Concord Biotech Ltd

Meeting Details

• Date and time: 26 August 2026, 01:00–03:00 IST.
• Type and mode: group meeting, physical in Ahmedabad.
• Organizer: Phillip Capital PCG.
• Key participants: Company Secretary & Compliance Officer.
• Purpose: investor conference; discussions based on public information.

Financial Performance

• Q1 FY27 revenue was INR 257 crores, up 26.2% YoY.
• API revenue INR 219 crores, up 42% YoY.
• Formulation revenue INR 39 crores, down 23%.
• Gross margin 78.9%, up 100 bps YoY.
• EBITDA INR 82 crores, up 34%; margin 32%.
• PAT INR 58 crores, up 31%; margin 22.4%.
• Export revenue grew 46% YoY; domestic revenue grew 12%.
• Net debt is zero; cash and cash equivalents exceed INR 442 crores.
• Capex for the quarter about INR 9.5 crores.
• Injectables facility ramp-up supports revenue growth and margin expansion.
• ANDA approvals: US FDA for mycophenolate mofetil and Tofacitinib tablets.

Operations and Product Updates

• Stellon Biotech launched; front-end US distribution for formulation products.
• Injectables facility commercialized; stability batches in progress; filings underway.
• Unit utilizations: Unit 1 ~80%, Unit 3 ~55%, Unit 2 ~25%.
• Fusidic acid launched FY26; expected to contribute to revenue.
• 8–10 products in pipeline; 2–3 oncology; majority anti-infectives/antifungals.
• Domestic formulations grew double-digit; Middle East contribution declined this quarter.

Regulatory and Approvals

• ANVISA Brazil inspection for Limbasi; PPB Kenya; NDA Uganda for Unit 2 Valthera completed.
• US FDA ANDA approvals for mycophenolate mofetil and Tofacitinib tablets.
• EcoVadis silver medal for sustainability; top 15% globally.

Growth Outlook

• FY27 growth expected to exceed historical rate.
• 40% EBITDA margin target contingent on injectable and Stellon ramp.
• Roadmap to INR 3,000 crores revenue in 5–6 years.
• API capex trigger at Unit 3 utilization around 80–85%.
• Limbasi brownfield expansion option if needed.

Capital Allocation

• Net cash position; zero debt; cash over INR 442 crores.
• Dividend payout ongoing; exploring organic and inorganic growth.

AGM Details

• Held on 31 July 2026 at 12:00 IST via VC/OAVM.
• Meeting commenced 12:00 noon and concluded 12:38 PM.

Resolutions & Voting

• Resolutions were as per AGM Notice; voting results to be declared within two working days.

Auditor Reports

• Statutory and Secretarial audit reports had no qualifications.

Attendee

• 38 members attended the AGM.

Consolidated results

• Total consolidated income Rs 27,031.49 lakh; revenue from operations Rs 25,748.90 lakh; other income Rs 1,282.59 lakh.
• Consolidated expenses Rs 19,324.91 lakh; PBT before JV Rs 7,706.58; PBT Rs 7,834.31 lakh.
• PAT Rs 5,769.69 lakh; total comprehensive income Rs 7,475.83 lakh; EPS Rs 5.52.

Standalone results

• Standalone total income Rs 27,361.35 lakh; revenue from operations Rs 26,051.71 lakh.
• Standalone expenses Rs 19,140.39 lakh; tax Rs 2,101.59 lakh.
• PAT Rs 6,119.37 lakh; EPS Rs 5.85.

Labour codes impact

• Labour codes exceptional item Rs 327.54 lakh in year ended Mar 31, 2026.

Operational segment

• Single operating segment in pharma per Ind AS 108.

Audit status

• Limited Review by BSR & Co LLP; no audit opinion issued.

Meeting Details

• Board meeting scheduled for July 31, 2026; time and venue not disclosed.

Key Agenda Items

• Consider unaudited standalone and consolidated financial results for Q1 ended June 30, 2026, with Limited Review Report.

Other Notes

• Trading window closed up to 48 hours after declaration of Q1 2026 results.

Record date and dividend entitlement

• Purpose: entitlement to final dividend for FY ended March 31, 2026.
• AGM on July 31, 2026 at 12:00 IST via video conferencing.
• Books closed July 25–31, 2026 (inclusive) for entitlements.
• Record date fixed as July 24, 2026 for final dividend entitlement.
• Dividend payable by August 30, 2026 if approved, subject to TDS.
• Dividend payable contingent on Members' approval at AGM.

