SMS Pharmaceuticals Reports Strong Q3FY26 Results with 21% Revenue Growth
SMS Pharmaceuticals Limited reported strong Q3FY26 results with revenue of ₹210.45 crore, up 21% YoY, driven by volume growth and market share gains. EBITDA grew 31% YoY to ₹43.65 crore while PAT increased 29% YoY to ₹23.47 crore. Nine-month performance showed revenue of ₹648.92 crore with exceptional PAT growth of 42% YoY. The company achieved its full-year target of 10 filings ahead of schedule and remains on track with its ₹280 crore capacity expansion programme, maintaining confidence in delivering ~20% revenue growth for FY26.
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SMS Pharmaceuticals Limited has delivered a strong third quarter performance for FY26, demonstrating robust growth across key financial metrics. The diversified pharmaceutical company, specializing in Active Pharmaceutical Ingredients (API) and complex intermediates, reported revenue from operations of ₹210.45 crore for Q3FY26, representing a significant 21% year-on-year increase. The growth was primarily driven by strong demand, volume ramp-up in key products, and market share gains across key APIs in a stable pricing environment.
Financial Performance Highlights
The company's operational efficiency was evident in its margin performance, with EBITDA growing 31% YoY to ₹43.65 crore and maintaining a healthy margin of 21%. Profit After Tax (PAT) showed strong momentum, increasing 29% YoY to ₹23.47 crore, with PAT margin improving to 11%. The earnings per share (EPS) for the quarter stood at ₹2.59, up 20% from ₹2.15 in the corresponding quarter of the previous year.
| Financial Metric | Q3FY26 | Q3FY25 | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | ₹210.45 crore | ₹173.35 crore | 21% |
| EBITDA | ₹43.65 crore | ₹33.21 crore | 31% |
| EBITDA Margin | 21% | 19% | 158 bps |
| PAT | ₹23.47 crore | ₹18.24 crore | 29% |
| PAT Margin | 11% | 11% | 63 bps |
| EPS | ₹2.59 | ₹2.15 | 20% |
Nine-Month Performance Shows Sustained Growth
For the nine-month period ended December 31, 2025, SMS Pharmaceuticals demonstrated consistent performance with revenue from operations reaching ₹648.92 crore, reflecting 21% YoY growth. The nine-month PAT showed exceptional growth of 42% YoY to ₹69.27 crore, with EPS improving 32% to ₹7.64. EBITDA for the nine-month period stood at ₹131.38 crore, up 34% YoY, with margins improving to 20%.
Therapeutic Area Performance
The company's diversified portfolio across therapeutic areas showed mixed performance during the nine-month period. Anti Retro Viral (ARV) segment emerged as the strongest performer with 85% YoY growth, contributing ₹182.04 crore or 28% of total revenue. Anti-inflammatory segment maintained steady growth at 18% YoY, contributing ₹128.29 crore. However, some segments faced headwinds, with anti-diabetic revenue declining 6% YoY to ₹122.77 crore, though it remained a significant contributor at 19% of total revenue.
| Therapeutic Area | 9MFY26 Revenue | % of Total | YoY Growth (%) |
|---|---|---|---|
| Anti Retro Viral (ARV) | ₹182.04 crore | 28% | 85% |
| Anti-inflammatory | ₹128.29 crore | 20% | 18% |
| Anti-diabetic | ₹122.77 crore | 19% | -6% |
| Anti-migraine | ₹69.75 crore | 11% | -3% |
| Anti-epileptic | ₹36.23 crore | 6% | 85% |
Strategic Initiatives and Capacity Expansion
The company achieved a significant milestone by completing its full-year target of 10 DMF/CEP and dossier filings ahead of schedule, strengthening its future growth pipeline. Management indicated plans for approximately 20 submissions over the next two years to sustain growth momentum. The ₹280 crore capacity expansion programme remains on track for completion by FY27, which will enhance capacity for existing APIs, build capacity for new product pipeline, and expand R&D capabilities.
Management Outlook
Executive Director P. Vamsi Krishna expressed confidence in the company's trajectory, highlighting the successful backward integration initiatives that helped sustain margin resilience and strengthened the company's position in regulated markets, particularly the US. The company remains on track to deliver approximately 20% revenue growth for FY26 with EBITDA margins above 20%, supported by its diversified product portfolio, strong product pipeline, and disciplined execution approach.
Historical Stock Returns for SMS Pharmaceuticals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.04% | +6.17% | +18.50% | +56.01% | +95.03% | +195.83% |
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