Emcure Pharmaceuticals announced robust results for Q3 FY26, achieving 20.4% year-on-year revenue growth, reaching INR 2,363 crores in operations revenue. Profit after tax grew by 48% to INR 231 crores. The company maintained strong margin objectives, with EBITDA margin expanding by 110 basis points to 19.5%. Key drivers included the India domestic business growth of 15% and international growth of 24.5%, highlighted by the successful launch of its Novo Nordisk partnership drug.
Q3 FY26 Financial Highlights
Emcure Pharmaceuticals Limited shared its performance for the third quarter of the fiscal year 2026 (Q3 FY26) on February 04, 2026. The results reflect the execution of the company’s 5-year strategic roadmap aimed at compounding value.
Revenue from operations for the quarter grew by an impressive 20.4% year-on-year, totaling INR 2,363 crores. Profit after tax (PAT) showed strong growth of 48%, coming in at INR 231 crores. Adjusted PAT, excluding an exceptional expense related to Labour Code changes (INR 38 crores), grew by over 65%. Despite investments and the Sanofi diabetes in-licensing portfolio impact, the EBITDA margin expanded by 110 basis points to 19.5%.
Segmental Performance Breakdown
Domestic Business Momentum
The domestic business demonstrated healthy momentum, recording a growth of 15% year-on-year, reaching INR 1,025 crores. Growth was primarily led by chronic therapies, including Cardio-Diabeto and CNS. Management noted that the core business grew in the healthy double-digits (10% plus), even excluding the impact of the recently in-licensed Sanofi OAD portfolio.
International Business Strength
International operations were a significant growth engine, delivering 24.5% growth year-on-year to INR 1,338 crores. Key contributions came from:
- Europe: Strong traction with 29.6% growth, benefiting from the ramp-up of the base business and the Manx acquisition.
- Canada: Sustained momentum with 13% growth through market share gains and new launches.
- Rest of India (Emerging Markets): Grew by 30.7% across both ARV and non-ARV businesses.
Strategic Focus: Innovation and Partnerships
Management highlighted the exclusive partnership secured with Novo Nordisk in late 2025 to launch the innovator GLP-1 drug, Poviztra (semaglutide). This marks Emcure’s step up the value chain into innovation, positioning the company as a key player in this blockbuster category. The company emphasized its unique strength in both chemistry and biotech.
Furthermore, the recent Union Budget, earmarking INR 10,000 crores for Bio-Pharma SHAKTI to encourage biologics and biosimilars, positions Emcure well, as it currently markets 7 biotherapeutics with more in the pipeline.
Outlook and Long-Term Guidance
The management expressed confidence in sustained performance over the next 3 to 5 years, aspiring to outgrow the industry (estimated at high single-digits to 12%). Long-term strategy focuses on:
- Continuing to focus on science, technology, and innovation.
- International markets (Europe/Canada) expected to maintain low-teens compounded growth.
- Achieving an expected 300 to 400 basis point improvement in the EBITDA margin profile over the 3- to 5-year horizon through organic growth.
Regarding debt, the company expects its net debt of approximately INR 1,200 crores to reduce, potentially reaching net debt zero by December 2028, supported by strong free cash flow generation.
Source: BSE
