SUDEEPPHRM

Sudeep Pharma Limited delivered a strong financial performance in FY26, with revenue from operations growing by 27.9% year-on-year to INR 642.3 crores. PAT for the year also saw a significant increase of 25.7% to INR 174.3 crores. This growth was achieved despite a challenging global operating environment, reflecting the company's resilient operational performance and strategic initiatives.

FY26 was a transformational year marked by several strategic milestones. The company successfully completed its listing, acquired Nutrition Supply Services (NSS) in Europe to strengthen its nutrition platform, and made substantial progress on its new greenfield manufacturing expansion. Additionally, Sudeep Pharma initiated the groundbreaking and construction of a battery material project at Dahej in Gujarat, positioning itself for future growth platforms.

The Pharma Food & Nutrition vertical remains the core pillar, contributing approximately 56% of FY26 revenues and reporting a 10% revenue growth over FY25. Performance was driven by healthy demand for calcium and iron portfolios, with India and Europe as key contributors. The company also launched next-generation mineral molecules like bisglycinate under its AbsorBis brand, which are clinically proven for enhanced absorption and offer higher realization.

The Specialty Ingredients vertical demonstrated strong momentum, becoming the fastest-growing segment with a 62% revenue growth over FY25, reaching INR 280 crores. This segment's contribution to overall revenues increased to 44% in FY26 from 34% in FY25. Growth was particularly strong in critical applications like infant nutrition, medical nutrition, sports nutrition, and dietary supplements, with significant traction in North America and Europe.

The Sudeep Advanced Materials (SAM) project is a key long-term growth opportunity. The groundbreaking for the battery materials project at Dahej is on track for commissioning of Phase 1 capacity of 25,000 metric tons per year by April 2027. The company has already received initial commercial purchase orders for approximately 700 metric tons and anticipates selling around 2,500 metric tons in FY27. The total project for 100,000 tons capacity is estimated to cost INR 600 crores and has a revenue potential of INR 1,600-1,800 crores at full utilization.

While revenue and PAT grew robustly, the FY26 EBITDA margin saw a decline to 34.6% from 37.8% in FY25. This was attributed to strategic investments in building teams across Europe and North America, and higher operational costs for new molecules at lower capacity. Management expects margins to track back to FY24/FY25 levels of 37-38% in the next couple of quarters as these investments yield returns and pricing actions take full effect.

The company's working capital days increased from 184 to 213 days in FY26, primarily due to a strategic increase in raw material and finished goods inventory. This inventory build-up was aimed at ensuring supply continuity amidst global volatility^🌐 and supporting customer commitments. Management is actively focused on improving balance sheet efficiency and targets to normalize working capital days to 150-160 within the current financial year.