Sakar Healthcare Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Sakar Healthcare reported a strong Q3 FY26, with revenue growing 62% YoY to INR 7,034 lakhs and PAT surging 126% YoY to INR 1,025 lakhs, primarily driven by its oncology vertical. The company's EU GMP-approved oncology facility is now a manufacturing source for the EU, with 11 marketing authorizations secured and 10 molecules in various stages of technical transfer. Management expects this momentum to continue, projecting 60-70% YoY growth for oncology in FY27, while maintaining a controlled capex and stable tax rate due to MAT credit.

Highlights

  • Revenue from operations for Q3 FY26 increased by 62% YoY to INR 7,034 lakhs, demonstrating robust growth.

  • Profit After Tax (PAT) for Q3 FY26 surged by 126% YoY to INR 1,025 lakhs, driven by operating leverage and better product mix.

  • The EU GMP approved oncology facility at Bavla has gained significant strategic relevance, with 11 marketing authorizations already received across Europe and emerging markets.

  • The company has 10 molecules in the tech transfer process, with Imatinib and another product already approved, and 2 more expected within two months, indicating a strong pipeline.

  • Management projects a 60-70% year-on-year growth for the oncology business in FY27, targeting an EBITDA margin of around 30% for the segment.

Concerns

  • There was a discrepancy in the reported breakdown of 9M oncology sales, where the sum of exports (INR 30.81 crores) and domestic sales (INR 8.62 crores) did not match the stated total oncology turnover (INR 69.45 crores).

  • Conflicting statements were made regarding employee costs, with an analyst noting an increase from INR 8.3 crores to INR 9.9 crores, while management stated Q3 costs were around INR 8 crores and then mentioned INR 9.5 crores for Q3/Q4, indicating some lack of clarity.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹7,034 lakh
    YoY +62%
  • EBITDA
    ₹1,859 lakh
    YoY +58%
  • EBITDA Margin
    26%
  • PAT
    ₹1,025 lakh
    YoY +126%
  • Gross Margins
    49%

9M

  • Revenue
    ₹18,064 lakh
    YoY +42%
  • EBITDA
    ₹4,265 lakh
    YoY +26%
  • PAT
    ₹1,946 lakh
    YoY +66%

What they filed

Q1 FY27: revenue up 37.7%, net profit up 100.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue43 43 50 53 58 +35%70 +63%71 +42%73 +38%
EBITDA12 12 16 13 11 −8%19 +58%26 +63%21 +62%
Net profit5 5 6 5 5 +0%10 +100%11 +83%10 +100%
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 Total Turnover
₹100.45 Cr Total
  • Oncology (9M FY26) ₹69.45 Cr 69.1%
  • Oncology (Q3 FY26) ₹31 Cr 30.9%

Capital allocation

high confidence
  • Capex ₹9 Cr
    • Plant and machineries setup/upgrades ₹9 Cr
    So the balance capex, the INR9 crores capex that has happened in the last quarter is towards the plant and machineries that has been setup as per the revised requirements or the up-gradations of the capacities. So that has gone towards the plant and machinery setups and the utilities.

Guidance & targets

Revenue

  • FY26 Revenue Growth Revenue · FY26 · High confidence 40%+
    Yes, we are very much on the track. And presently the order book is showing that we'll be landing something around 30% plus, sorry, 40% plus growth over last year, the total figure.

    — Bikramjit Ghosh

  • Oncology Revenue Growth Revenue · FY27 · High confidence 60-70%
    So what we are seeing, it is more than around 60% plus growth, what we can expect, maybe year-on-year basis... average what we can look forward to is around 60% to 70% growth year-on-year.

    — Bikramjit Ghosh

Profitability

  • Oncology EBITDA Margin Profitability · Long-term · Medium confidence 30%
    So when we had conceptualized oncology, so we were expecting an EBITDA margin somewhere around 30%. So that is the target we would be trying to achieve.

    — Dharmesh Thaker

Tax Rate

  • Effective Tax Rate Tax Rate · FY26/FY27 · High confidence 18-19%
    In lines yes, almost in lines with FY'25 around 18% to 19% yes.

    — Dharmesh Thaker

  • Effective Tax Rate Tax Rate · Post-FY27 · High confidence 25-26%
    Yes, around 25%.

    — Dharmesh Thaker

Product Pipeline

  • Tech Transfer Products Commercialization Product Pipeline · Next financial year (FY27) · Medium confidence All 10 products
    And what we can foresee, it will come within the first or maximum second quarter of next financial year. So the commercials are expected from this products for all the products -- almost all the products by next year, next financial year.

    — Bikramjit Ghosh

What to watch in Q4 FY26

Commercialization of EU-approved products (first dispatches)

Q1 FY27
Current Orders received, manufacturing scheduled, dispatch in May or April 2026.
Target Actual dispatch and revenue recognition from initial EU supplies.

Why it matters

Verifies the start of commercialization for key EU market entries, which is a major milestone for the company's global expansion strategy.

So we have already received the orders, POs, and currently the manufacturing has been scheduled. And we'll be maybe dispatching either in May or maybe in April, depending upon the whether the setup is ready for us.

Risks & concerns

  • Regulatory approvals and timelines for new products

    medium

    The company has 100+ MA submissions and 200 dossiers with partners, but the timing of approvals and 'getting a slot' for MA in Europe can be a challenge, as certain things are not in management's hand.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Oncology Revenue Breakdown (Q3 & 9M FY26) Direct
So the Q3 turnover for the oncology business in all was INR31 crores, out of which INR19 crores was exports and majority is of it was towards the EU. And the domestic was around INR12 crores. And if I say for the nine months, for the nine months the turnover for the oncology business has been INR69 crores – INR69.45 crores, of which INR30.81 crores is exports and rest INR8.62 crores is the domestic sales.

