Emcure Pharmaceuticals Ltd

Emcure Pharmaceuticals Limited — Trading window closed from Thursday, October 01, 2026 and shall remain closed up to 48 hours after the declaration of the unaudited financial results for the quarter and half year ending September 30, 2026

Company overview

• Diversified pharma with USD 1Bn+ FY26 revenue.
• India leads domestic business; international operations across Europe, Canada, RoW.
• R&D platforms include NDDS, LAI, ADC for differentiated launches.

Operational highlights

• FY26 international revenue up 22.2% YoY; Europe +25.5%, Canada +18.7%.
• Europe front-end, 55+ products; UK presence; Manx acquisition.
• Q1 FY27 revenue grew 22.8% YoY to INR 25,804 Mn.

Financial performance

• FY26 revenue: INR 92,035 Mn; domestic 40,270, international 51,766.
• EBITDA margin 19.4%; PAT margin 10.2%; Adj. PAT margin 10.9%.
• PAT INR 9,413 Mn; EPS INR 48.7; PBT INR 12,871 Mn.

Capital structure & liquidity

• Borrowings increased to INR 12,041 Mn; cash balance INR 1,475 Mn.
• Total equity & liabilities INR 96,125 Mn; reserves INR 47,604 Mn.
• Net cash from operations INR 9,435 Mn; capex INR 3,606 Mn.

Strategic priorities & outlook

• FY26-FY30 growth: deepen domestic, scale international, translate R&D platforms to launches.
• FY27 focus: deepen anaemia franchise and scale other areas.
• International growth via Europe, Canada, RoW; 55+ products in pipeline.

Risks & governance

• Forward-looking statements with regulatory/competitive risks.
• Founder-led board with independent directors and strong leadership.

Board changes

• Retirement of Berjis Desai as Chairman and Non-Executive Non-Independent Director after AGM on Sept 21, 2026.
• Re-appointment of Dr. Mukund Gurjar as Whole-time Director for one year from Aug 28, 2026.
• Re-appointment of Satish Mehta as Managing Director & Chief Executive Officer for five years from April 1, 2027.
• Appointment of Raghu Kumar as Independent Director for first term of three years from Aug 6, 2026.
• Voting results of the 45th AGM submitted to the stock exchanges on Sept 23, 2026.

AGM Details

• AGM held on 21 Sep 2026 at 11:00 IST via VC/OAVM.
• End time 12:23 PM; record date 14 Sep 2026.
• Remote e-voting window: 18–20 Sep 2026.

Key Resolutions

• Adopt Audited Standalone Financial Statements for FY ended 31 Mar 2026.
• Remuneration for Cost Auditor for FY 2026-27.
• Declare final dividend of Rs 3.6 per equity share.
• Appoint Dr. Mukund Gurjar as Whole-time Director.
• Appoint Namita Thapar as Director (retiring by rotation).
• Appoint Salish Mehta as Managing Director & Chief Executive Officer.
• Retirement by rotation of Berjis Desai, Chairman and Non-Independent Director.
• Ratify/remuneration payable to Cost Auditor for FY 2026-27.

Voting Results (overview)

• All resolutions passed by ordinary majority; no significant dissent reported.

Dividend

• Final dividend proposed/approved: Rs 3.6 per equity share (face value Rs 10).

Director Changes

• Berjis Desai retires by rotation (Chairman, Non-Independent Director).
• Namita Thapar appointed as Director (retiring by rotation).
• Mukund Gurjar appointed as Whole-time Director.
• Salish Mehta appointed as Managing Director & Chief Executive Officer.

Auditor Arrangements

• Remuneration payable to Cost Auditor for FY 2026-27 approved/ratified.

AGM Details

• AGM held on 21 September 2026 at 11:00 IST through VC/OAVM.
• Deemed venue: Registered Office; remote e-voting from 18 to 20 September 2026.

Key Resolutions

• Ordinary: Adopt standalone and consolidated financial statements for year ended 31 March 2026.
• Ordinary: Declare final dividend of INR 3.60 per equity share.
• Ordinary: Appoint Namita Thapar as Director retiring by rotation.
• Ordinary: Consider retirement of Berjis Desai from the Board.
• Special: Ratify remuneration payable to Cost Auditor for FY 2026-27.
• Special: Re-appoint Mukund Gurjar as Whole-time Director.
• Special: Re-appoint Satish Mehta as MD & CEO.
• Special: Appoint Raghu Kumar as Independent Director.

Director Changes

• Namita Thapar re-appointed by rotation.
• Berjis Desai retires from the Board.
• Raghu Kumar appointed as Independent Director.

Auditors & Compliance

• Remuneration payable to Cost Auditor for FY 2026-27 ratified.

ESOS Allotment Details

• Approval given for allotment of 11,400 equity shares on exercise of vested ESOS options.
• Post-allotment share capital becomes 18,97,10,647 shares; par Rs 10 per share.
• Shares rank pari passu with existing equity shares.

Rating Action

• CARE reaffirmed Emcure's long-term bank facilities at CARE AA; Stable.
• Reaffirmed LT/ST facilities: CARE AA; Stable / CARE A1+.
• Reaffirmed short-term facilities: CARE A1+.
• Facility amounts reaffirmed: LT 785 cr; LT/ST 1,563 cr; ST 52 cr.

