Innova Captab Limited

Innova Captab delivered a strong financial performance for Q4 FY25 and the full fiscal year. For Q4 FY25, total revenue stood at INR314.7 crores, marking a robust 20% year-on-year growth. Full-year FY25 revenue reached INR1,243.7 crores, reflecting a 15% growth. The company's EBITDA for FY25 was INR198.2 crores, growing 19% YoY, with the EBITDA margin expanding by 50 basis points to 15.9%. Net Profit After Tax (PAT) for FY25 surged by 36% to INR128.3 crores, improving the PAT margin by 160 basis points to 10.3%.

A significant milestone for the quarter was the commercial production launch at the new Kathua, Jammu facility on January 14, 2025. This plant contributed INR36 crores to the revenue in Q4 FY25. Management expressed high confidence in the facility's potential, guiding for a revenue contribution of INR400 crores in FY26. This guidance includes an estimated GST benefit of INR30-35 crores. The Jammu plant is expected to become EBITDA neutral at a sales level of INR50-55 crores and will incur an annual depreciation of INR24-25 crores.

All business segments demonstrated strong growth. The CDMO business recorded a 12% YoY growth in Q4 and 6% for the full year, with FY25 revenue at INR659.9 crores. Domestic Branded Generic business showed stellar performance, growing 30% in Q4 and 21% for FY25, reaching INR230.7 crores, driven by expanded product portfolio and market penetration to over 220,000 pharmacies. International Business posted solid 47% YoY growth in Q4 and 25% for FY25, with revenue of INR156.3 crores, expanding presence to 30+ countries. Sharon Bio-Medicine closed FY25 with INR197 crores revenue, growing 15% in Q4, with strategic initiatives underway to leverage synergies and drive future growth in regulated markets.

The company's profitability saw significant improvement, with EBITDA growing faster than revenue. The EBITDA margin for FY25 increased by 50 basis points to 15.9%, and PAT margin improved by 160 basis points to 10.3%. This margin expansion was primarily attributed to enhanced operational efficiency, a favorable product mix, and optimal resource utilization. Management anticipates further margin improvement in coming years due to increased operations, operating leverage benefits, GST incentives from the Jammu plant, and new product introductions.

Innova Captab emphasized its commitment to innovation and R&D. The company's dedicated R&D laboratory and pilot scale manufacturing center in Baddi are recognized by DSIR. An upcoming facility in Panchkula, Chandigarh, will further strengthen R&D capabilities, focusing on developing complex generic and differentiated formulations. This strategic investment aims to enhance the innovation pipeline, support the expansion of the product portfolio, and enable the development of own IP products for regulated and semi-regulated markets, leveraging the manufacturing capabilities of both Baddi and Sharon.

The company noted an increase in working capital investment during the year. This was primarily due to the overall increase in operations and the initial working capital required to commence operations at the new Jammu plant. Management expressed optimism that working capital levels would normalize in the coming periods as the Jammu facility stabilizes and operations mature.