Gufic Biosciences Q4 FY26 earnings call

Gufic BioScience delivered its strongest quarter ever in Q4 FY26, with revenue reaching INR 252 crores, a 22.92% YoY increase. EBITDA for the quarter stood at INR 44.7 crores, up 65.56% YoY, with margins expanding to 17.73% from 13.17% in Q4 FY25. PAT more than doubled to INR 20.5 crores, a 156.25% YoY growth. For the full year FY26, revenue was INR 940.50 crores, a 14.69% YoY increase, while PAT saw a decline of 9.58% to INR 63.2 crores from INR 69.9 crores in FY25, and EBITDA margin slightly compressed to 16.26% from 16.91% in FY25.

The Indore facility achieved its target of 30% capacity utilization by year-end and reached EBITDA breakeven in Q4 FY26. The qualification, tech transfer, and validation batch phases are now complete, with 40 product tech transfers done and 27 under development. The EU GMP audit was completed in December 2025, and the certificate is pending, which will open multiple EU markets. The international business recorded its highest-ever growth in FY26, driven by a strategic shift from a distributor-led model to one where Gufic holds marketing authorizations, enabling direct supply, out-licensing, and tech transfer fees.

The domestic business experienced two distinct journeys in FY26. A working capital reset in the Critical Care cluster involved shifting from direct hospital billing to a CFA-led stockist-driven distribution, which caused a short-term revenue impact of INR 22 crores across Q2-Q4. This transition aimed to address outstanding receivables (140-150 days plus) and move credit risk, with collections now essentially complete. Parallel to this, other domestic segments like women's health, fertility, and botulinum toxin showed genuine growth.

The women's health platform, encompassing fertility and gynecology, had its strongest year, with the reproductive immunology franchise achieving category leadership. The company formally signed an in-licensing agreement with a leading Canadian aesthetics company for fillers and biostimulators, addressing a key gap in its portfolio. Launch preparations for this product are underway for Q3/Q4 of the current financial year, with no capex involved as the product will be imported. The botulinum toxin business is now the number 2 brand in India, holding approximately 23% market share.

The company's gross debt stands at INR 400 crores, which management expects to maintain at this level, serving as the 'top test loan'. Working capital loans carry an interest rate of 8.2%, while term loans are at 8%. Cash and cash equivalents were INR 75 crores as of March 2026. For capex, the company anticipates an annual replacement capex of around INR 20 crores, but no new greenfield capex is planned for the next two years, as prior investments are now expected to yield benefits.

Management guided for a 15% year-over-year revenue growth and a 0.5% to 1% annual improvement in gross margins. The EBITDA margin for FY27 is targeted at around 18%, with a long-term goal of exceeding 20% by 2030. The Navsari facility's EBITDA margin is expected to remain around 18-18.5%, while Indore's EBITDA margin is projected at 31-32%, leading to an overall Indore EBITDA margin of 20%. R&D spend is expected to be 8-10% of top-line revenue annually, supporting IP creation and backward integration.

Gufic is focusing on backward integration for APIs, particularly for peptides and anti-infectives, to reduce dependence on external suppliers and improve control over business and supply stability. The company aims to increase in-house API production from 35% to 50% eventually, moving from importing higher key starting materials to manufacturing locally. This strategy is expected to lead to margin expansion and greater independence, especially for complex injectable molecules and future peptides for aesthetics.