1,789 Cr
YoY +21.8%
EBITDA Margin
19.4%
Adjusted PAT
₹1,008 Cr
YoY +41%
R&D Spend
₹383.5 Cr

What they filed

Q1 FY27: revenue up 32.3%, net profit up 62.6% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	1,105	1,029	1,278	1,097	1,261 +14%	1,418 +38%	1,468 +15%	1,451 +32%
Expenses	947	904	1,034	869	1,036	1,118	1,096	1,111
EBITDA	158	124	245	228	225 +42%	300 +142%	372 +52%	340 +49%
Margin	14%	12%	19%	21%	18%	21%	25%	23%
Other income	49	19	22	18	23	109	35	25
Interest	31	20	24	21	28	33	37	33
Depreciation	56	57	57	60	62	62	63	63
Profit before tax	119	67	186	166	158 +33%	314 +369%	306 +65%	269 +62%
Tax rate	27%	25%	25%	26%	26%	18%	24%	26%
Net profit	87	50	140	123	118 +36%	259 +418%	234 +67%	200 +63%
EPS	4.60	2.65	7.37	6.48	6.20	13.65	12.33	10.55

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

Share of Revenue

₹14,381 Cr Total

International Markets (FY26) ₹5,177 Cr 36.0%
Domestic Business (FY26) ₹4,027 Cr 28.0%
Europe (FY26) ₹1,850 Cr 12.9%
ROW Markets (FY26) ₹1,840 Cr 12.8%
Canada (FY26) ₹1,487 Cr 10.3%

Capital allocation

high confidence

Capex ₹400 Cr

Yes. So I think we guide around that INR400 crores rough number. I think we'll broadly be in that range of INR400 - 425-ish crores.
Debt Net ₹1,054 Cr

Net debt as of March 31, 2026, stood at INR1,054 crores. The increase in debt over the last year has primarily been because of pay-outs for Manx and the Zuventus minority stake acquisition.
M&A Zuventus Acquisition · Integrated

Full consolidation and expected operational synergies
Minority stake buyout completed, leading to Q4 attrition and restructuring, but April performance is back on track.

As far as Zuventus is concerned, we completed minority stake buyout for full consolidation and expect operational synergies to play out over time.
M&A Manx portfolio Acquisition · Integrated

Grow U.K. business and the European business
Contributed to strong international growth.

Globally, we acquired the Manx portfolio in the U.K. to grow our U.K. business and the European business.
M&A Cutimed Acquisition · Integrated

Enhancing our derma range along with Emcutix

Cutimed, we recently acquired in Canada, enhancing our derma range along with Emcutix.
M&A Poviztra (Novo Nordisk) Joint venture · Signed

Exclusive India partner for patented rDNA biologic semaglutide
Promising early uptake, aiming for steady growth through FY27.

The first partnership I would like to highlight is with Novo Nordisk, and I'm very happy to inform my investors that Emcure was selected as the exclusive India partner for Poviztra, a patented rDNA biologic semaglutide.
M&A Amaryl & Cetapin (Sanofi) Joint venture · Signed

Expand partnership to include oral anti-diabetic brands, boosting position in cardiac and metabolic therapies
Strengthens position in metabolic space.

After Novo Nordisk, the second in-licensing that I would like to focus on is Sanofi. We expanded our partnership to include the oral anti-diabetic brands, Amaryl & Cetapin, boosting our position in cardiac and metabolic therapies.
M&A Roche (distribution agreement) Joint venture · Signed

Distribution agreement for select nephrology and transplant medication in India, widening offering in therapy
Augments strong position in nephrology.

The third partnership that has happened and we started billing from 1st of April was with Roche, where we signed a distribution agreement for select nephrology and transplant medication in India, which has widened our offering in the therapy.

Guidance & targets

Revenue

Revenue Growth Revenue · FY27 · Medium confidence low to mid-teen

In FY27, we project low to mid-teen revenue growth and as I have been explaining in the last meet and a few calls that I have had the privilege of addressing to you guys that EBITDA margin expansion will happen as committed between 75 to 100 basis points going forward, assuming stable regulations and macroeconomic conditions.

— Satish Mehta, Managing Director & CEO

Margin

EBITDA Margin Expansion Margin · FY27 · High confidence 75 to 100 basis points

In FY27, we project low to mid-teen revenue growth and as I have been explaining in the last meet and a few calls that I have had the privilege of addressing to you guys that EBITDA margin expansion will happen as committed between 75 to 100 basis points going forward, assuming stable regulations and macroeconomic conditions.

— Satish Mehta, Managing Director & CEO

Capex

Capex Capex · FY27 · High confidence ₹400-425 crores

Yes. So I think we guide around that INR400 crores rough number. I think we'll broadly be in that range of INR400 - 425-ish crores.

— Vikas Thapar

Domestic Market Growth

Industry Growth Domestic Market Growth · FY27 · Medium confidence 8-9%

I think we continue to expect industry growth to be around 8% to 9%, and for us, the target, is to grow faster than the industry - probably at low double-digits.

— Piyush Nahar
Emcure Domestic Growth Domestic Market Growth · FY27 · Medium confidence low double-digits

— Piyush Nahar

International Market Growth

Europe Growth (near-term) International Market Growth · Near term · Medium confidence stronger

In the near term, the growth, we do expect it to be stronger in Europe, especially as Amphotericin B gets launched.

— Piyush Nahar
Europe Growth (2-year CAGR) International Market Growth · Next 2 years · Medium confidence mid-teens

But yes, once it reaches the scale, so I think over the next 2 years, we do still expect mid-teens growth in the Europe business as a CAGR.

