Gufic Biosciences Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

Gufic Biosciences reported a strong Q2 FY26 with modest revenue growth but significant margin expansion, primarily driven by the Indore plant's commercialization and increased international business. The company is focused on scaling its complex injectable portfolio, expanding regulatory reach, and optimizing capacity utilization at the new Indore facility. While domestic critical care faced pricing erosion, specialty segments like infertility and botulin toxin showed robust growth.

Highlights

  • Total revenue for Q2 FY26 was ₹230 crores, a 1.3% QoQ increase from ₹227 crores in Q1 FY26.

  • EBITDA for Q2 FY26 increased to ₹37.9 crores from ₹33.2 crores in Q1 FY26, a 14.16% QoQ growth.

  • EBITDA margin improved to 16.45% in Q2 FY26 from 14.63% in Q1 FY26.

  • Profit Before Tax (PBT) rose to ₹20.5 crores in Q2 FY26 from ₹16.3 crores in Q1 FY26, a 25.77% QoQ increase.

  • PBT margin improved to 8.9% in Q2 FY26 from 7.18% in Q1 FY26.

  • Profit After Tax (PAT) for Q2 FY26 was ₹14.9 crores, up 23.14% QoQ from ₹12.1 crores in Q1 FY26.

  • PAT margin improved to 6.47% in Q2 FY26 from 5.32% in Q1 FY26.

  • International business grew by 32-33% QoQ, driven by new market openings and tenders.

Key financials

  1. Revenue ₹230 Cr +1.3%QoQ
  2. EBITDA ₹37.9 Cr +14.2%QoQ
  3. EBITDA Margin 16.4%
  4. PBT ₹20.5 Cr +25.8%QoQ
  5. PBT Margin 8.9%
  6. PAT ₹14.9 Cr +23.1%QoQ
  7. PAT Margin 6.5%

What they filed

Q1 FY27: revenue up 15.0%, net profit up 83.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue204 208 205 227 230 +13%231 +11%252 +23%261 +15%
EBITDA39 34 27 32 36 −8%36 +6%46 +70%47 +47%
Net profit22 19 8 12 15 −32%16 −16%21 +163%22 +83%
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

  • International Business
    32% Growth
  • Ferticare (Infertility)
    18% Growth₹25 Cr Annual Run Rate (Puregraf)₹15 Cr Annual Run Rate (Supergraf)₹10 Cr Annual Run Rate (Guficin Alpha)
  • Critical Care & Sparsh (Domestic)
    8% Value Growth4% Net Growth (after erosion)
  • Healthcare Business & Zenova
    10% Growth Trajectory
  • Botulin Toxin (Neuro & Aesthetic)
    22% Growth

Guidance & targets

Profitability

  • Indore Plant EBITDA Break-even Profitability · Q4 FY26 · High confidence Break-even
    Yes. In Q4, we are expecting the EBITDA break-even is going to come.

    — Devkinandan Roonghta, Chief Financial Officer

  • Indore Plant Margin Accretive Profitability · FY27 onwards · High confidence Margin Accretive
    Operationally, the plant is on track to achieve its utilization and EBITDA target for FY'26 and we maintain our guidance of Indore becoming margin accretive by FY'27 onwards.

    — Avik Das, Investor Relations

  • Meropenem Bag Premium Profitability · High confidence 15%
    Meropenem bag, which we have always wanted to have a 30% premium, we finally got a 15% premium allowed by the government.

    — Pranav Choksi, CEO & Whole-Time Director

  • Gross Margin Profitability · after 2-3 years · Medium confidence at least 20%

    From 18-19% today

    If you see the past history of Gufic, from last 2 years, the gross-margin is between 18%-19% and after 2-3 years, after Indore, I feel that the cross-margin should at least be at 20%.

    — Devkinandan Roonghta, Chief Financial Officer

  • Gross Margin (with increased international sale ratio) Profitability · Low confidence 21-22%
    If it is touched to 30%-35%, then the gross-margin may touch to 21%-22%. EBITDA margin will.

    — Devkinandan Roonghta, Chief Financial Officer

Regulatory Approvals

  • Indore Plant EU GMP and UK MHRA Approval Regulatory Approvals · Q1 FY27 · High confidence Approval
    Our global audit timelines remain unchanged with EU GMP and UK MHRA targeted for latest by Q1 of FY'27 and the US FDA milestone to follow client-triggered timelines thereafter.

