Innova Captab delivered a stellar Q3 FY26, driven by strong performance across both CDMO and branded generics segments. The company reported significant revenue and profitability growth, supported by strategic focus and operational discipline. The new Jammu facility is ramping up smoothly, contributing substantially to revenue and is expected to turn profitable at the EBITDA level in the next fiscal year.
vs Q4 FY26
Notable Quotes from the Call
Most Confident Moment
we are very much sure that in the next year, as Vinay sir also submitted, that in the next year, we are very much looking ahead to get a positive contribution from Jammu facility from both EBITDA as well as PAT level.
Least Confident Moment
prediction about the future is still uncertain. We cannot say what will happen in the future. (regarding API prices)
| Metric | Value | YoY |
|---|---|---|
| Revenue | ₹450.3 Cr | +42.3% YoY |
| EBITDA | ₹71.1 Cr | +39.6% YoY |
| EBITDA Margin | 15.8% | — |
| PAT | ₹42.1 Cr | — |
Segment Breakdown
Share of Revenue (Q3 FY26)
| Metric | Latest | Trend |
|---|---|---|
| Revenue(crores) | 450.3 | |
| EBITDA Margin | 15.8% | |
| PAT(crores) | 42.1 | |
| PAT Margin | 8% | |
| Q4 EBITDA(crores) | 66.7 | |
| Q4 EBITDA Margin | 14.9% |
| Category | Target | Priority |
|---|---|---|
| Revenue | Overall Revenue Growth→20%+ | High |
| Revenue | Jammu Facility Revenue→₹270-280 crores | Medium |
| Capacity | Jammu Facility Revenue Potential at Optimum Capacity→₹1,400 crores+ | High |
| Capacity | Existing Manufacturing Capabilities Growth Potential→15% to 25% | Medium |
| Margin | EBITDA Margin Profile→15% (+/- 2%) | Medium |
| Market Share | Export vs Domestic Mix→35-65% | High |
| Severity | Risk |
|---|---|
medium | API Price Volatility API prices are stable quarter-on-quarter but future trends are uncertain, and there has been a negative impact year-on-year. Management |
low | P&L Pressure from Future Growth Strategies While Jammu will contribute positively, future growth engines might put negative pressure on the P&L as businesses cannot be set silently. Management |
low | Increasing Competition in CDMO Analyst raised concern about increasing competition in CDMO, but management stated India is a huge market with space for all to grow. Analyst |
Areas of Evasion(2)
Innova Captab reported a stellar Q3 FY26, with revenue from operations surging to ₹450.3 crores, a 42.3% year-on-year growth. For the nine months ended December 2025, revenue reached ₹1,182.2 crores, up 27.3% YoY. Profitability also advanced, with EBITDA climbing to ₹71.1 crores in Q3 FY26 (up 39.6% YoY) and maintaining margins at 15.8% for the quarter and 15.5% for 9M FY26. PAT for Q3 FY26 stood at ₹42.1 crores.
Both core business verticals demonstrated strong growth. The CDMO business generated ₹298.7 crores in Q3 FY26, an increase of 29% YoY, fueled by deeper client partnerships and new wins. For 9M FY26, CDMO revenue totaled ₹813.9 crores, growing 18% YoY. Branded generics showed even more aggressive growth, surging 79% YoY to ₹151.6 crores in Q3 FY26 and 56% YoY to ₹368.4 crores for 9M FY26, driven by geographic expansion and intensified market penetration.
The new Jammu facility contributed approximately ₹89 crores to Q3 FY26 revenue, an increase from ₹60 crores in the previous quarter. Management stated that the facility is nearing break-even at the EBITDA level and is expected to make a positive contribution to both EBITDA and PAT in the next fiscal year. At optimum capacity (65-75% utilization), Jammu has the potential to generate over ₹1,400 crores in revenue.
Existing manufacturing facilities in Baddi, Dehradun, and Taloja are operating at a capacity utilization of 55% to 60%. These facilities still hold a growth potential of 15% to 25%. The company is focused on capacity expansion and geographical diversification to ensure sustained revenue acceleration and profitability gains, with the Jammu facility being a key part of this strategy.
Management noted that API prices have stabilized quarter-on-quarter, though year-on-year there has been a negative impact, and future trends remain uncertain. Exports formed a healthy 35% of Q3 FY26 revenue mix and 32% for 9M FY26, underscoring strategic progress in global markets. The long-term target for the export-to-domestic revenue mix is maintained at a 35-65% ratio.
Innova Captab is targeting an overall business growth of 20% plus for FY27. The company emphasizes its focus on innovation and research, driven by a dedicated R&D centre, to meet the needs of the changing pharmaceutical environment. Management also highlighted the importance of disciplined execution and operational efficiency to deliver sustainable margins amidst robust growth.