— Piyush Nahar

Operating Expenses

Employee Expenses Growth Operating Expenses · Next year · High confidence around 10%

Yes, we expect it to be around 10% next year.

— Tajuddin Shaikh

New Product Revenue

Roche Nephro Brands Annualized Revenue New Product Revenue · Annualized · High confidence less than ₹50 crores

So, there's no upfront payment that we have made for this similar to all the other in-licensing we have done. The portfolio is 2-3 key brands, so it will be less than INR50 crores annualized.

— Piyush Nahar

What to watch in Q1 FY27

Zuventus domestic business growth

Next quarter (Q1 FY27)

Current Soft growth in Q4 FY26 due to restructuring

Target Back on track, growing faster than industry (low double-digits)

Why it matters

Key to overall domestic performance recovery and validation of restructuring efforts.

As you know that we acquired the minority stake in Zuventus, so there was attrition, but integration and new leadership hires have addressed these issues and I'm very happy to say that as far as April is concerned, it's absolutely as per the plan. It is on track. So, nothing to really worry as far as Zuventus is concerned going forward.

Risks & concerns

Zuventus portfolio and team reorganization leading to softer domestic growth and higher attrition
medium

Domestic business grew softer at 5.2% in Q4 FY26 due to restructuring and attrition at Zuventus, but management expects recovery in Q1 FY27.

Management acknowledged
Geopolitical events impacting raw material prices, freight, and insurance costs
medium

Rising costs due to geopolitical events, with 1-2 quarters of inventory providing a buffer, and management will assess ability to pass on costs.

Both acknowledged
Increased competition in biosimilar space due to reduced FDA R&D requirements
medium

FDA's reduced R&D requirements for biosimilars could make the space more lucrative for new entrants, potentially increasing competition.

Both acknowledged

Q&A highlights

5 direct

Impact of Zuventus restructuring on India business growth Direct

So, I think what happened along with the minority stake, we also had was a big change in the management team, right? So, Mr. Guha had been leading that business since the inception, he stepped down and we had a new team coming in. I think when the new management came in, we also had a relook at the whole portfolio, the team structure that we had... That is what we took over in Q4.

Explains the Q4 domestic growth slowdown, attributing it to a one-time restructuring and attrition at Zuventus post-acquisition, with management stating April is back on track.

Asked by Amey Chalke

Zuventus operational synergies and field force restructuring Partial

I think the synergies are going to be more in terms of how we are organized on the sales and marketing efforts... about 40% of the field force is in Zuventus for us... the attrition normally, is about 20% to 30%. This quarter, we had a much higher attrition out there.

Clarifies that synergies are primarily in sales and marketing, not manufacturing, and that the restructuring involved about 40% of the total MR count, with higher attrition, but expects recovery.

Asked by Amey Chalke

Semaglutide (Poviztra) market share and pricing post-generics Direct

But certainly, we wanted to be aggressive in terms of the post generic entry in terms of offering a very robust price point while still offering the innovator brand. And so we are starting to see some green shoots of that as well.

Addresses concerns about competition and pricing pressure for their key product, indicating promising early uptake after a price cut and emphasizing its rDNA biologic nature.

Asked by Sidharth Negandhi

R&D pipeline for Antibody Drug Conjugates (ADC) and commercialization timeline Partial

So there are two parts to the ADC program. One will be a biosimilar ADC and the other will have some element of innovation in it, especially the linker around which we have our own IP... So the biosimilar ADC should have a shorter approval pathway. And the innovative ADC, of course, will be slightly longer, but we are seeing some encouraging results in terms of identifying some potential lead candidates.

Provides details on their ADC strategy, distinguishing between biosimilar and innovative ADCs, but defers specific commercialization timelines due to evolving regulatory landscape.

Asked by Foram Parekh

Geopolitical events impact on raw material prices and supply chain Direct

One is, I think given the nature of the business and especially some of the markets we are in, for most of the markets, we do have between one to two quarters of inventory. So at least for the next one or two quarters, we don't see much of an impact coming through. I think post that, we'll have to see if this price elevation last across raw material and how much we can pass it on to the customer side.

Acknowledges the risk of rising raw material, freight, and insurance costs due to geopolitical events, but states they have 1-2 quarters of inventory and will assess pass-through ability.

Asked by Kunal Randeria

Semaglutide launch strategy in Canada Direct

So in fact, in Canada, as you know, both Apotex and Reddy's did get the approval very recently. You'll be happy to know that our Mantra subsidiary in Quebec has partnered with Dr. Reddy's and we'll be launching the product hopefully sometime in Q2 and then ramp up from there. We are obviously filing our own product in Canada as well for addressing, I think, the more midterm opportunity throughout Canada.

Details their Canadian semaglutide strategy, including a partnership with Dr. Reddy's for an early launch in Quebec and their own filing for broader market access, indicating a nuanced approach to a competitive market.

Asked by Kunal Randeria

Impact of FDA reducing R&D requirements for biosimilars Direct

Yes. I think many companies will now find it a little more lucrative to enter the biosimilar space because like I was previously mentioned, Phase III, which is essentially an efficacy study for a lot of biosimilars, could possibly be waived off... So once that goes away and we see more approvals coming through... then definitely, the biosimilar space will heat up a little more.

Discusses a significant regulatory change that could intensify competition in the biosimilar space but asserts Emcure's existing expertise provides a competitive advantage.

Asked by Avnish Burman

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Detailed narrative

FY26 Performance Overview and Strategic Achievements

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.

Strategic Partnerships and Portfolio Expansion

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.

R&D and Pipeline Updates

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.

Domestic Business Performance and Zuventus Restructuring

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 Business Performance

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.

Outlook and Growth Levers for FY27

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.

Capital Allocation and Geopolitical Risks

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.

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

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