Concall AI

Senores Pharmaceuticals Limited — Q1 FY26 earnings call

Call held 24 Jul 2025

Management summary

Senores Pharmaceuticals delivered a strong Q1 FY26, with consolidated revenue up 72% YoY to INR 138 crores, EBITDA up 60%, and PAT up 95%. Growth was primarily driven by regulated markets and the CDMO-CMO segment. The company achieved positive operating cash flow and continues to expand its product portfolio and manufacturing capabilities, maintaining confidence in its FY26 growth targets despite some margin compression in emerging markets.

Highlights

Consolidated revenue grew by 72% YoY to INR 138 crores in Q1FY26.
EBITDA grew by 60% YoY to INR 34 crores in Q1FY26.
PAT grew by 95% YoY to INR 21 crores in Q1FY26.
Regulated markets revenue grew 69% YoY to INR 90 crores, reflecting strong resilience.
Domestic branded generic business revenue grew more than 4x YoY to INR 8 crores.
Achieved positive operating cash flow of INR 11 crores in Q1FY26, signaling improved financial health.

Concerns

EBITDA margin dropped by approximately 170 bps YoY to 24.8% (though improved QoQ by 360 bps).
Emerging markets EBITDA margin remained stagnant at 6% in Q1FY26.

Key financials

01 Consolidated Revenue ₹138 Cr +72%YoY
02 Consolidated EBITDA ₹34 Cr +60%YoY
03 Consolidated EBITDA Margin 24.8%
04 Consolidated PAT ₹21 Cr +95%YoY
05 Operating Cash Flow ₹11 Cr

What they filed

Q1 FY27: revenue up 30.4%, net profit up 42.9% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	101	103	114	138	162 +60%	171 +66%	175 +54%	180 +30%
Expenses	77	77	95	104	112	121	128	126
EBITDA	23	26	19	34	50 +117%	50 +92%	47 +147%	54 +59%
Margin	23%	25%	17%	25%	31%	29%	27%	30%
Other income	2	5	12	3	5	7	18	3
Interest	5	6	5	5	6	5	8	7
Depreciation	4	4	5	6	8	8	9	10
Profit before tax	16	20	21	26	41 +156%	45 +125%	47 +124%	39 +50%
Tax rate	18%	20%	13%	20%	26%	25%	23%	23%
Net profit	13	16	18	21	30 +131%	34 +113%	37 +106%	30 +43%
EPS	3.86	3.73	3.87	4.28	7.03	6.87	6.86	6.67

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 Revenue

₹155 Cr Total

Regulated Markets ₹90 Cr 58.1%
Emerging Markets ₹29 Cr 18.7%
CDMO-CMO ₹28 Cr 18.1%
Domestic Branded Generic Business ₹8 Cr 5.2%

Order book

high confidence

Total value

$23 Mn

as of 2025-07-24 quantified

Execution

spilling over to next 12 months to 15 months, 18 months

Management expressed confidence in achieving INR 200 crores from CDMO-CMO for the current year based on the order book and ongoing discussions.

Source: Q&A

Capital allocation

high confidence

Capex ₹150 Cr internal approvals, part of debt and part of our IPO proceeds
- US manufacturing plant expansion (third and fourth lines)
- API facility
Overall capex, I think we'll do in tune of INR 100 crores, INR 150 crores this year. We've said 250, but I think looking at where we are, I think INR 100 crores, INR150 crores would be the right number of overall capex between US as well as India is what we anticipate for the year. Part of it will spill to the next year. So, this year actual about 150 and then spillover of 50 plus next year. ... capex is going to be serviced from internal approvals, part of debt and part of our IPO proceeds.
M&A ANDAs from Dr. Reddy's, Breckenridge and Wockhardt Acquisition · Integrated

Strengthened pipeline and will be launched in a phased manner over the next few quarters.
Expected to start contributing from H2 FY26, with full impact visible from FY27.

In addition to our in-house product development, the acquisition of ANDAs from Dr. Reddy's, Breckenridge and Wockhardt has significantly strengthened our pipeline. These acquired products will be launched in a phased manner over the next few quarters. ... Notably, the growth achieved in this quarter does not include any revenue contributions from the acquired portfolio. Revenue from these assets is expected to start contributing from the second half of current financial year, with the full impact becoming visible from FY27 and onwards.
Liquidity Liquidity disclosed Achieved positive operating cash flow of INR 11 crores in Q1FY26, with a consistent improvement in cash flow trajectory.

