Sms Pharmaceuticals Limited · NSE:SMSPHARMA
Sms Pharmaceuticals — Q2 & H1 FY26 Earnings Presentation
32 slides from Sms Pharmaceuticals's earnings presentation, Nov 10, 2025
Slide 1: Cover letter to stock exchanges
Date: 10th November, 2025 To, The Manager, The Manager, Corporate Filings Department, Listing Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 001 Mu
Slide 2: Investor Presentation Q2 & H1 FY26
Investor Presentation Q2 & H1 FY26 NOVEMBER 2025
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by SMS Pharmaceuticals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Performance Review
01 PERFORMANCE REVIEW www.smspharma.com
Slide 5: Executive summary
Executive summary Strong quarter led by volume growth and market share gains across key APIs Gross margin expanded 30% YoY, driven by backward integration EBITDA margin at 20% in Q2FY26; up by 54% YoY aided by backward integration and operating leverage PAT stood at ₹25.32 crore, up by 80% YoY; Reco
Slide 6: Q2FY26 financial highlights
Q4FY25 financial highlights REVENUE (₹ CRORE) EBITDA & EBITDA MARGIN PAT & PAT MARGIN EPS (₹) 2.84 EBITDA (₹ Cr) Margin (%) PAT (₹ Cr) Margin (%) 248 242 2.43 11% 2.31 10% 10% 197 20% 20% 20% 196 1.95 173 16% 16% 8% 8% 1.69 48 25 41 20 21 35 39 16 18 31 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q2FY25 Q3FY
Slide 7: H1FY26 financial highlights
H1FY26 financial highlights REVENUE (₹ CRORE) EBITDA & EBITDA MARGIN PAT & PAT MARGIN EPS (₹) PAT (₹ Cr) Margin (%) PAT (₹ Cr) Margin (%) 5.13 438 361 10% 46 3.61 20% 88 31 65 18% 9% H1FY25 H1FY26 H1FY25 H1FY26 H1FY25 H1FY26 H1FY25 H1FY26 ₹438 crore ₹ 88 crore ₹ 46 crore ₹5.13 Revenue from operation
Slide 8: Key operating metrics Q2FY26
Key operating metrics Q2FY26 REVENUE BY THERAPEUTIC AREA (%) REVENUE BY GEOGRAPHY-WISE (%) 15% 6% 4% 8% 9% 8% 12% 12% 13% 13% 1% 6% 4% 6% 5% 6% 7% 9% 9% 5% 24% 22% 12% 27% 29% 27% 17% 10% 13% 23% 16% 15% 18% 19% 18% 28% 25% 24% 20% 7% 29% 24% 26% 5% 23% 26% 7% 9% 4% 39% 34% 28% 26% 26% 33% 27% 17% 1
Slide 9: Key operating metrics H1FY26
Key operating metrics H1FY26 REVENUE BY THERAPEUTIC AREA (%) REVENUE BY GEOGRAPHY-WISE (%) 6% 6% 12% 13% 3% 5% 8% 5% 5% 6% 19% 11% 25% 12% 20% 26% 21% 26% 6% 16% 23% 7% 37% 29% 27% 24% H1FY25 H1FY26 H1FY25 H1FY26 Anti-diabetic Anti Retro Viral (ARV) Anti-inflammatory Anti-migraine Anti-ulcer Anti-er
Slide 10: Company Overview
02 COMPANY OVERVIEW www.smspharma.com
Slide 11: SMS Pharma at a glance
SMS Pharma at a glance 1 Diversified API player with a global presence Established in 2 Globally compliant manufacturing facilities 1989 36 years in API manufacturing 3 Global and domestic leadership in key products and development SMS’s business model Is 4 Vertically integrated across product portf
Slide 12: Key facts
Key facts #1 Global and Domestic leadership in 55+ APIs across 14 diverse therapeutic 88% Revenue from regulatory markets key products segments. 3,120 KL Reactor volume 1,500+ Employees 75+ Countries where we have a presence 120+ DMFs filed till date 100+ Scientists in R&D 800+ Customers www.smsphar
Slide 13: Ready for the next stage of growth
Ready for the next stage of growth… 1989-2011 2011-2017 2017-2022 2022-2025 • Became the world’s largest • Started a green field project • Demerger of SMS • Launched Asia's biggest manufacturer of Ranitidine API in Vizag to build an API facility in more than 100 lifesciences to unlock operational ef
Slide 14: Diversified across therapeutic areas and products to mitigate risk
Diversified across therapeutic areas and products to mitigate risk Therapeutic areas Category H1FY26 revenue share Anti-inflammatory High-volume 20% Anti Retro Viral (ARV) High-volume 23% Anti-diabetic High-value 24% Anti-migraine High-value 11% Anti-ulcer High-volume 5% Anti-erectile dysfunction Hi
Slide 15: State-of-the-art, accredited manufacturing facilities
State-of-the-art, accredited manufacturing facilities HYDERABAD VIZAG Manufacturing capacity: 120 KL for niche small-volume Manufacturing capacity: 3,000 KL for niche large-volume molecules molecules Regulatory approvals: USFDA, EUGMP, KFDA, CDSCO, PMDA Regulatory approvals: USFDA, KFDA, CDSCO, PMDA
Slide 16: Sustained gross margin expansion across multiple cycles
Sustained gross margin expansion across multiple cycles Gross margin expansion in a competitive generics landscape GROS S MARGIN ( E X. MANUFACTURING E XP E NS E S ) ( % ) Enabled by • High-value product mix supports better realisation 47% per MT 44% 43% 40% 40% 40% • Scalable manufacturing enables
Slide 17: High-value portfolio ensures high quality of cash flows
