Bajaj Healthcare Ltd

Capital / Securities

• 2,500 equity shares allotted under Bajaj Healthcare Limited ESOP Scheme 2024 at ₹5 per share.
• Shares rank pari-passu with the existing equity shares.
• Issued capital increased to 3,36,65,161 shares; paid-up capital ₹16,83,25,805.
• Date of allotment: August 21, 2026.
• Total issued shares after this allotment: 3,36,65,161.
• Diluted EPS for quarter ended 30 June 2026: ₹4.06.
• ISIN: INE411U01027.

Regulatory approval and launch

• DCGI approves Bajaj Healthcare to manufacture and market Cenobamate API and tablets in six strengths (12.5–200 mg).
• Company becomes the first to launch Cenobamate in India.
• Approval strengthens the CNS portfolio and potential for long-term growth.
• Cenobamate indicated for partial-onset seizures in adults.

Rating Action & Instruments

• Ind-Ra upgrades bank loan facilities to IND A/Stable and IND A1.
• Bank loan facilities size reduced to INR 2,820 million.
• Outlook: Stable; ratings reflect improved profile and liquidity.
• Previous rating was IND A-/Negative; new is IND A/Stable.

Rationale & Key Drivers

• Strengthened business profile with long-term customer relationships.
• Capex funded by promoter funds; new R&D centre and peptide API facility planned.
• FY26 revenue rose to INR 6,110 million; EBITDA 17.2%.
• Gross margins 48% in FY26; ROCE improving.
• Liquidity adequate; net leverage expected below 2.0x.
• Key risks: regulatory, currency, and geopolitical factors.
• Working capital cycle elongated; improved to 200 days in FY26.
• Outlook: Stable.

Financial Performance

• Q1 FY27 revenue INR 165.6 crores; up 11.3% YoY and 8.2% sequential.
• Gross profit INR 80.4 crores; gross margin 48.3%, up 210 bps.
• EBITDA INR 29.6 crores; EBITDA margin 17.8%.
• PAT from continuing operations INR 13.9 crores; PAT margin 8.4%.
• Domestic API growth 27% YoY to INR 92.3 crores; export INR 50.1 crores; formulations INR 23.3 crores.
• Net worth INR 533 crores; debt-to-equity 0.45; FY25 0.48; FY24 1.19.
• Operating cash flow FY26 INR 58.1 crores; year-end cash INR 37.2 crores.

Strategic and Operational Highlights

• Oncocare launched in 2024; presence across 23 states and 3 UTs with 15+ brands.
• Exclusive license for Magnesium L‑Threonate (Magtein); supplies US inventor.
• DSIR-approved Savli R&D center expanded to 10,000 sq ft; 100+ researchers; operational by Aug 2026.
• GenRx Nashik facility acquired; under NCLT; commercial production expected H2 2027.
• BE studies for Suvorexant completed; Cenobamate timing and approvals in progress.

Capex and Projects

• Peptide manufacturing facility 250 kg per annum; commissioning targeted by Q4 2027.
• Oncology API facility ready for commercialization by Q4 2028.
• R&D expansion supports multi-year peptide and API pipeline.

Guidance and Forward Look

• FY27 revenue growth guidance: 10% to 15%.
• FY28 revenue growth guidance: 10% to 15%.
• Annual capex guidance: INR 40–50 crores.
• Exports expected to rise to 30–35% of revenue in coming years.
• Long-term revenue target: INR 900–1000 crores in 2–3 years.
• Peptide plant peak revenue: INR 200–300 crores; EBITDA 18–20%.
• Suvorexant commercialization targeted in FY28 Q4.
• Cenobamate revenue potential: INR 10–12 crores in FY27.

Q&A Highlights

• API prices remained stable this quarter; movement tied to oil geopolitics.
• Semaglutide peptide commercialization in Q4 FY27; India first, plant designed for global market.
• Oncology API plant ready by Q4 2028; commercialization in subsequent period.
• UK/EU CDMO filings; six CEP approvals; first customer batches FY28.
• Receivable days improved to 131; expected 110–120 days going forward.
• Backward integration: Vitamin C and 8–10 products; margin uplift 1–2%.
• Opium processing for Government of India; no sale of opiates; R&D on two molecules.

Risks and Watchpoints

• Regulatory timelines for Cenobamate and Suvorexant remain uncertain.
• Geopolitical and oil-price movements impact API pricing and exports.
• Execution risk in peptide/oncology capex ramp and plant commissioning.
• Backward integration timelines and margin benefits may vary.
• Inventory normalization risk given elevated levels due to recent war-related planning.

Financial results and auditor

• Unaudited standalone results for quarter ended 30 June 2026, with limited review by Walker Chandiok & Co LLP.
• Independent auditor's review concluded no material misstatement.

Directorship and governance

• Continuation of Mr. Gopalakrishnan Kesavan as Non-Executive Independent Director beyond age 75, subject to shareholders' approval.
• Term extends to 17 August 2030.

Warrants conversion and listing

• Conversion of 20,79,409 convertible warrants into equity; NSE and BSE listing approvals obtained.

Fundraising and utilization

• Funds raised via preferential issue totaled Rs 20,497.00 lakhs; utilised Rs 19,324.32; unutilised Rs 1,172.68.
• Utilisation as of 30 June 2026: loan repayment Rs 15,000.00; capex Rs 2,330.84; general corporate Rs 1,993.48.

Genrx acquisition and Know-how reversal

• Genrx Pharmaceuticals acquired in April 2025; NCLT relief pending; not consolidated.
• Know-how income reversal of ₹3,324.66 lakhs recorded in Q4 FY26.

Meeting Details

• Earnings call for Q1 FY27 scheduled July 21, 2026 at 4:00 PM IST.
• Type: group investor call; Mode: virtual conference.
• Organiser: Bajaj Healthcare Limited; represented by MUFG Intime India Private Limited.

Participants

• Managing Director and Chief Financial Officer to represent company.

Purpose

• Discuss financial performance for quarter ended June 30, 2026.

Notes

• Pre-registration recommended for the earnings call.

Meeting Details

• Date and time: July 21, 2026, 4:00 PM IST.
• Type and mode: earnings call, virtual group meeting.
• Organizer: Bajaj Healthcare Limited.
• Event: Q1 FY27 earnings call for quarter ended June 30, 2026.

Participants

• Key company participants: Chief Financial Officer; Managing Director.

Purpose

• Purpose: discuss Q1 FY27 financial performance for quarter ended June 30, 2026.

Meeting Details

• Board meeting on July 20, 2026 to consider unaudited results for quarter ended June 30, 2026.

Key Agenda Items

• Consider and approve unaudited financial results for quarter ended June 30, 2026.

Other Notes

• Trading window remains closed for insiders from July 1, 2026 to 48 hours after results declaration.

Dematerialisation status

• Dematerialisation requests processed and confirmed to the depositories.
• Securities dematerialised listed on the stock exchanges where existing securities are listed.
• Physical certificates for dematerialisation mutilated and cancelled after verification; depository name substituted as registered owner.