SMS Pharma FY26 PAT rises 48% to ₹102 Cr; margins expand

SMS Pharmaceuticals has reported a 48% year-on-year increase in its standalone net profit to ₹101.98 crore for the fiscal year ended March 31, 2026. Profit After Tax (PAT), including the share of profit from associate company VKT Pharma, stood at ₹102 crore. The company’s revenue from operations grew 13% to ₹886.87 crore, supported by strong performance across key Active Pharmaceutical Ingredients (APIs) and a diversified product portfolio. The board has recommended a final dividend of ₹0.40 per equity share for FY26.

Financial Performance

The margin expansion was driven by backward integration efforts and strategic product mix optimization, particularly in anti-inflammatory and ARV APIs. EBITDA for the year increased 23% to ₹171.28 crore, with EBITDA margins expanding by 155 basis points to 19%. Gross profit rose to ₹302.83 crore, with gross margins at 34%. The associate company, VKT Pharma, contributed ₹13.99 crore to the FY26 PAT, compared to ₹1.74 crore in the prior year. The following table summarises the full-year financial highlights:

Metric:	FY 2025-26 (₹ in Cr)	FY 2024-25 (₹ in Cr)	YoY Growth (%)
Revenue from Operations	886.87	782.75	13%
Total Income	895.22	788.97	—
Gross Profit	302.83	264.70	14%
EBITDA	171.28	139.00	23%
EBITDA Margin (%)	19%	18%	+155 bps
PBT	116.63	92.34	26%
Reported PAT	87.99	67.40	31%
PAT after Associate Profit	101.98	69.14	47%
Earnings Per Share (₹)	11.15	8.16	37%

Q4 Performance

For the fourth quarter, revenue from operations stood at ₹237.95 crore compared to ₹248.20 crore in the same period last year, a decline of 4% YoY. Despite the revenue dip, Q4 PAT increased 61% YoY to ₹32.71 crore, with PAT margins expanding 556 basis points to 14%. EBITDA for the quarter was ₹39.90 crore, with margins at 17%. The key quarterly metrics are presented below:

Metric:	Q4 FY26 (₹ in Cr)	Q4 FY25 (₹ in Cr)	YoY Growth (%)
Revenue from Operations	237.95	248.20	-4%
Total Income	240.52	249.62	—
Gross Profit	81.29	76.46	6%
Gross Margin (%)	34%	31%	+336 bps
EBITDA	39.90	40.82	-2%
EBITDA Margin (%)	17%	16%	+32 bps
Reported PAT	20.96	20.09	4%
PAT after Associate Profit	32.71	20.32	61%
Earnings Per Share (₹)	3.58	2.40	49%

Strategic Initiatives and Outlook

Management stated that FY26 was a year of rebuilding the foundation for the next phase of growth, with significant investments made in backward integration, product registrations, and capacity expansion. The company filed 12 DMFs and CEPS during FY26 and targets 10 additional filings in FY27. The brownfield expansion project, with a total planned investment of approximately ₹280 crore, is progressing as planned with ₹130 crore already invested. This expansion includes multiple high-margin molecules expected to generate profitability above the current portfolio average, with meaningful contributions expected from FY28.

The company is also developing capabilities in peptides and CDMO initiatives, which are expected to contribute from FY29 onwards. Regarding the outlook for FY27, management guided for 15% revenue growth while aiming to further improve upon the FY26 EBITDA margin of 20%. The company targets reaching its historical high EBITDA margin of 22% in the coming years. The ₹280 crore capacity expansion programme is on track for completion by FY27. The company is well positioned to deliver over 15% revenue growth with EBITDA margins in the range of 20% in FY27.

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 has initiated the Investor Education and Protection Fund Authority's (IEPFA) "Second 100 Days Campaign- Saksham Niveshak" as part of its compliance and investor protection efforts. The campaign, which runs from April 1, 2026, to July 9, 2026, aims to reach out to shareholders who have not claimed their dividends or need to update their Know Your Customer (KYC) details.

The company has published newspaper advertisements in The Financial Express (English) and Nava Telangana (Telugu) to inform shareholders about this initiative. The campaign specifically targets shareholders with issues related to unclaimed dividends and shares, encouraging them to take necessary action to prevent their dividends and shares from being transferred to the IEPFA.

Campaign Objectives and Shareholder Action

The primary objective of the Saksham Niveshak campaign is to assist shareholders in updating their essential details and claiming their rightful dues. Shareholders are requested to update the following information:

KYC requirements
Bank mandates
Nominee details
Contact information

Shareholders who hold shares in demat form are advised to approach their Depository Participants where they maintain their demat accounts for updating their KYC requirements. Those with physical share holdings or other queries can contact the company's Registrar and Transfer Agent.

Contact Information for Shareholders

Shareholders requiring assistance or wishing to claim unclaimed dividends and update their details can reach out to the designated authorities:

Entity	Contact Details
Registrar and Transfer Agent	Aarthi Consultants Private Limited
Address	1-2-285, Domalguda, Hyderabad - 500029
Phone	040-27638111
Email	info@arthiconsultants.com

The information regarding the campaign has been uploaded on SMS Pharmaceuticals Limited 's website at www.smspharma.com , ensuring easy access for all stakeholders.

Company Details

SMS Pharmaceuticals Limited, with its registered and corporate office located at Plot No. 72, H. No. 8-2-334/3 & 4, Road No. 5, Opp. SBI Executive Enclave, Banjara Hills, Hyderabad - 500 034, Telangana, operates under the Corporate Identity Number L24239TG1987PLC008066. The company's shares are listed on BSE Limited with the security code 532815 and trading symbol SMSPHARMA.

Thirumalesh Tumma, Company Secretary & Compliance Officer of SMS Pharmaceuticals Limited, issued the notice on behalf of the Board of Directors, emphasizing the company's commitment to investor education and protection.