Overview

• Standalone BRSR for FY2025-26; Concord Biotech Ltd.
• Core activities: manufacturing of APIs, finished formulations, and CDMO services.
• APIs generate 78.6% of turnover; finished formulations 21.4%.
• Pan-India operations with exports to 70+ countries and 300+ customers.
• Reasonable assurance provided by Ramanlal G. Shah & Co.

Key ESG Risks & Opportunities

• Quality management risk; mitigated by robust QM, pharmacovigilance, and a dedicated portal.
• Supply chain disruption risk; mitigated via vendor audits and Supplier Code of Conduct.
• Ethics/corruption risk; governed by integrity and independent boards; negative financial implications.
• GHG emissions risk; mitigations include cleaner fuels, energy efficiency, renewables, monitoring.
• Water resource opportunity; ZLD-based system enabling water reuse; no quantified financial impact.
• Data privacy risk; investing in digital infrastructure; no quantified financial impact.

Governance & Policy Highlights

• Board oversight via Committee of the Board; annual risk and quarterly compliance reviews.
• Anti-corruption policy established; policy link provided.
• Whistleblower policy in place; protects reporters; policy link available.
• POSH policy; FY2025-26 POSH complaints reported as zero.
• Disciplinary actions for bribery/corruption: zero in FY2025-26.
• Policy governance: internal evaluations; external assessments not disclosed.

Social Responsibility & Workforce

• Total workforce: 1,624 employees and 1,275 workers.
• Gender mix: employees 92.98% male, 7.02% female; workers 97.80% male, 2.20% female.
• Differently abled: 4 employees; all male.
• Board female representation: 11.11% (1 of 9); KMP female: 0%.
• LTIFR: zero; no fatalities; robust safety program in place.
• ISO 14001 and ISO 45001 certifications; audits by USFDA, EU GMP, PMDA, and others.
• 100% training coverage on health/safety and quality for staff.

Environmental Performance

• Total energy consumed: 14,500,033 GJ; renewable share: 1,438.8 GJ.
• Scope 1 emissions: 23,982.6 tCO2e; Scope 2: 58,743.5 tCO2e.
• Emission intensity: 0.000007808 tCO2e per rupee turnover.
• Water withdrawal: groundwater 387,620 KL; total water 388,780 KL.
• ZLD implementation with ETP, RO, MEE, ATFD across facilities; ~90% sludge reduction.
• Total waste generated: 1,202.47 tonnes; recycled 588.78; reused 39.0; disposed 673.75.
• Affiliations to ISO certifications and NABL-audited emissions data.

Stakeholder Engagement & Complaints

• Key stakeholder groups: healthcare professionals, customers, suppliers, regulators, NGOs, investors, employees.
• Engagement frequency: half-yearly or as needed; channels include meetings, surveys, calls, emails.
• Investors receive updates via annual reports, quarterly results, calls, and AGMs.
• No unresolved complaints reported in FY2025-26 across stakeholder groups.
• Whistleblower policy and accessible grievance mechanisms in place.

Other Notable Metrics

• Affiliations: five trade associations; IDMA, CII, Gujarat Chamber, PEPC, FIEO.
• Input material: MSMEs/small producers 26.85% of total inputs; 67.45% sourced in India.
• Related-party transactions: purchases from related parties 0%; sales to related parties 2.81%.
• No data breaches or cyber incidents reported; data privacy policy remains enterprise-level.
• Product recalls: none; POSH disclosures: zero complaints in FY2025-26.
• BRSR assurance: reasonable assurance by Ramanlal G. Shah & Co.; scope limited to identified sustainability information.

Financial performance

• FY26 standalone revenue ₹1,055 cr, down from ₹1,200 cr in FY25.
• Consolidated FY26 revenue ₹1,055 cr.
• Standalone EBITDA ₹367 cr; EBITDA margin 34.8%.
• Standalone PAT ₹263.3 cr; PAT margin ~24.6%.
• Net cash from operations FY26 ₹266.9 cr.
• Debt-free balance sheet; long-term debt nil.
• Revenue decline driven by US tariff headwinds and Middle East tender deferrals.
• Injectables ramp and US business uplift supported by Valthera facility.
• Robust cash generation with growth runway from injectable and US markets.
• Dividend policy disclosed; final dividend proposal separate from results.

