SMS Pharmaceuticals Limited has started the financial year 2027 on a healthy note, with an 8% year-over-year growth in profit after tax (PAT) driven by diversified growth across high-value APIs and a sustained EBITDA margin of around 20%.
According to a BSE filing, the company’s revenue grew 6% year-over-year, driven by a diversified growth across high-value APIs. The company’s gross margin remained above 45%, reflecting a structural improvement in unit economics.
The company’s EBITDA margin was sustained at around 20%, despite being impacted by annual employee increments and elevated freight costs.
The company expects these temporary headwinds to ease in the near future, providing further support to margin expansion alongside the continued benefits of backward integration and an improving product mix.
The company’s R&D team has developed a pipeline of 6 to 8 niche and high-value molecules, which are expected to enter commercial production towards the end of this financial year.
The company has also allocated additional capital of ₹50 crore to its peptide CDMO platform, in line with its strategy of building a differentiated portfolio of niche, high-value products.
The company’s ₹280 crore capex programme is progressing as planned, with ₹120 crore already completed. The remaining ₹160 crore is expected to be completed by FY27, supporting the commercialisation of new niche and high-value molecules.
The company’s strong performance in the first quarter of FY27 reinforces its position as a diversified and integrated pharmaceutical company, with a strong focus on high-value APIs and complex intermediates. This order adds to the company’s growing pipeline of high-value products, strengthening its position in the pharmaceutical sector.
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