Emcure Pharmaceuticals reported strong Q2 FY26 results with revenue growth of 13% year-on-year and profits of INR 251 crores, a 25% increase. The company is partnering with Novo Nordisk to launch a second brand of semaglutide in India. Domestic business grew by 11% and international segment up 16%. Emcure completed the Zuventus stake purchase and expects continued margin improvement, targeting 150 basis points for the year.
Financial Performance
Emcure Pharmaceuticals announced robust financial results for Q2 FY26:
- Revenue from operations grew by 13.4% YoY to INR 2,270 crores.
- Domestic business increased by 10.6% YoY to INR 1,031 crores.
- International markets saw strong momentum, growing 15.8% YoY to INR 1,238 crores.
- Profit after tax reached INR 251 crores, reflecting a 24% YoY growth.
Tajuddin Shaikh, CFO, highlighted that Europe experienced a strong growth of 22.7% YoY, reaching INR 444 crores, and Canada reported healthy growth of 17.5% to INR 348 crores. Emerging markets grew 8.6% YoY to INR 446 crores, driven by the non-ARV portfolio.
Gross margins stood at 60.8%, and EBITDA excluding other income was up 15.2% to INR 439 crores. Piyush Nahar indicated expectations for margins to improve by about 150 basis points for the year.
Strategic Initiatives and Partnerships
A key announcement was the partnership with Novo Nordisk to launch a second brand of semaglutide, Poviztra, in India. This strategic move allows Emcure to enter the obesity market, leveraging the potential of India’s large population with obesity issues.
Satish Mehta, Managing Director & CEO, emphasized that partnerships with best-in-class MNCs are crucial to complement Emcure’s business and internal R&D efforts.
Segment Performance and Future Outlook
The domestic business saw good traction with growth in key segments like gynecology and cardiology. New areas such as derma, consumer, and diabetes continue to perform well.
Internationally, all geographies showed strong traction. Europe benefited from the ramp-up of Amphotericin B, and Canada continues to grow due to market share gains and new launches.
Zuventus Acquisition
Emcure completed the purchase of the minority stake in Zuventus, enabling full consolidation of the business and expecting backend synergies.
Debt and Expansion Plans
Net debt for the quarter was INR 837 crores, primarily due to the Zuventus stake purchase. The company now expects to be debt-free within 18 to 24 months. Emcure aims to expand its chronic business, particularly in women’s health, and will continue to seek in-licensing opportunities and M&A targets, particularly in the domestic market. The company is also focusing on complex injectables and biosimilars for emerging markets.
Source: BSE