Also, we are happy to report that we have achieved positive operating cash flow in Q1FY26. Our cash flow trajectory has shown consistent improvement and we are confident in our ability to sustain

Guidance & targets

Revenue

Top Line Growth Revenue · FY26 · High confidence 50%

We remain confident of delivering 50% growth in top line and about 100% growth in PAT for FY26 over FY25.

— Swapnil Shah
US Regulated Revenue Revenue · FY26 · High confidence INR 400 odd crores

So, this year from our US regulated side, we expect to do about INR 400 odd crores.

— Swapnil Shah
US Regulated Revenue Growth Revenue · going forward · Medium confidence 20-30% CAGR

And on a steady state going forward basis, you can assume between 20% to 30% CAGR growth, you know.

— Swapnil Shah
CDMO-CMO Revenue Revenue · FY26 · High confidence INR 200 odd crores

That's about INR 200 odd crores that will come from CDMO-CMO segment. That's our this year projection.

— Swapnil Shah
Total Top Line Revenue · FY26 · High confidence INR 600-650 crores

So, taking all together we have guided that we should do definitely about INR 600 crores top line this year. INR 600 crores to INR650 crores as the range that we have talked about.

— Sanjay Majmudar
Branded Generics Business Revenue Revenue · FY26 · High confidence INR 50 crores

The branded generics business is expected to surpass revenue of INR 50 crores in FY26.

— Swapnil Shah

Profitability

PAT Growth Profitability · FY26 · High confidence 100%

We remain confident of delivering 50% growth in top line and about 100% growth in PAT for FY26 over FY25.

— Swapnil Shah
Emerging Markets EBITDA Margin Profitability · annualised basis · Medium confidence 15-17% range

However, with the expected improvement in profitability from emerging markets, we foresee our EBITDA in emerging markets business stabilising at around 15% to 17% range on a sustainable annualised basis.

— Swapnil Shah
Emerging Markets EBITDA Margin Profitability · next year · Medium confidence mid-teens

So, I think 100% next year, we should be in mid-teens in the emerging market in terms of EBITDA.

— Sanjay Majmudar
Emerging Markets PAT Profitability · this year · Medium confidence marginally positive

Yes, on PAT basis, we should be, I think, marginally positive this year.

— Deval Shah

Regulatory

API Facility FDA Approval Regulatory · Q2 FY27 · High confidence Q2 FY27

I think what we said is Q2 next year is when we expect FDA to come and inspect.

— Swapnil Shah
Emerging Markets Product Approvals Regulatory · within 18 months · High confidence all 719 products approved

So, say, by 18 months from today, we would add about 719 products will get registered and ready to be launched in hindsight, if I have to summarize that number.

— Swapnil Shah

Market Presence

Branded Generics Pan-India Presence Market Presence · end of FY26 · High confidence Pan-India

We have been increasing our field force in the branded generics segment and expect to be present Pan-India by the end of FY26.

— Swapnil Shah

Capacity

US Manufacturing Capacity Capacity · after completion of four lines · High confidence almost 2 billion units

From 1.2 billion units today

US manufacturing plant from 1.2 billion units to almost 2 billion units. After the completion of four lines, we will set up our sterile manufacturing in the US.

— Swapnil Shah
Third US Manufacturing Line Operational Capacity · Q3 FY26 · High confidence operational

We expect the third manufacturing line in the US to be operational by Q3FY26 and the fourth line towards the end of financial year 2026.

— Swapnil Shah
Fourth US Manufacturing Line Operational Capacity · end of FY26 · High confidence operational

— Swapnil Shah

Revenue Mix

Revenue Split (Regulated vs Emerging) Revenue Mix · going forward · Medium confidence 60:40 ratio

Difficult to predict, but I think we'll still maintain around 60:40 ratio. This is what our belief is.

— Sanjay Majmudar

Tax Rate

Average Tax Rate Tax Rate · on average · High confidence around 20%

Tax rate should be around 20% on an average.

