Senores Pharmaceuticals Limited showcased robust financial performance in Q3FY26, delivering strong growth across all business segments while maintaining healthy profitability margins. The pharmaceutical company's diversified approach across regulated markets, emerging markets, and branded generics continues to drive sustainable expansion.

Strong Financial Performance Across Segments

The company reported consolidated revenue of INR175 crores for Q3FY26, representing a substantial 64% year-on-year growth. This broad-based growth was complemented by an impressive 86% increase in EBITDA to INR54 crores, with margins expanding by 360 basis points to 30.9%.

For the nine-month period, the company achieved revenue of INR474 crores (65% growth) with EBITDA reaching INR138 crores, reflecting an 87% year-on-year increase. PAT more than doubled to INR84 crores with margins improving to 17.7%.

Regulated Markets Drive Growth Momentum

The regulated markets segment emerged as the primary growth driver, contributing INR113 crores in Q3FY26 with 60.5% year-on-year growth. For nine months, this segment generated approximately INR310 crores in revenue, supported by strategic portfolio expansion and enhanced market penetration.

The company's ANDA portfolio has experienced remarkable growth, expanding from 12 approved ANDAs in December 2024 to 46 approved ANDAs by December 2025. This portfolio encompasses more than 137 ANDA product strengths, providing substantial commercialization opportunities.

The business maintains a balanced revenue mix with approximately 55% contribution from own products and 45% from CDMO-CMO operations, with expectations of shifting toward 60-40% in favor of own products by year-end.

Strategic Acquisition Enhances Manufacturing Capabilities

Senores completed the acquisition of 75% stake in Apnar Pharma, a US FDA-approved facility with expansion-ready infrastructure. This strategic move provides immediate access to regulated markets including the US, UK, and Canada while adding five approved ANDAs to the portfolio.

The facility enables geographic diversification of manufacturing operations and provides flexibility to shift production of select products from the US to India, optimizing cost structures while maintaining regulatory compliance.

Emerging Markets Show Significant Improvement

The emerging markets segment demonstrated strong momentum with Q3FY26 revenue of INR38 crores, marking 47.5% year-on-year growth. More importantly, the segment achieved its highest-ever quarterly performance while becoming cash-flow positive.

During the quarter, the company received approval for 56 new products, bringing the total registered portfolio to 450 products with over 850 products currently under registration. The business has improved its per-unit realization to approximately INR2, supporting enhanced profitability.

India Business Accelerates Growth

The branded generics business in India continued its impressive trajectory with Q3FY26 revenue of INR10.5 crores, representing over 6x year-on-year growth. For nine months, this segment generated INR31 crores, growing more than 7x compared to the previous year.

Outlook and Strategic Priorities

Management maintains confidence in achieving FY26 targets of 50% topline growth and 100% PAT growth. The company expects to launch all 28 approved ANDAs within the next six to eight quarters, while approximately 10 products from the 22 ANDAs under development are anticipated to launch within the same timeframe.

For FY27, management projects emerging markets revenue of INR170-180 crores and branded generics revenue of INR40-50 crores, with potential for INR80+ crores in subsequent years. The company's strong pipeline visibility and diversified manufacturing capabilities position it well for sustained growth across all business segments.

Senores Pharmaceuticals Limited has filed its quarterly monitoring agency report for Q3FY26, providing a comprehensive update on the utilization of proceeds from its ₹500.00 crore Initial Public Offering. The report, prepared by CARE Ratings Limited as the monitoring agency, was reviewed by the Audit Committee and approved by the Board of Directors on January 20, 2026.

IPO Proceeds Utilization Overview

The monitoring report reveals that as of December 31, 2025, the company has utilized ₹362.12 crore out of the total ₹500.00 crore raised through the IPO, leaving ₹137.88 crore unutilized. The IPO was conducted from December 20, 2024, to December 24, 2024, comprising entirely of fresh equity shares.

Objective-wise Fund Deployment

The company's IPO proceeds were allocated across seven specific objectives, with varying levels of completion:

Manufacturing Facility Investment: The largest allocation of ₹107.00 crore for investment in subsidiary Havix to establish a sterile injections manufacturing facility in Atlanta shows ₹6.98 crore utilized, with ₹100.02 crore remaining for the ongoing project.

Debt Repayment Objectives: Two debt repayment objectives totaling ₹93.30 crore have been fully completed. The company successfully repaid ₹73.10 crore of its own borrowings and ₹20.20 crore of subsidiary borrowings, both completed in Q1FY26.

Working Capital Requirements: For funding working capital needs, ₹43.26 crore was allocated to the company itself, with ₹42.21 crore utilized, leaving ₹1.05 crore unutilized. An additional ₹59.48 crore was designated for subsidiaries SPI and Ratnatris, with ₹56.88 crore deployed and ₹2.60 crore remaining.

Strategic Initiatives and General Corporate Purposes

The company allocated ₹154.77 crore for inorganic growth, acquisitions, and general corporate purposes, utilizing ₹128.53 crore with ₹26.23 crore remaining. The monitoring agency noted that ₹61.32 crore was used for general corporate purposes, while ₹67.21 crore supported strategic initiatives.

Implementation Delays and Compliance

The monitoring agency reported minor delays in two objectives that were originally scheduled for completion by March 2025 but were completed in Q1FY26:

• Subsidiary borrowing repayment: Delayed by 25 days due to bank negotiations to avoid prepayment penalties
• Subsidiary working capital funding: Delayed by 43 days based on subsidiary requirements

Both delays were approved by the management committee with a three-month extension granted on March 27, 2025.

Deployment of Unutilized Funds

The unutilized amount of ₹137.88 crore has been strategically deployed in fixed deposits and bank accounts to generate returns:

The total earnings from these investments amount to ₹8.23 crore as accrued interest, bringing the total value to ₹146.11 crore as of December 31, 2025.

Regulatory Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency, confirmed no material deviations from the original offer document objectives. All government and statutory approvals related to the objectives have been obtained where applicable. The report emphasizes that the company maintains flexibility in fund utilization as outlined in the original offer document, subject to regulatory compliance.

The monitoring agency noted that funds transferred to foreign bank accounts resulted in comingling, requiring reliance on management declarations and chartered accountant certificates to ascertain proper utilization. The report maintains that all utilizations align with the disclosed objectives in the offer document.

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