    — Avik Das, Investor Relations

Revenue

  • CMO Business Revenue Contribution Revenue · Q4 FY26 or Q1 FY27 · Medium confidence Full revenue captured
    But we hope that the CMO business also would start picking up from Q3 onwards and we would see a whole some, I would say, revenue to be captured hopefully by Q4 or maximum by Q1 2027.

    — Pranav Choksi, CEO & Whole-Time Director

  • Indore Plant Topline at 70-80% Capacity Utilization Revenue · High confidence ₹750-800 crores
    But we are expecting that the topline will be in the range of 750 crores-800 crores at 70%-80% capacity utilization.

    — Devkinandan Roonghta, Chief Financial Officer

  • Ferticare (combined Ferticare & Fertimax) Revenue Revenue · this year · High confidence ₹100+ crores
    these two would combine to cross close to 100 or more than 100 this year again

    — Pranav Choksi, CEO & Whole-Time Director

  • Botulin Toxin India Market Revenue Target Revenue · Medium confidence ₹100 crore level
    if you focus on India, get it to Rs. 100 crore level business as Gufic as such

    — Pranav Choksi, CEO & Whole-Time Director

Capex

  • Total CAPEX for Indore Capex · High confidence ₹350-355 crores
    The total CAPEX for Indore, including the interest capitalization, everything is around 350 crores-355 crores.

    — Devkinandan Roonghta, Chief Financial Officer

Debt

  • Borrowing Reduction Debt · after 2 years · High confidence ₹300-350 crores

    From ₹350-360 crores today

    And the loan should come down to from 350 to 300 after 2 years.

    — Devkinandan Roonghta, Chief Financial Officer

Revenue Growth

  • Ferticare (Infertility) Division Growth Revenue Growth · year-over-year · Medium confidence 15-20%
    we hope that that journey would be around 15% to 20% year-over-year.

    — Pranav Choksi, CEO & Whole-Time Director

  • International Business Growth Revenue Growth · year on year · Medium confidence 15-20%
    But overall, we hope that the focus of a jump of 20% year on year or 15%-20% year on year should continue

    — Pranav Choksi, CEO & Whole-Time Director

  • Critical Care Growth (with erosion) Revenue Growth · going forward · Medium confidence 8-10%
    we hope that in Critical Care with the erosion, 8% to 10% should be the way going forward.

    — Pranav Choksi, CEO & Whole-Time Director

Capacity Utilization

  • Indore CMO Client Onboarding Capacity Utilization · by Q3 FY26 · Medium confidence 50% of 12-14 major clients
    Out of the 12 to 14, we can assume that 50% should be on boarded there by Q3.

    — Pranav Choksi, CEO & Whole-Time Director

Product Launch

  • New CMO Product Lines (vials & ampoules) Product Launch · Q4 FY26 and Q1 FY27 · Medium confidence Kicking in
    So, those also should start kicking in from Q4 and Q1 next year.

    — Pranav Choksi, CEO & Whole-Time Director

Risks & concerns

  • API price downward strength and pricing erosion in Critical Care/Sparsh

    medium

    Net growth in Critical Care and Sparsh is 4-6% despite higher unit growth due to price erosion, impacting topline.

    Management acknowledged

  • CMO business suffering due to capacity prioritization for exports

    medium

    CMO business has suffered in the first six months as capacity was focused on exports, with a shift to Indore being a long process due to audits and validation.

    Management acknowledged

  • Transition risk for CMO clients shifting to Indore facility

    medium

    Clients build up 3 months of inventory from Navsari before shifting to Indore to manage transition risks and troubleshooting, impacting immediate revenue ramp-up from Indore.

    Management acknowledged

  • High upfront costs and bandwidth requirements for international expansion of Botulin Toxin

    medium

    Entering international markets for botulin toxin requires significant upfront investment for regulatory processes, clinical data generation, and building dedicated bandwidth, leading to a delayed international push for this product.

    Management acknowledged

Q&A highlights

2 direct
Disclosure of SBU-wise numerical data Direct
And I think you're right. I think mostly we discuss it during the investor call, but if it's in the form of a PowerPoint representation, it will really be able to track that on a Q2Q basis. Fine. So, I really got that message. So, I will ask my team also to work on that.

