SMS Pharmaceuticals reports no new share encumbrances in FY26

SMS Pharmaceuticals has confirmed that no members of its promoter and promoter group created any new encumbrances on shares during the financial year ended March 31, 2026. In a disclosure submitted to the stock exchanges, the company stated that no shares were pledged directly or indirectly during this period, other than those already disclosed in previous financial years. The filing was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The company provided details of the current equity shares already in encumbrance, which remain unchanged from previous disclosures. The total pledged shares are distributed among three key entities within the promoter group.

Breakdown of Pledged Shares

The following table outlines the equity shares held and the corresponding number of shares pledged by each member of the promoter group:

Sl. No.	Name of the Promoter	Equity share held	Equity shares pledged
1.	Mrs. Hima Bindu Potluri	1,50,08,840	30,00,000
2.	M/s. Potluri Infra Projects LLP	88,46,420	73,46,420
3.	Potluri Laboratories Private Limited	11,20,320	11,20,320

M/s. Potluri Infra Projects LLP holds the highest proportion of pledged shares relative to its total holding, with 73,46,420 shares encumbered out of 88,46,420 shares held. Potluri Laboratories Private Limited has its entire holding of 11,20,320 shares pledged. Mrs. Hima Bindu Potluri has pledged 30,00,000 shares out of her total holding of 1,50,08,840 shares.

The disclosure was signed by Ramesh Babu Potluri on behalf of the Promoter & Promoter Group. SMS Pharmaceuticals requested the exchanges to place the information on record.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.19%	-0.16%	-4.87%	+24.64%	+52.32%	+121.86%

SMS Pharmaceuticals Limited reported a 13% increase in revenue to INR887 crores for the fiscal year ended March 31, 2026, driven by strong growth in its anti-inflammatory and anti-retroviral (ARV) segments. The company’s profit after tax (PAT) rose 47% to INR102 crores, supported by margin expansion and a INR14 crores contribution from associate company VKT Pharma. Management attributed the performance to backward integration, a favorable product mix, and operating leverage, while guiding for 15% revenue growth in FY27.

Financial Performance

For the fourth quarter of FY26, revenue stood at INR238 crores. EBITDA for the quarter was INR40 crores with margins at 17%, while PAT was INR33 crores. The full-year EBITDA increased 23% to INR171 crores, with margins improving to 20%. Gross profit for FY26 grew 14% to INR303 crores, maintaining healthy gross margins of 34%.

Metric	Q4 FY26	FY26
Revenue	INR238 crores	INR887 crores
EBITDA	INR40 crores	INR171 crores
EBITDA Margin	17%	20%
PAT	INR33 crores	INR102 crores

Strategic Initiatives and Outlook

The company is progressing with a brownfield expansion project involving a total investment of approximately INR280 crores, of which INR130 crores has been invested. This includes increasing ibuprofen capacity from 500 metric tons per month to 800 metric tons per month, expected to be completed by March 2027. Management anticipates incremental revenues from these expansions starting FY28. Additionally, the company filed 12 DMFs and CEPS during FY26 and targets 10 filings each in FY27 and FY28.

SMS Pharmaceuticals is also developing capabilities in peptides and CDMO initiatives, expecting meaningful contributions from these platforms from FY29 onwards. The company’s installed capacity is projected to reach 800 metric tons per month post-expansion, with high utilization expected by FY28. Management expressed optimism about exceeding the 15% revenue growth guidance if external logistics conditions stabilize.