— Deval Shah

Market context

Emerging Markets EBITDA Margin Profitability · this year · Medium confidence double-digit

Previously 6% → double-digit

We have done about 6% EBITDA in the emerging market. We believe we should reach closer to double-digit, hopefully. At least around 10% is what we are believing. ... This year, hopefully double-digit. That's what the target is.

— Sanjay Majmudar

What to watch in Q2 FY26

Third US Manufacturing Line Operationalization

Q3 FY26

Current Almost completed

Target Operational

Why it matters

Successful operationalization will add to manufacturing capacity and support future growth drivers.

Third line is almost about to be completed, which will get operationalized in Q3 of this year.

Risks & concerns

Price Erosion in US Generics
low

Management stated low dependency on individual products (2-2.5% of total revenue) and new product launches mitigating impact.

Analyst downplayed
US Tariff Situation
low

Formulation manufacturing is local in the US, and API procurement from China/Europe is minimal, limiting tariff impact.

Management insulated
Regulatory Risk
low

General industry regulatory risks exist, but no specific current risks for Senores beyond standard operations.

Management acknowledged
Cough Syrup Controversy
low

Management explicitly stated they are 'totally away' from cough syrups and have discontinued any related registrations.

Analyst acknowledged

Q&A highlights

7 direct

Controlled Substances Business Mechanics and Margins Partial

So largely, controlled substance is quota-driven? So, DEA, that's a department that US government runs, hands out the quota to each approved player for that particular product. And usually, it is distributed equally among all the approved players that's out there. So, it's a quota-driven. ... See, as a matter of clarity and strategy, we generally would want to talk only of a consolidated regulated market margin where we have this year reported about 35-36%.

Analyst sought clarity on a key business segment's operational model and profitability, with management explaining the quota-driven nature and preferring to disclose consolidated regulated market margins rather than segment-specific ones.

Asked by Kiran D.

US Revenue Potential from Atlanta Plant Direct

So, this year from our US regulated side, we expect to do about INR 400 odd crores. And on a steady state going forward basis, you can assume between 20% to 30% CAGR growth, you know. ... And just to add and answer your question, currently, entire revenue of US is coming from US side.

Analyst inquired about the future revenue contribution from the US plant, and management provided specific FY26 targets and long-term CAGR, clarifying that all current US revenue originates from their US operations.

Asked by Kiran D.

CDMO vs. Own Products Split in Regulated Markets Direct

So, in the current quarter, I would say that CDMO, CMO was about INR 28 crores, and rest all was own products. But again, this is not a trend. It all depends on which particular quarter, what is the demand position. But overall, annually, whatever I achieve, you can say that generally, the split will be almost equal.

Analyst sought a breakdown of revenue sources within regulated markets, and management provided the Q1 split and indicated an annual near 50:50 split between CDMO/CMO and own products.

Asked by Rudraksh Raheja

Government Sector Contribution in Regulated Markets Direct

So currently, almost 60%-70% business is between government and control substance of overall pie of the business that we have from the US. And the remaining about 30-odd percent is between a specialty and retail side of the business. So, a large part of our existing business goes into government and control substance. ... Just to add, I think we are not dealing directly with the government again. It is just through our partners that they supply to the government.

Analyst questioned the government's share in regulated markets, and management clarified that 60-70% of US business is government/controlled substance-driven, supplied through partners, highlighting revenue stability.

Asked by Rudraksh Raheja

Product Rollouts and Emerging Markets Registration Timeline Direct

No, so all are launched. Two were additionally launched. So remaining all are already launched. It's not that we can only launch 2 out of 24. So all the products that we have approval for, we have launched. ... So, say, by 18 months from today, we would add about 719 products will get registered and ready to be launched in hindsight, if I have to summarize that number.

Analyst questioned the pace of product rollouts and the timeline for emerging market registrations, receiving clarification on existing launches and a commitment for all 719 registered products to be approved within 18 months.

Asked by Pranav Gandhi

CDMO-CMO FY26/FY27 Outlook and Order Book Direct

So, one is, currently, this year we've said we'll do about INR 400 odd crores from the U.S. side of the business. And typically, as we discussed 50% would come from CDMO-CMO. That's about INR 200 odd crores that will come from CDMO-CMO segment. That's our this year projection. ... About US Dollar 23 million for CDMO-CMO.

