Senores Pharma.

Senores Pharmaceuticals reported a robust Q3 FY26, with consolidated income reaching INR175 crores, marking a 64% year-on-year growth. EBITDA for the quarter stood at INR54 crores, an 86% YoY increase, with the EBITDA margin improving by 360 basis points YoY to 30.9%. Profit after tax grew by approximately 85% YoY to INR32 crores. For the nine months ended December 2025, consolidated income was INR474 crores (65% YoY growth), EBITDA was INR138 crores (87% YoY growth) with a 29% margin, and PAT more than doubled to INR84 crores, achieving a 17.7% PAT margin.

The company completed the acquisition of a 75% stake in Apnar Pharma, with the remaining 25% expected by Q2 FY27. This acquisition provides a US FDA-approved facility, enhancing manufacturing capability and flexibility, and enabling a shift of select product manufacturing from the US to India. Apnar Pharma is expected to contribute INR120-150 crores in revenue in FY27 and includes five approved ANDAs projected to generate $16-18 million in the next 12-15 months, becoming cash flow positive this quarter.

Regulated markets revenue grew by 60.5% YoY in Q3 FY26 to INR113 crores, and 71% YoY for 9M FY26 to INR310 crores. Emerging markets revenue increased by 48% YoY to INR38 crores in Q3 FY26 and 17% YoY to INR99 crores for 9M FY26. India's branded generics business saw significant growth, with Q3 revenue at INR10.5 crores (over 6x YoY) and 9M revenue at INR31 crores (over 7x YoY). The approved ANDA portfolio quadrupled from 12 in Dec 2024 to 46 by Dec 2025, covering over 137 product trends, with 28 approved ANDAs and 22 molecules under development slated for launch within 6-8 quarters.

Consolidated EBITDA margin improved by 360 bps YoY to 30.9% in Q3 FY26, and 340 bps YoY to 29% for 9M FY26. The US-regulated business maintains a sustainable EBITDA margin of around 40%, with potential for further improvement. Emerging market EBITDA margins are expected to improve in Q4 and stabilize at 18-22% in FY27, driven by new product commercialization and a shift towards export-based, dollar-denominated revenue. Operating cash flow for 9M FY26 stood at INR51 crores, demonstrating improved cash flow generation.

The company utilized IPO proceeds for the Apnar acquisition, with INR25 crores remaining. To support future growth, including new product acquisitions and working capital, a warrant structure was implemented to raise an additional INR75-100 crores, with 25% contributed upfront and the balance over 6-12 months. Capex for the next 2-3 years is projected to be INR50-100 crores, including the expansion of the Atlanta Oral Solid Facility from 1 billion to 2 billion tablets by next year. A small promoter share pledge was made to consolidate borrowings and is not expected to increase.

Senores reiterated its FY26 targets of 50% top-line growth and 100% PAT growth, indicating they are on track and slightly exceeding profitability guidance. For FY27, the company targets a minimum of 25%+ growth. Strategic initiatives include obtaining PIC/S approval for the Chhatral manufacturing facility to expand into mid-tier emerging markets, and establishing Zoraya Pharmaceuticals in the US for direct distribution and marketing of strategic products. The company expects to launch all 28 approved ANDAs and at least 10 of the 22 under-development products within the next 6-8 quarters.