Provides specific segment revenue breakdown for the oncology business, highlighting export vs. domestic contribution.

Asked by Ankit Gupta

Imatinib Market Opportunity and Tech Transfer Pipeline Direct
So and I think Imatinib itself is a $200-$250 million kind of opportunity in the European market... There are ten molecules which are in the process of tech transfer, out of which just to add on we have already received for Imatinib. The second product has also been received for that, and we are expecting to receive another two within a couple of months' time.

Quantifies the market potential for a key product (Imatinib) and details the progress and timeline for the tech transfer pipeline, which is crucial for future revenue.

Asked by Ankit Gupta

Employee Cost Volatility Evasive
So if we see it on quarter-to-quarter thing, compared to Q2 and Q3, the employee cost in value terms remains the same. At around, employee cost has been at around INR8 crores in Q3, and now it has come down, it has come to in Q2, and which is now around INR9.5 crores in Q4, Q3 rather. So this is more towards stabilizing...

Highlights a lack of clarity or conflicting information regarding employee costs, which could impact operating expenses and was noted as a sequential increase by the analyst.

Asked by Avinish Burman

Oncology Revenue Growth Outlook Direct
So what we are seeing, it is more than around 60% plus growth, what we can expect, maybe year-on-year basis. And thereby the quarter-on-quarter maybe initially you can see a major growth, but average what we can look forward to is around 60% to 70% growth year-on-year.

Provides specific forward guidance on the growth trajectory of the key oncology segment for the next financial year.

Asked by Avinish Burman

FY26 Revenue Guidance and Q4 Target Direct
Yes, we are very much on the track. And presently the order book is showing that we'll be landing something around 30% plus, sorry, 40% plus growth over last year, the total figure. That is what the order book is currently showing. And it can be added up with other orders as well with the current promising growth that oncology is showing.

Reaffirms the company's confidence in achieving its FY26 revenue target, indicating strong order visibility and growth.

Asked by Hitaindra Pradhan

Tax Rate Trajectory Direct
So as regards this, the MAT credit that is available at this point in time, due to which the taxes are getting knocked off against the MAT credit. So whatever the provision you are seeing, that is more towards the deferred tax provisions. And probably after the end of FY'27, we would be coming into the normal tax slabs.

Explains the current lower tax rate due to MAT credit and provides a clear timeline for when the company expects to return to normal tax rates, impacting future profitability.

Asked by Saurabh Gupta

Commercialization Timeline for EU Approvals Direct
So we have already received the orders, POs, and currently the manufacturing has been scheduled. And we'll be maybe dispatching either in May or maybe in April, depending upon the whether the setup is ready for us. And this is for the first time as I told you because there is a normally a threshold of 90 days to 150 days for the supply.

Clarifies the initial commercialization timeline for newly approved EU products, indicating a ramp-up period before full-scale supply.

Asked by Saurabh Gupta

EBITDA Margin Target for Oncology Direct
A precise number would be difficult at this point in time, but yes, the margins would be way better compared to the margins that we have right now. So when we had conceptualized oncology, so we were expecting an EBITDA margin somewhere around 30%. So that is the target we would be trying to achieve.

Sets a clear long-term EBITDA margin target for the high-growth oncology segment, indicating potential for future profitability expansion.

Asked by Ankit Gupta

2 min read 5 chapters

Detailed narrative

Robust Financial Performance Driven by Oncology

Sakar Healthcare delivered strong financial results for Q3 FY26, with revenue from operations growing 62% year-on-year to INR 7,034 lakhs. Profit After Tax (PAT) saw an even more significant increase of 126% year-on-year, reaching INR 1,025 lakhs. This performance was largely attributed to the oncology vertical, which contributed INR 31 crores in Q3. For the nine months ended December 31, 2025, revenue stood at INR 18,064 lakhs, a 42% YoY increase, with PAT growing 66% to INR 1,946 lakhs.

Strategic Expansion in European Oncology Market

The company's EU GMP-approved oncology facility at Bavla is now a key manufacturing source for the EU, enhancing its global strategic relevance. Sakar Healthcare has already secured 11 marketing authorizations across Europe and emerging markets, with 10 molecules currently undergoing technical transfer. Management highlighted Imatinib as a significant product with a European market opportunity of $200-$250 million, expecting commercialization of these tech-transferred products to commence from Q1 FY27.

Strong Product Pipeline and Dossier Progress

Sakar Healthcare continues to advance its product pipeline, with 211 oncology dossiers shared globally and 102 already submitted across partner markets. Out of 32 developed oncology dossiers, 21 have been submitted, and 11 have received marketing authorizations. The R&D teams are focused on developing non-infringing patent formulations and differentiated oncology products, which are expected to bolster future revenue streams and support high-margin growth.

Optimistic Growth Outlook and Margin Targets

Management expressed high confidence in sustaining growth, projecting a 40%+ year-on-year revenue growth for FY26. Specifically for the oncology segment, a robust 60-70% year-on-year growth is anticipated for FY27. The company aims to achieve an EBITDA margin of approximately 30% for its oncology business, up from the current 26% reported in Q3 FY26, driven by improved efficiency and product mix.

Controlled Capital Expenditure and Stable Tax Rates

Capital expenditure for the nine months of FY26 totaled INR 39 crores, with INR 9 crores spent in Q3 on plant and machinery upgrades. The company stated that major capex plans are now complete, and no significant capex is foreseen for FY27, with maintenance capex expected to be around INR 65 lakhs per quarter. The current lower tax rate of 18-19% for FY26 and FY27 is attributed to MAT credit utilization, with a return to normal tax slabs of 25-26% expected post-FY27.

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