Analyst sought specific guidance on CDMO-CMO revenue for FY26/FY27 and the current order book, with management providing a clear FY26 target of INR 200 crores and a USD 23 million order book with 12-18 months visibility.

Asked by Rajesh Kothari

API Facility FDA Inspection Timeline Direct

I think what we said is Q2 next year is when we expect FDA to come and inspect. Why we are confident of them coming next year because the product that we are filing DMF for, we already have an existing commercial product in the US.

Analyst inquired about the regulatory timeline for their new API facility, and management provided a specific expectation for FDA inspection in Q2 FY27, backed by their existing product portfolio.

Asked by Naitik Mohata

Turnaround to Positive Operating Cash Flow Direct

No. So, this quarter, we've had INR 11 crores of operating positive cash. ... Negative cash flow is a function of continuous growth and reinvestment. I think it's a bit early for us to tell you that what percentage of the cash would be as a surplus positive cash. Let's wait for a couple of quarters. We have a lot of growth still coming, but we are very confident of continuous positive cash flow from the operations.

Analyst questioned the shift from historical negative cash flow to positive operating cash flow in Q1FY26, with management confirming the positive trend and expressing confidence in its sustainability despite ongoing growth investments.

Asked by Vivek Gautam

3 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Performance Driven by Regulated Markets

Senores Pharmaceuticals reported a robust Q1 FY26, with consolidated revenue growing 72% YoY to INR 138 crores. This strong top-line performance translated into a 60% YoY increase in EBITDA to INR 34 crores and a 95% YoY surge in PAT to INR 21 crores. The regulated markets segment was a primary growth driver, contributing INR 90 crores with a 69% YoY and 40% QoQ growth. Despite a YoY EBITDA margin compression of 170 bps to 24.8%, the company saw a QoQ improvement of 360 bps, and remains confident in achieving 50% top-line and 100% PAT growth for FY26.

Product Portfolio Expansion and CDMO-CMO Traction

The company received 4 USFDA approvals in Q1 2026, bringing its total approved products to approximately 70, and commercially launched 2 new products, increasing its commercialized ANDA portfolio to 24. For FY26, 15-16 ANDA products are slated for launch, predominantly in the second half. The CDMO-CMO segment demonstrated steady traction, adding 5 new products in Q1 FY26 to reach a portfolio of 27 products, and contributed INR 28 crores in revenue for the quarter. Management expects CDMO-CMO revenue to reach INR 200 crores for FY26, supported by a USD 23 million order book with 12-18 months visibility.

Strategic Focus on Government Contracts and Backward Integration

A significant portion (60-70%) of the US business is derived from government contracts and controlled substances, which provides stable demand and predictable revenue streams due to long-term contracts and fixed pricing structures. This strategy helps insulate the company from price erosion. The newly commissioned API facility in Chhatral, with a capacity of 100-150 metric tons per year, is progressing as planned, with FDA approval anticipated in Q2 FY27. This backward integration is expected to bolster the supply chain and enhance margins.

Emerging Markets Profitability and Domestic Branded Generics Growth

Emerging markets revenue grew 32% YoY to INR 29 crores, though the EBITDA margin remained stagnant at 6%. Management aims to stabilize this margin at 15-17% annually, targeting double-digit profitability this year and mid-teens next year. The domestic branded generics business showed significant momentum, growing over 4x YoY to INR 8 crores in Q1 FY26. The company plans to achieve INR 50 crores in revenue from this segment and establish a Pan-India presence by the end of FY26.

Capacity Expansion and Capital Expenditure Plans

Senores is actively expanding its US manufacturing capacity from 1.2 billion units to almost 2 billion units. The third manufacturing line in the US is expected to be operational by Q3 FY26, with the fourth line following by the end of FY26. The total capital expenditure for FY26 is projected to be between INR 100-150 crores, funded through a mix of internal accruals, debt, and IPO proceeds. This expansion is crucial for supporting future growth and operational efficiency.

Positive Operating Cash Flow and Regulatory Insulation

The company achieved a positive operating cash flow of INR 11 crores in Q1 FY26, marking a significant improvement in its cash flow trajectory. Management expressed confidence in sustaining this positive trend. Regarding potential US tariffs, the company believes it is well-insulated, as its entire formulation manufacturing is done locally in the US, and API procurement from China and Europe constitutes only small quantities.

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