Shilpa Medicare Ltd (SHILPAMED) Q1 FY27 Earnings Call: Posts Highest-Ever Quarterly Revenue, Harvest Phase Begins

Shilpa Medicare Ltd held its Q1 FY27 earnings call on August 05, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Highest-Ever Quarterly Revenue Across All Verticals

• Revenue Rs.469 Cr — highest-ever quarterly revenue, up 63% YoY, driven by API, formulation, and biologics verticals.
• EBITDA Rs.139 Cr — margin of 30%; management expects margins to remain near this level for FY 2026-2027.
• PAT Rs.101 Cr — up 115% YoY; tax rate was negative due to reversal of deferred tax liability, with normalisation to 20-25% expected in coming quarters.
• API revenue Rs.260 Cr (+15% YoY), Formulation revenue Rs.198 Cr (+100% YoY), Biologics revenue Rs.52 Cr (+42% YoY).
• ROCE improved to 12.5% (from 8.8% in FY25); adjusted for biologics and NB businesses, ROCE stood at 18.3%.
• Credit rating upgraded to AA-; net debt/EBITDA reduced to 1.3x from 6.7x three years ago.

25+ NCE Programs Underpin Long-Term CDMO Ambition

• CDMO ambition scaled to Rs.800–1,000 Cr+ — management acknowledged the aspiration but did not disclose current segment revenue.
• 25+ NCE programs underway — management noted "if even 10 programs become commercial, it will lead to a sizable CDMO business over the next 3 years".
• Three late-stage NC programs have visibility to enter commercial phase in FY 2027-2028, with dedicated BD teams per division.
• 20+ CDMO customers served as of Q1 FY26-27; capabilities span API, biologics, formulations, ADCs, and peptides.
• API division grew 16% in Q1 FY26-27, driven by the CDMO portfolio (not the polymer division); two Japanese customers onboarded for late-stage projects.
• 15 new oncology API products in pipeline; captive API consumption for formulations stands at >50%.

Portfolio Expansion with Nivolumab, Aflibercept, and Albumin

• Biologics revenue Rs.52 Cr in Q1 FY26-27 (vs Rs.150 Cr full-year FY25-26), with management guiding for "significantly higher growth" on a smaller base.
• Aflibercept launch expected in India in FY 2026-2027; three partnering agreements signed in the ophthalmology space.
• Nivolumab expected in India by FY 2027-2028 — partnered with Orion Corporation, providing "further comfort on global commercialisation".
• 8 biosimilar molecules remain unpartnered; only one biosimilar partnered in Europe to date, with commercial revenues expected as partnering progresses.
• Albumin (NBE) Phase I complete — Phase III starting globally, already partnered in Europe, targeting "one of the largest albumin markets".
• First ADC biosimilar to enter human studies in FY 2026-2027; two NB projects (MapTree, Alveolus Bio) also entering human studies.

US Business Surges 11x; Europe Dip Called a Timing Issue

• US business saw 11x revenue improvement in Q1 FY26-27; US exports stood at Rs.45 Cr. Management stated complex products mitigate potential tariff impact.
• Europe revenue declined QoQ to ~Rs.57 Cr (from ~Rs.77 Cr in Q4 FY25-26), attributed to supply scheduling for tender-based products, not underlying demand.
• NOR-UDC generated Rs.59 Cr over Q4 FY25-26 and Q1 FY26-27; Phase 4 study ongoing. M-Cure Pharma received CDSCO approval for an additional fatty liver indication for semaglutide (different mechanism from NOR-UDC).
• Three 505(b)(2) products showing sustained QoQ growth; Roti-Gotin transdermal patch US launch planned for FY 2027-2028.
• Complex FDF launches expected around FY 2028 and FY 2029 — management emphasises sustainable growth over short-lived market share.
• Partner Unisys received a CRL from USFDA for its drug; management confirmed the partner "plans to refile in Q3" (period unspecified).

Harvest Phase Begins; No Major CAPEX Needed for 3 Years

• EBITDA margin guided at ~30% for FY 2026-2027 — management prefers to be conservative and over-deliver. Gross margin at 71% (dip from 75% in Q1 FY25-26 due to raw material inflation).
• No significant CAPEX needed for next 3 years (FY27-29) — management stated past investments in biologics and formulations are not yet fully utilised. Q1 CAPEX was Rs.114 Cr (internal accruals).
• Heavy investment phase "largely over" — management explicitly stated the company is entering a "harvest phase" with improving operating leverage and ROCE.
• New tax regime (Section 115BAA) adopted — effective rate ~19% for FY 2026-2027 after MAT credit adjustment; forgoing old regime loses ~6-6.5% MAT benefit, but net ~9.75% rate difference favours new regime.
• Key risk cited: regulatory challenges could slow the growth path, though management believes robust compliance practices are in place.

BioSecure Act Impact Immaterial; Tariff Strategy Under Evaluation

• US BioSecure Act has "no major impact" on Shilpa's production, selling, or formulations as of Q1 FY 2026-2027.
• Potential US tariffs not expected to materially impact — management stated Shilpa does not sell "me-too" generics, only complex differentiated products.
• US manufacturing facility evaluation ongoing — management is waiting for "clarity on the tariff regime" before a final decision (timeframe unspecified).
• Unisys partner navigating USFDA CRL — the partner received the Complete Response Letter and plans to refile in Q3 (period unspecified); Shilpa acts as CDMO partner for API and formulations.
• Management declined to detail CDMO stake strategy — citing a "completely different confidential strategy". No deal size, volume, or spend details were provided.