Windlas Biotech , a prominent player in the Indian pharmaceutical industry, has reported a robust 19% year-on-year revenue growth for both Q2 FY26 and H1 FY26. The company's performance highlights its continued momentum in the market, driven by strong contributions across its business verticals.

Financial Highlights

• Revenue from operations stood at INR 222.00 crores for Q2 FY26 and INR 432.00 crores for H1 FY26, both representing a 19% year-on-year growth.
• Earnings per share (EPS) for H1 FY26 reached INR 16.91, reflecting a 21% year-on-year increase.
• EBITDA was reported at INR 29.00 crores for Q2 FY26 and INR 55.00 crores for H1 FY26.
• Gross margins improved by 68 basis points in Q2 FY26 and 70 basis points in H1 FY26 year-on-year.
• The company maintained a strong liquidity position of INR 237.00 crores.

Business Vertical Performance

ESOP 2025 Scheme

Windlas Biotech announced the implementation of an Employee Stock Option Plan (ESOP) 2025 scheme. Key details include:

• Non-cash expenditure impact of INR 12.00 million in Q2 FY26.
• Covers approximately 100 employees across various management levels.
• Exercise price set at INR 5.00 per share.

Operational Updates

• The injectable facility has gained further customer approvals, with commercial supplies ramping up across both CDMO and Trade Generics verticals.
• Plant-6 expansion remains on track for commissioning within FY26, focusing primarily on oral solid dosage forms.
• The company paid a dividend of INR 12.20 crores, equivalent to INR 5.80 per share, for FY25.

Management Commentary

Hitesh Windlass, Managing Director of Windlas Biotech, commented on the results: "We are pleased to report another strong quarter, delivering a revenue increase of 19% in both Q2 FY26 and H1 FY26. The growth was driven by steady and balanced contributions across our three business verticals, with quality standards remaining at the core of our strategy."

Komal Gupta, CEO and CFO, added: "Backed by strategic initiatives, disciplined execution, and a focus on sustainable value creation, the company recorded its 11th consecutive quarter of record revenue performance. We continue to strengthen our core capabilities and enhance efficiencies."

Windlas Biotech's consistent performance, coupled with its strategic initiatives in capacity expansion and employee retention, positions the company well for sustained growth in the competitive pharmaceutical market. The management's focus on quality, diversification across business verticals, and investment in human capital through the ESOP scheme demonstrates a comprehensive approach to long-term value creation for all stakeholders.

Windlas Biotech Limited , a leading player in the domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) industry, is actively pursuing stronger export growth and margin expansion through a series of strategic initiatives.

Leveraging FDA-Compliant Facilities for Export Growth

The company is capitalizing on its U.S. FDA-compliant facilities to drive export growth. This move is expected to open up new opportunities in the highly regulated U.S. market, potentially leading to increased revenue from international operations.

Expanding CDMO Partnerships

Windlas Biotech is forming new partnerships in the Contract Development and Manufacturing Organization (CDMO) segment. These collaborations are likely to enhance the company's capabilities and expand its client base, contributing to overall growth.

Diversifying Product Portfolio

The company is expanding its capabilities across various areas:

1. Nutrition
2. Injectable products
3. Contract manufacturing

This diversification strategy aims to broaden Windlas Biotech's product offerings and tap into new market segments.

Focus on Margin Expansion

Windlas Biotech is implementing two key strategies to improve its profit margins:

1. High-value product mix: By focusing on more complex and specialized products, the company aims to increase its average revenue per unit.
2. Integration with global pharmaceutical supply chains: This move is expected to optimize costs and improve operational efficiency.

Financial Performance

The company's strategic initiatives appear to be yielding positive results, as evidenced by its recent financial performance:

The company has reported its 11th consecutive quarter of record revenue, with a strong performance across all three business verticals: Generic Formulations CDMO, Trade Generics and Institutional, and Exports.

Vertical Performance

1. Generic Formulations CDMO:

   • H1 FY26 revenue: ₹3,206 crore (up 17.8% YoY)
   • Contributed 74% to consolidated revenue

2. Trade Generics & Institutional:

   • H1 FY26 revenue: ₹960 crore (up 24.7% YoY)
   • Contributed 22% to consolidated revenue

3. Exports:

   • H1 FY26 revenue: ₹159 crore (up 23.4% YoY)
   • Contributed 4% to consolidated revenue

Infrastructure Investments

Windlas Biotech continues to strengthen its manufacturing infrastructure:

• The Plant-2 extension, operational since Q4 FY25, is now contributing significantly to the business.
• The company's Injectables facility has gained further customer approvals, with commercial supplies ramping up across both CDMO and Trade Generics verticals.
• Plant 6 expansion is progressing well and is on track for commissioning within FY26.

Management Commentary

Hitesh Windlass, Managing Director of Windlas Biotech, commented on the results: "Despite the subdued industry volume growth, we are pleased to report another strong quarter, delivering a revenue increase of 19% in both Q2 FY26 and H1 FY26. The growth was driven by steady and balanced contributions across all three business verticals—Generic Formulations CDMO, Trade Generics and Institutional, and Exports—with quality standards remaining at the core of our strategy."

Komal Gupta, CEO & CFO, added: "As we move ahead, our focus remains on strengthening core capabilities and enhancing efficiencies. With disciplined execution and strong customer partnerships, Windlas Biotech is well-positioned to capture opportunities and deliver sustained value for all stakeholders."

The company's strategic focus on export growth, margin expansion, and diversification, coupled with its strong financial performance, positions Windlas Biotech for continued growth in the pharmaceutical CDMO sector.