Supriya Lifesci.

Supriya Lifescience reported strong financial results for Q4 FY26, with revenue from operations reaching INR277 crores, marking a 50% year-on-year growth. For the full fiscal year 2026, revenue stood at INR828 crores, an 18.9% increase over FY25, aligning with the guided ~20% growth. The company's EBITDA for FY26 was INR294 crores, growing 13% YoY, and achieved a robust margin of 35.5%, surpassing its 33-35% guidance. A significant highlight was the Lote facility receiving a USFDA Establishment Inspection Report (EIR) with a Voluntary Action Indicated (VAI) classification after a surprise inspection in February 2026, with only one minor observation, underscoring strong compliance.

The company successfully introduced a key cardiovascular product in Q3 FY26, which began contributing to revenue in Q4 FY26, and launched an ADHD product that has seen strong demand in LATAM and Europe. These new products, along with existing APIs, contributed to the export segment accounting for 82% of FY26 revenues, with Europe alone contributing 40%. Growth in Europe was specifically driven by new CEP approvals for two to three products and the acquisition of new customers, reinforcing the company's focus on regulated markets for higher margins.

Supriya Lifescience is prioritizing capacity expansion to support future growth, with INR200 crores earmarked for Phase 1 development at the Patalganga land, expected to commence in FY27. An additional INR40-50 crores will be invested in the F block at Lote to add 150-200 KL of capacity within the next two years. The company's R&D spend has doubled, focusing on new APIs for niche molecules, CDMO/CRO opportunities, and finished formulations, including a novel semaglutide tablet formulation with a patent filed.

The company reiterated its guidance for FY27, targeting approximately 20% annual revenue growth and an EBITDA margin of 33-35%, aiming to achieve the INR1,000 crores revenue milestone. Key growth drivers include sustained demand across core therapeutic segments, the launch of 3-4 new products annually, and the scaling up of the DSM contract to a peak revenue of INR60 crores in FY27. However, management cautioned that growth would not be linear across quarters due to a scheduled annual maintenance shutdown in August for older blocks A&D.

Net working capital days increased to 170 days in FY26 from 158 days in FY25 and 124 days in FY24, a trend management attributes to business growth and the Ambernath facility, with a target to maintain it within the 170-180 day range going forward^⏳. The full revenue effect of the Ambernath facility is anticipated in 2-3 years, with some contribution from semi-regulated markets expected in FY27. The EU audit for Ambernath is scheduled for H2 FY27, while USFDA audit dates are still pending. The launch of the contrast media product has been strategically deferred to H2 FY27 to allow for further enhancement and process optimization for better economics.