The delay in regulatory approval for semaglutide in Canada led to a sharp revenue shortfall. With lower topline, operating leverage deteriorated, while operating expenses rose on a year-on-year basis.
Margins were further pressured by the impact of the new Labour Code during the quarter.
| Q3FY26 | Q2FY26 |
Q3FY25 |
QoQ |
YoY |
|
|
REVENUE |
290.34 |
375.763 |
392.6 |
-23% |
-26% |
|
OPEX |
273.018 |
269.268 |
250.7 |
1% |
9% |
|
Ebitda |
17.322 |
106.495 |
141.9 |
-84% |
-88% |
|
MARGINS |
6.0% |
28.3% |
36.1% |
-79% |
-83% |
|
PROFIT |
-88.699 |
10.485 |
-68.8 |
-946% |
29% |
Management commentary
Management described Q3 as a subdued quarter but maintained that underlying demand trends remain intact.
The order book continues to show an upward trajectory, while interest in the biologics segment is rising. The company has also onboarded another biosimilar player, reinforcing confidence in the platform.
Despite near-term challenges, management reiterated its confidence in long-term growth prospects.FY28 guidance reiterated despite weak Q3
Despite the weak quarterly performance, the company reaffirmed its FY28 guidance. It expects organic revenue of ₹40,000 crore, which could rise to ₹50,000 crore including the proposed acquisition.
EBITDA margin guidance was maintained at 40%, while net debt to EBITDA is targeted to remain below 1.5x.
Key growth drivers going ahead
Management pointed to multiple structural growth drivers, including a global surge in GLP-1 demand as semaglutide loses patent protection in over 130 countries.
The shift towards end-to-end CDMO partnerships and the scaling up of the biologics platform are expected to support growth.
Over 70% of the business continues to come from existing customers, providing revenue visibility.
