FY26 EBITDA margin guidance maintained at ~19.5%
Management reiterated EBITDA margin guidance of 19-20% for FY26, despite strong Q1, citing potential H2 opex from CDMO and medtech ramp-up.
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R&D spend guidance of 4.5-5% of revenue for FY26
R&D expenses will be 4.5-5% of revenue for the full year, with higher spending in H2 due to filing cycles.
Medtech business to break even by FY28
Medtech business expected to break even in FY28; FY26 and FY27 will see losses of ₹40-50 crore each.
Capex guidance of ₹750 crore for FY26
Capital expenditure for FY26 is guided at ₹750 crore, primarily for CDMO and biotech facilities.
India business to outperform IPM by 100-150 bps
Management expects India growth to continue at double-digit, outperforming the IPM by 100-150 bps in H2 and FY27.
Full-year EBITDA margin guidance of 19.5-20%
Despite H2 opex from US CDMO (~₹50-60 cr/quarter) and GST impact (~₹50-60 cr), management expects EBITDA margin of 19.5-20% for FY26.
US CDMO plant to reach ₹300 cr annual revenue in 12-18 months
The US CDMO plant, operational from September, is expected to achieve an annual run-rate of ₹300 crore within 12-18 months.
R&D spend to be 4-5% of revenue for FY26
R&D expenses were 3.3% in H1; management expects full-year R&D to be within 4-5% due to phasing of filings in Q4.
India branded generics to grow 100-150 bps above IPM
Management expects to sustain outperformance of 100-150 bps vs the Indian pharmaceutical market in FY27.
US pharma growth of high single-digit on dollar basis
US business expected to grow high single-digit YoY in dollar terms, with forex gains and new launches adding upside.
EBITDA margin to remain in 20-21% range
Despite geopolitical headwinds, management expects EBITDA margin to be around 20-21% for FY27, similar to FY26.
Tax rate to decline to 27-29% from FY27
Company moving to new tax regime from April 2026, reducing effective tax rate to 27-29% from earlier 35-38%.