High-value portfolio ensures high quality of cash flows Stable and majority share of high-value product portfolio OCF conversion on par with leading API companies (10 Year avg) SHARE OF HIGH-VALUE PRODUCTS (%) OCF CONVERSION RATIO* 47% 82% 44% 44% 42% 40% 72% 66% 68% 62% 30% FY21 FY22 FY23 FY24 FY25
Slide 18: Manufacturing facilities enables scale and leadership position
Manufacturing facilities enables scale and leadership position • Rapid scale-up of APIs enabled by decades of in-house technical expertise • Strong first-to-market capabilities in key therapeutic areas • Operating leverage drives cost efficiency, enabling competitive pricing and faster market share
Slide 19: Strategic R&D focus enables margin protection
Strategic R&D focus enables margin protection Stable gross margins despite price erosion New product development Large technical team Added 20 new products 120+ DMFs filed till date since FY22 Process optimisation Focus on commercialisation 35+ process patents 100+ scientists Strong partnerships JV
Slide 20: Established, well balanced and diversified customer portfolio
Established, well balanced and diversified customer portfolio REVENUE BY LOCATION, Q2FY26 REVENUE BY CUSTOMER TYPE, Q2FY26 REVENUE BY CUSTOMER SIZE, Q2FY26 15% 26% 24% 41% 41% 27% 9% 59% 35% 24% Europe Asia (Ex. India) North America Large pharma Mid-to-small pharma Largest Top 2-10 customers Remaini
Slide 21: Long standing relationship with marquee customer base
Long standing relationship with marquee customer base www.smspharma.com 20
Slide 22: Experienced BoD to deliver on strategy
Experienced BoD to deliver on strategy Shri. Ramesh Babu Potluri Shri. Vamsi Krishna Potluri Shri. Shravan Kudravallii Shri. Sarvepalli Srinivas Chairman & Managing Director Executive Director Independent Director Director Shri. Dr. Suresh Kumar Shri. Sunkara Venkata Satya Smt. Shanti Sree Bolleni S
Slide 23: Way Forward
03 WAY FORWARD www.smspharma.com
Slide 24: Ramp-up of high-volume product portfolio
Ramp-up of high-volume product portfolio Targeting 1.75 average net asset turnover levels over next 2-3 years Asset turnover (Times) 1.75 1.55 Now* Target * Annualised figure based on H1FY26 numbers Key drivers • Anti-inflammatory: Aspiring to become the #1 player in the world • Strategic partnershi
Slide 25: Backward integration to improve quality of earnings
Backward integration to improve quality of earnings Low price risk Culture of learning by Cost-competitive Protection against doing structure market fluctuations Strengthens core R&D Increasing margins capabilities & reliability Several products where we have backward Ability to backward integrate f
Slide 26: Strengthening product portfolio 2x
Strengthening product portfolio 30 2x DMF, CEP and dossier R&D investment to double filings targeted over next over next 15 months 30 months PRODUCT PIPELINE Lab Scale Development & Commercial Validation Completed • Anti-inflammatory • Anti-diabetic • Anti-depressant Lab scale development and valida
Slide 27: Launch of major Capex projects to support strategy
Launch of major Capex projects to support strategy Capex project mix Capex oriented towards: • Capacity expansion for existing APIs • Building capacities for new 11% API pipeline • Land acquisition in process 280 crore ₹ for a greenfield project Strategic focus: Capex spend to be completed in Nov 20
Slide 28: Historical Financial Performance
04 HISTORICAL FINANCIAL PERFORMANCE www.smspharma.com
Slide 29: Consolidated P&L statement
Consolidated P&L statement Particulars (₹ Cr) Q2FY26 Q1FY26 YoY Growth (%) Q2FY25 QoQ Growth (%) H1FY26 H1FY25 YoY Growth (%) Revenue from Operations 242.43 196.75 23% 196.05 24% 438.48 361.20 21% COGS 165.55 137.68 20% 130.70 27% 296.26 243.85 21% Gross Profit 76.88 59.07 30% 65.35 18% 142.22 117.3
Slide 30: Consolidated balance sheet
Consolidated balance sheet Particulars (₹ Cr) H1FY26 FY25 FY24 FY23 Particulars (₹ Cr) H1FY26 FY25 FY24 FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant and Equipment Equity Share Capital 9.37 8.87 8.47 8.47 513.93 530.85 434.19 409.50 Other Equity 719.98 630.77 527.86 45
Slide 31: Consolidated cash flow statement
Consolidated cash flow statement Particulars (₹ Cr) H1FY26 FY25 FY24 FY23 Cash flow from operating activities Profit before tax 58.41 92.34 66.11 5.35 Cash generated from operations 52.33 101.54 65.52 27.05 Cash flow from operating activities 42.32 81.71 50.12 22.45 Cash flow from investing activiti
Slide 32: Thank You
THANK YOU For further information contact: Mr. Thirumalesh Tumma SMS Pharmaceuticals Limited E: complianceofficer@smspharma.com Mr. Aditya Dutta Eqsponent partners E: smspharma.ir@eqsponent.com www.smspharma.com
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