Shilpa Medicare Ltd

- As of the latest update, Shilpa Medicare Limited's net debt was about INR 625 crores as of December 31. - The company is not planning to increase borrowing and is focused on managing debt levels prudently. - They continue repaying term loans, so the overall debt is expected to reduce gradually. - However, the company might take additional borrowing occasionally based on business opportunities or requirements but intends to keep debt within manageable limits. - Funding for ongoing and future capex programs is expected to be mainly through internal accruals. - No explicit mention of planned equity fundraising in the discussion. - Overall, the approach is cautious towards debt, aiming to balance growth investments and debt reduction steadily.

- New peptide capacity planned with a capex of around INR 40 crores to cater to growing GLP-1 peptide demand and CDMO opportunities (Page 13). - Investment in a new oral solid formulation line recently commissioned to support upcoming launches and generate additional revenues in FY '27 (Page 15). - Significant past capex completed; current focus is on execution, scaling, and maximizing ROCE from existing investments (Page 6). - Capex of about INR 87 crores incurred during Q3 FY '26, with expectation to mainly fund capex through internal accruals (Page 6). - No long-gestating investments planned; peptide investment is strategic with focus on timely patent expiries (Page 13). - Incremental capex aimed at increasing production efficiency, capacity utilization, and supporting ongoing product development (Pages 15-16).

- FY '27 expected to have strong growth momentum, building on Q3's solid 30% growth. - Formulation business growing robustly, with 104% quarter-on-quarter growth excluding licensing income. - Launches like NorUDCA and transdermal Rotigotine to boost revenues. - Biologics and Formulation segments anticipated to drive higher growth; API segment to grow steadily. - Increased utilization and new oral solid line at formulation plant to support revenue ramp-up. - Oncology business expected to grow with resolved product validations and increased capacity. - CDMO peptide facility launching with ~INR40 crore capex, expecting inquiries and scale-up. - Licensing income stable at ~INR150 crores annually, with quarter-to-quarter variations normal. - Albumin product commercialization anticipated in India by FY '28, adding new revenue streams. - Capacity expansions and productivity improvements planned to increase asset turnover and output.

- Highest ever quarterly revenue of INR411 crores in Q3 FY '26, growing 28% YoY; 9 months revenue at INR1,110 crores, up 14%. - EBITDA grew by 41% YoY to INR115 crores in Q3; margins improved from 26% to 28%. - PAT for 9 months nearly doubled compared to FY '25 full year, indicating strong profit acceleration. - ROCE significantly improved from 3.5% in FY '23 to over 17% in first 9 months FY '26, expected to increase further with scaling. - Formulation business ex-licensing revenue grew 104% QoQ and 83% YoY for 9 months, indicating strong core earnings growth. - Expected growth drivers for FY '27 & FY '28: Biologics and Formulation segments; API expected to grow steadily. - Q4 FY '26 and FY '27 expected to see meaningful revenue ramp-ups, particularly from NorUDCA and oncology product validations. - Licensing income stable (~INR150 crores/year), with manufacturing revenue expected from orphan drug partners.

- NorUDCA launch has been very successful, exceeding expectations with a strong order book as of Q3 FY26. - Good traction in NorUDCA is noted with an expanding order book from the three marketing partners. - For oncology and other products, specific order book numbers were not disclosed due to confidentiality. - Formulation segment shows stable base revenue, with Europe at ~INR73 crores indicating a steady order flow. - The company expects increased ramp-up and order inflow from new product launches and capacity expansions in FY27. - Partnerships for ADC biosimilars and other product pipelines are expected to contribute to future order books starting FY27.