Rationale & Drivers

• Healthy business risk profile with diversified geographic revenue.
• Leadership across key therapeutic segments; experienced management; strong R&D.
• FY26 revenue ₹9,322 crore; YoY growth 18%; PBILDT margin 20.0%.
• International revenue ~56% of total; Europe 26%, EM 22%, Canada 19%.
• Debt comfort: gearing 0.31x; PBILDT interest coverage 13.53x; TD/PBILDT 0.81x.
• Gennova stake acquisition ~₹232 crore; mRNA divestment ~₹140 crore.
• Regulatory/FX risks acknowledged; no material litigation identified.
• Capex ₹400-450 crore annually; funded largely by internal accruals.
• ESG initiatives noted; LEED-certified R&D facility, energy and water conservation.

Outlook

• Outlook: Stable.

Material Changes Since Last Rating

• FY26 debt rose; gearing at 0.31x.
• Gennova stake acquisition completed July 2026 and mRNA divestment.

Overview

• Standalone BRSR for FY2025-26 accompanies the Annual Report.
• Main activity: manufacturing of pharmaceuticals (100% turnover).
• Exports contributed 50.26% of turnover, spanning 80+ countries.
• Nine Indian plants; 39 total locations including offices.
• Reporting boundary is standalone; BRSR core indicators assured by TÜV Rheinland.

Key ESG Risks & Opportunities

• Energy/GHG: high energy use; renewables and efficiency mitigate climate/regulatory risks.
• Water: scarcity risk; ZLD and recycling reduce costs and improve resilience.
• Waste: circular economy and recycling lower environmental impact and costs.
• EHS: strong hazard assessments and training bolster safety and compliance.
• Cybersecurity: robust controls protect operations and stakeholder trust.
• Diversity/DEI: enhances talent, engagement, and innovation.

Governance & Policy Highlights

• Board/Committee oversight approves statutory policies; includes Code of Conduct, Vigil Mechanism, EHS, HR, CSR.
• Policies translated into procedures; value chain coverage varies by policy.
• TÜV Rheinland provides reasonable assurance for core indicators; scope covers 9 sites and Pimpri office.
• Investor complaints: 1; customer complaints: 111; no penalties reported FY2025-26.
• Grievance channels include SEBI SCORES portal, emails, and whistle-blower mechanism.

Social Responsibility & Workforce

• Total employees: 10,003; permanent 6,548; female share 9%.
• Board women: 20%; Key Management Personnel women: 50%.
• Differently abled: 2 employees; 9 differently abled workers.
• Return-to-work after parental leave: female permanent 37%; retention 83%.
• Wellbeing spend: 0.13% of revenue; PF/Gratuity 100% coverage; ESI 2%.
• Training: Board/KMP 100%; employees/workers 93% trained.

Environmental Performance

• Total energy: 738,954.54 GJ; renewable energy 477,828.80 GJ; non-renewables 261,125.73 GJ.
• Energy intensity: 14.09 GJ per INR Mn turnover.
• Water withdrawal: 399,739.06 KL; water consumption: 549,171.94 KL.
• Scope 1 emissions: 30,082.43 tCO2e; Scope 2 emissions: 46,458.97 tCO2e.
• Waste generated: 6,255.97 MT; recycled 3,459.81 MT; incineration 446.47 MT; landfilling 575.38 MT.
• Certifications: ISO 14001 (Sanand), ISO 45001, GMP (WHO/EU), BIS, NFPA.
• ZLD system with ETP/RO/MEE; captive solar and biomass co-firing projects.
• PAT: no designated DC sites identified.

Stakeholder Engagement & Complaints

• Key stakeholders: employees, investors, customers, healthcare professionals, patients, suppliers, regulators, communities.
• Engagement channels: physical and digital media; ongoing frequency; topics include wellbeing, safety, and ESG.
• Investors: 1 complaint in FY2025-26; via SEBI SCORES and RTA channels.
• Customers: 111 complaints in FY2025-26; 1 pending resolution; channels include email and care lines.
• Whistle-blower/Vigil mechanism and ICC protect stakeholders; POSH policies in place.

Other Notable Metrics

• Related Party Transactions: purchases 3%; sales 36%; loans 93%; investments 98% in FY2025-26.
• MSME inputs 11%; inputs from India 88%.
• Voluntary product recalls: 3 in FY2025-26.
• Data privacy: no data breaches in FY2025-26.
• Gender diversity: POSH complaints 0.13% of female staff in FY2025-26.

Financial highlights

• Revenue from operations: INR 92,035.40 Mn.
• PAT after tax to equity holders: INR 9,243.61 Mn.
• EBITDA: INR 17,886 Mn; margin 19.4%.

Geography & mix

• India revenue: INR 40,269.75 Mn; 44% of total.
• Outside India revenue: INR 51,765.65 Mn; 56% of total.

Capital structure & liquidity

• Net debt: INR 10,538.38 Mn; gearing 0.21x.

Dividend & capital allocation

• Final dividend per share: INR 3.60; record date 04 Sep 2026.
• IPO net proceeds utilised for debt repayment: INR 6,000 Mn.

Governance

• Raghu Kumar appointed Independent Director for 3 years from 6 Aug 2026.

Strategic developments

• Zuventus consolidation completed; 20.4% stake bought out.