Analyst requested more granular financial data by Strategic Business Unit (SBU) for better tracking, and management agreed to implement this, indicating improved future transparency.

Asked by Nitin Gosar, Bank of India Mutual Fund

Licensing of Stunnox (Botulin Toxin) with US brands Partial
So, I think that was around two quarters ago. Last quarter, already, I also clarified that we had received a commercial offer, which we found not worth pursuing in terms of the bandwidth, which we had to employ in terms of setting up a separate entity only for the regulated markets. So, talks are still on. But like I said, for us, the priority right now would be to completely scale up Indore.

Management clarified that while talks for Stunnox licensing with US brands are ongoing, a previous commercial offer was not pursued due to bandwidth and capital investment priorities, indicating a strategic focus on scaling existing assets like the Indore plant first.

Asked by Bhavya Sonawala, Samaasa Capital

Strategy for Biosimilars/Biologics and entering the value chain Direct
But in terms of monoclonal antibodies, I think we would not be going into because that's not our core competency plus all other companies already have a better lead than us and we are too late. I mean, very frankly, first of all, we don't have our basic therapeutic prowess there and I think even if you want to get into there, there are better people than us who are doing it and the pricing and the lead they have, I think, will be not economically viable for me to get into the monoclonal antibodies.

Management clearly articulated their strategic decision to not pursue monoclonal antibodies due to lack of core competency, existing competition, and economic viability, while confirming work on recombinant products and botulin toxin, providing clarity on their long-term pipeline focus.

Asked by Aditya Pal, MSA Capital Partners

2 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance and Margin Expansion

Gufic Biosciences reported a modest 1.3% sequential revenue growth to ₹230 crores in Q2 FY26. However, profitability saw significant improvement, with EBITDA increasing by 14.16% QoQ to ₹37.9 crores, and EBITDA margin expanding to 16.45% from 14.63%. PAT also grew by 23.14% QoQ to ₹14.9 crores, with PAT margin reaching 6.47%. This margin expansion was attributed to a higher contribution from the international business and improved sales mix.

Indore Facility Scale-up and Outlook

The Indore plant, which began commercial invoicing in October 2024 (Q1 FY26), is progressing as per plan, with 40 products having completed tech transfers and an additional 27 under development. Management expects the facility to achieve EBITDA break-even by Q4 FY26 and become margin accretive by FY27 onwards. The total CAPEX for Indore is around ₹350-355 crores, with a projected topline of ₹750-800 crores at 70-80% capacity utilization. EU GMP and UK MHRA approvals are targeted for Q1 FY27.

Domestic Business Segment Performance

The domestic business showed mixed performance. The infertility division (Ferticare) is a key growth driver, with Puregraf trending towards a ₹25 crore annual run rate and Supergraf towards ₹15 crore. Critical Care and Sparsh segments are growing at 8-10% in value, but net growth is 4-6% due to API price erosion. The healthcare business and Zenova are on a 10-15% growth trajectory. The Botulin Toxin business (Neuro & Aesthetic) is growing robustly at 22%.

International Business Expansion and Strategy

The international business demonstrated strong growth of 32-33% QoQ, driven by new market entries in regions like Canada, South Africa, and Brazil. Gufic Ireland secured its first marketing authorization in the EU, establishing a platform for future filings. The company received 24 key product and facility approvals across regulated and emerging markets. The strategy involves a disciplined, compliance-led approach to scale its complex injectable portfolio internationally, targeting 15-20% year-on-year growth.

Toxin Platform (Aesthaderm & Neurocare) Strategy

The Aesthaderm platform is expanding from toxins into a fuller aesthetic ecosystem, including fillers and bio-stimulators, with in-licensing for global quality products underway. Neurocare, the therapeutic toxin, focuses on creating new injectors and expanding indications. Management noted the Indian toxin market is small (₹18-20 million) but aims for a ₹100 crore business level, while acknowledging high upfront costs for international regulatory and clinical data for global expansion.

Capital Allocation and Debt Management

The company has no major CAPEX plans for the next two years. Current borrowing, including working capital and term loans, stands at ₹350-360 crores. Management expects this to reduce to ₹300-350 crores within two years, with additional working capital requirements for the Indore plant to be met through internal revenue generation. This indicates a focus on deleveraging and internal funding for growth.

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