Shilpa Medicare Posts Record Revenue, EBITDA on Strong Growth Momentum

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AuthorVihaan Mehta|Published at:
Shilpa Medicare Posts Record Revenue, EBITDA on Strong Growth Momentum
Overview

Shilpa Medicare Limited achieved its highest-ever quarterly revenue of INR 411 crore, a 28% YoY jump, and record quarterly EBITDA of INR 115 crore, up 40% YoY, in 3Q FY26. EBITDA margins improved 200 bps to 28%. For 9M FY26, revenue grew 14% to INR 1,110 crore, with EBITDA up 26% to INR 323 crore and margins expanding 300 bps to 29%. Adjusted PAT soared 128% YoY to INR 146 crore for the nine months. Growth was fueled by a ~50% YoY rise in Formulations revenue, a novel NAFLD drug launch, and expanded API capacities. Shilpa Medicare forecasts a 'significantly better' FY27.

📉 The Financial Deep Dive

Shilpa Medicare Limited has reported a stellar performance for the third quarter and nine months ended December 31, 2025 (3Q & 9M FY26), marking significant financial milestones. The company posted its highest-ever quarterly revenue at INR 411 crore, exhibiting a robust 28% year-on-year (YoY) growth. Complementing this, quarterly EBITDA reached a record INR 115 crore, marking a substantial 40% YoY increase. Crucially, EBITDA margins witnessed an improvement of approximately 200 basis points (bps) YoY, settling at 28% for the quarter.

For the nine-month period (9M FY26), the growth trajectory continued. Revenue climbed 14% YoY to INR 1,110 crore, while EBITDA surged 26% YoY to INR 323 crore. The company demonstrated impressive operational efficiency, with EBITDA margins expanding by a significant 300 bps YoY to 29% over the nine months. Adjusted Profit After Tax (PAT) for 9M FY26 saw a remarkable 128% YoY increase, reaching INR 146 crore.

🚀 Strategic Analysis & Impact

The strong financial results are underpinned by strategic business developments. The Formulations business emerged as a key growth engine, reporting approximately 50% YoY revenue increase in 3Q FY26. This surge was propelled by exceptional traction in the European Union market, which recorded over 100% YoY growth. Furthermore, the successful launch of "Noduca™", a novel, first-in-class therapy for Non-alcoholic Fatty Liver Disease (NAFLD) in India, marks a significant step. This launch, supported by partnerships with three major pharmaceutical companies for domestic marketing, highlights the company's innovation and market penetration capabilities.

The Active Pharmaceutical Ingredients (API) segment also contributed positively, driven by newly expanded capacities, particularly for non-oncology products, and the commercialization of enhanced capacities for key molecules. Regulatory milestones include EU approval for Rotigotine and the completion of Phase 3 trials for Ondansetron ER in India. Several API programs are progressing towards US FDA approval, indicating a healthy pipeline for future commercialization.

đźš© Risks & Outlook

Shilpa Medicare expressed strong confidence in achieving a "significantly better FY27". This optimism is rooted in the anticipated operating leverage and margin improvements stemming from better utilization of its expanded gross block, which stood at INR 2,087 crore in 9M FY26. The company's forward-looking strategy involves multiple product launches across its Formulations (FDF), CDMO, API, and Biologics segments. The development and strategic partnership with Orion Corporation for European commercialization of its Recombinant Human Albumin product are also key to future growth. The company's focus on a differentiated, R&D-driven model targeting high-value, limited-competition products positions it well, but execution risks for new launches and market penetration will be critical to watch. Competition and timely regulatory approvals also remain standard industry risks.

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