Innova Captab Limited has unveiled an ambitious growth strategy, aiming for a 25% revenue increase through expansion of its Contract Development and Manufacturing Organization (CDMO) business and entry into regulated markets. The company plans to invest ₹300 crore in capital expenditure for capacity addition and research & development, signaling a strong commitment to future growth.

Growth Strategy Highlights

• CDMO Expansion: Innova Captab aims to leverage its CDMO capabilities to drive growth.
• Market Entry: The company plans to enter regulated markets to expand its global footprint.
• Backward Integration: Strengthening API (Active Pharmaceutical Ingredients) production capabilities.
• Export Focus: Scaling up formulation exports to capture international market share.
• Oncology Portfolio: Expanding product offerings in the high-value oncology segment.
• Margin Enhancement: Pursuing vertical integration and global partnerships to improve profitability.

Q2 Financial Performance

Innova Captab has reported robust financial results for the second quarter, demonstrating the effectiveness of its growth initiatives:

Key Financial Highlights

• Strong Revenue Growth: The company achieved a 19.50% year-on-year increase in revenue, reaching ₹380.40 crore in Q2 FY26.
• EBITDA Performance: EBITDA grew by 8.00% to ₹56.10 crore, with a margin of 14.70%.
• Profit After Tax: PAT stood at ₹29.70 crore, with a margin of 7.80%.

Management Commentary

Mr. Vinay Lohariwala, Managing Director of Innova Captab Limited, commented on the results: "Our strategic initiatives continue to deliver measurable outcomes, as evidenced by YoY revenue growth of 19.5% both in Q2 and H1 FY26. We witnessed healthy volume growth, underscoring the sustained demand momentum and operational efficiency achieved through our scale-up efforts."

Operational Highlights

• Successful inspection of the Cephalosporin plant in Baddi by the UK-MHRA.
• Jammu facility inspection by the State Service of Ukraine on Medicines and Drugs Control (SMDC).
• These regulatory milestones underscore Innova Captab's adherence to global quality standards and reinforce its presence in key international markets.

Future Outlook

With multiple growth levers in motion, including substantial room for scale-up, geographic diversification, and a robust product pipeline, Innova Captab appears well-positioned to sustain its growth trajectory. The company's focus on CDMO expansion, entry into regulated markets, and strategic investments in capacity and R&D aligns with its ambitious revenue growth target of 25%.

Investors and industry observers will be watching closely to see how Innova Captab's growth strategy unfolds in the coming quarters, particularly in light of its recent strong financial performance and clear strategic direction.

Innova Captab Limited , a prominent player in the pharmaceutical sector, has announced a significant milestone for its manufacturing facility in Jammu. The State Service of Ukraine on Medicines and Drugs Control (SMDC) has successfully completed a Good Manufacturing Practice (GMP) inspection at the facility, with the working group recommending the issuance of a GMP compliance certificate.

Key Highlights

• Facility Location: Khasra No. 11, SIDCO Industrial Complex, Phase-II Ghatti, Kathua, Jammu & Kashmir, India
• Inspecting Authority: The State Service of Ukraine on Medicines and Drugs Control (SMDC)
• Certification: GMP compliance certificate recommendation
• Significance: SMDC is a participating authority under the Pharmaceutical Inspection Co-operation Scheme (PIC/S)

Implications for Innova Captab

The recommendation for GMP compliance certification carries substantial weight for Innova Captab's global operations. Here's why this development is crucial:

1. Enhanced Global Credibility: The PIC/S certification positions the Jammu facility as an internationally compliant manufacturing site.
2. Market Access: It may facilitate Innova Captab's access to regulated markets, potentially opening up new business opportunities.
3. Quality Assurance: The certification serves as a testament to the high manufacturing standards maintained at the Jammu facility.

Regulatory Compliance

Innova Captab has made this disclosure in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and potential investors are kept informed about significant developments that could impact the company's operations and market position.

Company Overview

The GMP compliance certificate recommendation from a PIC/S participating authority marks a significant step for Innova Captab in strengthening its position in the global pharmaceutical market. As the company awaits the final issuance of the certificate, stakeholders will be keenly watching how this development translates into tangible benefits for Innova Captab's international operations and market presence.