Capacities, products & pipeline

• Fermentation API portfolio: 30+ APIs; 150+ DMFs filed; 100+ formulations approved.
• Fermentation capacity: 1,250 m3; Formulation OSD: 802 million units.
• Valthera injectable facility: WHO GMP certified; peak revenue potential ₹600 cr.
• Teriflunomide Tablets ANDA approved by US FDA in FY26.
• Stellon Biotech Inc. established as 75% subsidiary for US market.
• Concord Lifegen Limited established as 100% subsidiary for marketing.
• Concord Biotech Japan K.K. is 50% JV.
• Global footprint across 70+ countries; 300+ customers.
• R&D: 180 scientists; FY26 R&D spend ₹29 cr.
• Pipeline: 10+ products under development; commercialization over 5–7 years.
• ANDA approvals: 5+; DMFs filed 150+; inspections by USFDA, EU GMP, PMDA.

Dividends & capital returns

• Final dividend proposed: ₹7.55 per equity share.
• Total payout approximately ₹78.99 cr (₹7,898.52 Lakhs).
• Dividend Distribution Policy hosted on the company website.
• No transfer to general reserve during FY26.
• AGM record date: 24 July 2026.

Capital structure & liquidity

• Long-term debt nil; debt-free balance sheet.
• Cash and investments around ₹414 cr as of 31 Mar 2026.
• Gearing: negative (−0.60% group; −0.39% standalone).
• No outstanding borrowings; ample liquidity headroom with undrawn bank facilities.
• Strong operating cash flow supports investments in growth platforms.

Governance & risk management

• Board of 9 directors; 7 Non-Executive, 2 Executive; 5 Independent incl. 1 Woman.
• FY26: 5 board meetings; 100% director attendance.
• CFO Lalit Sethi resigned Jan 2026; Raviraj Karia appointed CFO Dec 2025.
• Company Secretary Hina Patel resigned Jan 2026; Paritosh Trivedi appointed Feb 2026.
• Ekta Gupta appointed Independent Director effective 1 Jun 2026.
• Independent Directors met Feb 10, 2026; independent evaluations completed.
• Auditors: Statutory BSR & Co. LLP; Secretarial Ashish Shah & Associates; Cost Dalwadi & Associates.
• RPTs are arm’s length; governance policies published on website.

Sustainability & ESG snapshot

• Net Zero by 2030 commitment; ongoing energy & water stewardship.
• Renewables: 6.6 MW wind + 3.3 MWp solar via Clean Max Everglades (26% stake).
• Zero Liquid Discharge (ZLD) with ETPs; ~90% sludge reduction.
• ISO 14001 and ISO 45001 certifications; WHO GMP inspections passed.
• CSR spend FY26 ₹7.91 cr; total CSR spend ₹8.01 cr; carry-forward ₹10.81 lakh.
• Energy consumption FY26: 14.50 million GJ; significant renewable integration.
• Waste management: HDPE reuse, e-waste recycling; hazardous waste properly handled.

Subsidiaries & associates

• Concord Lifegen Limited – 100% subsidiary.
• Stellon Biotech Inc. – 75% subsidiary.
• Concord Biotech Japan K.K. – 50% joint venture.
• Clean Max Everglades Private Limited – 26% associate.
• Cellimune Biotech Private Limited acquired; wholly owned as of Apr 2, 2026.

Audits, risks & related filings

• Statutory audit: unqualified opinion; no material qualifications.
• Secretarial audit: no adverse remarks; Ashish Shah & Associates.
• Key tax disputes noted: excise ₹376.37 lakh; income tax ₹14.61 lakh (standalone).
• Contingent liabilities disclosed; material impact not expected.
• RPTs disclosed; arm’s length; approvals obtained.

AGM Details

• AGM scheduled for 31 July 2026 at 12:00 Noon via VC/OAVM.
• Record date for dividend and voting: 24 July 2026.
• Remote e-voting window: 28–30 July 2026.
• AGM venue deemed the Registered Office.

Ordinary Resolutions

• Adopt audited standalone and consolidated financial statements and reports.
• Re-appoint Ankur Vaid as director.

Special Resolutions

• Appoint Ekta Gupta as Independent Director for five years from 1 June 2026.
• Enhance limits for loans/guarantees/securities to subsidiaries/associates/JVs up to ₹500 Cr.
• Ratify remuneration of Cost Auditors for FY2026-27 at ₹3.70 lakh plus GST.

Dividend

• Dividend proposed: ₹7.55 per equity share.

Director Changes

• Ankur Vaid to be re-appointed (retire by rotation).
• Ekta Gupta appointed as Independent Director (effective 01 June 2026).

Auditors

• Cost Auditor remuneration ratified; Dalwadi & Associates to audit for 2026-27 at ₹3.70 lakh plus GST.

Material Related Party Transactions

• Proposed RPT: loans/guarantees/securities to subsidiaries or associates up to ₹500 Cr.
• Aggregate RPT value: 41.66% of subsidiary turnover; approvals obtained.