Emcure Pharmaceuticals (EMCURE) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 delivered robust growth, with revenue up 16% year-over-year and profit after tax up 41%, marking the highest quarterly profit to date.

• EBITDA margin improved to 19.2%, with EBITDA up 20.1% year-over-year; PAT margin at 10.2%.

• Domestic business outpaced industry growth, led by gynaecology, cardiovascular, and new launches, while international business grew 22.1% year-over-year, with strong performance in Canada, Europe, and emerging markets.

• Strategic focus on innovation, partnerships, and new geographies underpins a five-year vision for sustained above-industry growth.

• Expanded partnership with Sanofi to include marketing and distribution of its Oral Anti-diabetic portfolio.

Financial highlights

• Revenue from operations reached INR 2,101 crore, up from INR 1,815 crore in Q1 FY2024; sequentially down 0.7% from INR 2,116 crore.

• Gross margin for the quarter was 61.8%, up from 57.8% in Q4 and 62.4% in Q1 FY2024.

• EBITDA stood at INR 404 crore, with EBITDA margin at 19.2% (vs. 18.5% in Q1 FY2024).

• Profit after tax was INR 215 crore, up 41% year-over-year; PAT margin at 10.2%.

• Earnings per share (consolidated) for the quarter was INR 10.92, up from INR 7.95 year-over-year.

Outlook and guidance

• Targeting 4-5% volume growth in India for the full year, with price and new launches contributing to overall growth.

• Sanofi diabetes portfolio expected to add INR 200 crore annualized, with eight months' contribution in FY2026.

• Five-year vision aims for growth 2% above industry average and EBITDA margin expansion to 23-24% by year five.

• Acquisition of minority shares in Zuventus Healthcare Ltd. expected to complete by September 2025, making it a wholly owned subsidiary.

• CapEx guidance of INR 350 crore per year, with most infrastructure in place for growth plans.