Sanjivani Parenteral Reports 14.5% Revenue Decline in Q2 FY26, Expects Recovery with New Ventures

Sanjivani Parenteral Limited , a WHO-GMP certified pharmaceutical company specializing in injectables and oral solids, reported a 14.5% year-on-year decline in revenue for Q2 FY26. The company's revenue stood at INR 15.50 crores, down from INR 18.10 crores in the same quarter last year.

Key Highlights

Revenue decline primarily attributed to external disruptions in key export markets
Local unrest in Nepal affected orders worth INR 1.00 crore
Tighter FDA scrutiny in Latin America slowed clearances and dispatches
EBITDA at INR 2.40 crores, down 25.6% year-on-year
EBITDA margin contracted to 15.5% from 17.9% in Q2 FY25
Profit after tax at INR 1.60 crores, down 28.5% year-on-year

Segment-wise Performance

Segment	Revenue (INR Crores)	YoY Growth
Injectable	9.30	+2.4%
Oral	4.90	-35.4%
Nutraceutical	1.20	N/A

Exports constituted 81.6% of the total revenue, with core markets of CIS, Middle East and Africa, and Latin America accounting for INR 12.60 crores.

Future Outlook

Despite the setback in Q2, Sanjivani Parenteral remains optimistic about its future prospects:

SPL Infusion Venture: The company expects to start booking revenue from its SPL Infusion venture in Q3 FY26.
Full-Year Projection: Management projects a minimum 10% growth for the full year FY26.
FY27 Target: The company is targeting INR 150.00 crores revenue next year, including contributions from the new IV plant.
Diversification Strategy: Sanjivani is diversifying its product portfolio, customer profile, and geographical presence to mitigate risks.
Alevia Healthcare: The company's nutraceutical venture in Europe is expected to contribute INR 1.00-1.50 crores to the bottom line in FY26, with projections of INR 3.00-3.50 crores for FY27.

Sanjivani Parenteral's Chairman and Managing Director, Mr. Ashwani Khemka, emphasized the company's focus on quality and regulatory compliance. He stated, "Our company is on track, and we'll do continuous upgradation in our facilities and capex and training of the people. We face audits very frequently. For the last 10 years, we have not had a single failure or a single market complaint in the world."

The company remains cautiously optimistic about its growth prospects, leveraging its diverse product portfolio, efficient supply chain management, and flexible approach to market requirements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.43%	-5.64%	-8.72%	-13.50%	-33.18%	+1,849.69%

Sanjivani Parenteral Limited has announced its financial results for the second quarter, revealing a mixed performance with a decline in revenue but maintaining its EBITDA margin.

Revenue and Profit

The pharmaceutical company reported a quarterly revenue of Rs. 155.00 crore, marking a 14.5% year-on-year decline. The company's Profit After Tax (PAT) also decreased by 28.6% year-on-year to Rs. 16.40 crore. Despite the revenue contraction, Sanjivani Parenteral managed to maintain its EBITDA margin at 15.5%.

Segment Performance

The company's performance varied across different segments:

Injectables Segment: Showed resilience with a 2.4% year-on-year growth.
Oral Segment: Experienced a significant decline of 35.4% year-on-year, attributed to shipment challenges.

Export Contribution

Exports continued to be a major contributor to Sanjivani Parenteral's business, accounting for 81.6% of the total revenue. The company's core markets include the CIS region, Middle East, Africa, and Latin America.

Financial Highlights

Particulars (Rs. in crore)	Q2 Current	Q2 Previous	YoY Change
Total Income	156.60	185.20	-15.4%
Gross Profit	53.30	76.20	-30.1%
Gross Margin (%)	34.4%	42.0%	-760 bps
EBITDA	24.10	32.40	-25.6%
EBITDA Margin (%)	15.5%	17.9%	-240 bps
PAT	16.40	23.00	-28.6%
PAT Margin (%)	10.5%	12.4%	-190 bps

Half-Yearly Performance

For the first half of the current fiscal year, Sanjivani Parenteral reported:

Total income of Rs. 335.90 crore, down 4.1% from Rs. 350.40 crore in the same period of the previous year.
PAT of Rs. 33.70 crore, a decrease of 16% compared to Rs. 40.10 crore in the same period last year.

The company's ability to maintain its EBITDA margin at 15.5% despite the revenue decline suggests effective cost management strategies. However, the significant drop in the oral segment's performance due to shipment challenges indicates potential areas for improvement in the company's supply chain and logistics operations.

As Sanjivani Parenteral navigates through these challenges, investors and stakeholders will be keen to see how the company addresses the issues in its oral segment and capitalizes on the growth in its injectables business. The company's strong export presence in key markets may provide a buffer against domestic market fluctuations, but managing shipment challenges will be crucial for future growth.