Windlas Biotech Ltd

Financial Performance

• Revenue: INR 248 crores, up 18% YoY.
• EBITDA (excl. ESOP): INR 34 crores, up 26% YoY.
• EBITDA (incl. ESOP): INR 27 crores; ESOP non-cash expense INR 7.2 crores.
• PBT: INR 30 crores; PAT: INR 25 crores; YoY +27% / +37%.
• EPS: INR 8.46 for Q1 FY27.
• Buyback completed: INR 47 crores; promoters did not participate.
• Record revenue streak: 14 consecutive quarters, 18% YoY growth.
• Plant 6: mechanical completion done; validations ongoing; commercialisation planned in H1 FY27.
• Plant 6 revenue potential: about INR 1,100 crores; efficiency could add 10–15%.
• IPM volume growth: 3.4% in Q1 FY27; industry growth historically 10–14%.
• Current utilization around 65%; Plant 6 coming online to lift capacity.
• Depreciation impact: ~INR 30 million per quarter initially due to Plant 6; ramp in Q2/Q3.

Operations Update

• CDMO/CMO growth approximately 29% in the quarter.
• Trade Generics (TGx) momentum affected by codeine changes; portfolio expansion pursued.
• Exports growth continuing; geography expansion and BD team efforts ongoing.
• Injectables ramp: Plant 6 expansion to extend existing portfolio; no new product development assumed.
• Geography opening and SKU expansion highlighted as key levers for growth.
• No new dosage form update communicated; no final decision yet.

Capex & Plant 6

• Plant 6 commissioning targeted in end of Q2 / H1 FY27; 6–8 months to add machinery and qualify.
• Current capacity plan: INR 1,100 crores potential from Plant 6; 100–150 crore incremental uplift possible with efficiency.
• No immediate larger greenfield capex; focus on debottlenecking and efficiency in existing plants.
• Depreciation outlook: around INR 30 million per quarter initially; rises from Q2/Q3.

Guidance and Outlook

• Management stated they do not provide forward-looking guidance.
• No formal numeric guidance issued for the remainder of FY27.

Q&A Highlights

• IPM data discussed: Q1 FY27 volume growth 3.4%; longer-term trend debated.
• Codeine impact: TGx momentum affected; management focusing on portfolio and geography expansion.
• Export strategy: ongoing geography expansion, portfolio expansion, and plant-approval activity.
• Utilisation & capacity: current ~65%; Plant 6 aims to lift capacity to about INR 1,100 crores.
• API price volatility: discussed; management emphasized supply focus and customer-sharing of risks.
• New dosage form: no concrete update; no final decision announced.

Conference call recording update

• Intimation under Regulation 30 for recording of investor/analyst conference call.
• Audio recording of the June 30, 2026 unaudited standalone results call uploaded on Windlas website.
• Transcript will be shared with stock exchanges and uploaded on website in due course.

Financial highlights

• Revenue from operations ₹248 crore; up 18% YoY.
• Adjusted EBITDA ₹34 crore; margin 13.6%; up 26% YoY.
• Adjusted PAT ₹25 crore; margin 10%; up 37% YoY.
• ESOP impact excluded from adjusted metrics: ₹7.16 crore non-cash expense.
• EPS ₹8.46 per share.
• Rs 47 crore share buyback completed; promoters did not participate.
• FY26 dividend ₹13 crore declared (₹6.30 per share).
• Reported EBITDA ₹27 crore; reported PAT ₹18 crore.

Verticals and business mix

• CDMO revenue ₹207 crore; up 29% YoY.
• CDMO contributed ~84% of Q1 revenue.
• Trade Generics & Institutional revenue ₹30 crore; down 32% YoY.
• Exports revenue ₹11 crore; up 79% YoY.
• Exports share ~4% of consolidated revenue.
• Injectables and Plant-2 Extension facilities driving growth.
• Plant-6 commercialization expected in H1 FY27.

Outlook and strategic actions

• On track to commercialize Plant-6 in H1 FY27.
• Focus on partnerships, portfolio expansion, and disciplined execution.
• Capex and capacity enhancements to support growth.

Business Overview

• Core business is generic formulations CDMO with domestic and export presence.
• Three verticals: Generic Formulations CDMO, Trade Generics & Institutional, Exports.
• IP rights on about 99% of products sold.
• Five WHO-GMP plants with capacity across tablets, capsules, pouches and liquids.
• DSIR-approved R&D lab enabling first-to-launch, complex generics.
• 926 customers and 5,644 brands; long-standing customer relationships.

Operational Highlights

• Q1 FY27 revenue ₹248 Cr; 18% YoY growth; highest quarterly.
• Plant-6 commissioning expected in H1 FY27.
• Injectables and Plant-2 extension facilities drive scalable growth.
• Buyback ₹47 Cr completed; promoters did not participate.
• Dividend for FY26 ₹13 Cr (₹6.3/sh).
• Exports revenue ₹11 Cr in Q1 FY27; 79% YoY growth.
• Trade Generics revenue ₹30 Cr after discontinuation of codeine products.
• CDMO revenue accounted for 84% of Q1 FY27.
• FY27 start: 14th consecutive quarter of revenue.

Financial Performance

• Net revenue ₹248 Cr; COGS ₹153 Cr; gross profit ₹95 Cr; gross margin 38.4%.
• EBITDA (excluding ESOP) ₹34 Cr; margin 13.6%.
• PAT (excluding ESOP) ₹25 Cr; margin 10.0%.
• EPS ₹8.46.
• Reported EBITDA ₹27 Cr; margin 10.8%.
• Reported PAT ₹18 Cr; margin 7.1%.
• CFO ₹104 Cr; net liquidity ₹251 Cr; net debt-free.
• ROCE 32%; ROE 29%; Asset turnover 4.7x.
• FY26 revenue ₹904 Cr; EBITDA ₹121 Cr; PAT ₹83 Cr.
• Capex FY26 ₹73 Cr; gross fixed assets ₹426 Cr.
• Total employees 1,382 as of FY26.

Capital Structure & Liquidity

• No borrowings; net debt-free; net liquidity ₹251 Cr as of Mar-26.
• Dividend payout policy near 20% of consolidated PAT.
• FY26 dividend ₹13 Cr (₹6.3/sh) declared.
• Buyback completed Apr 2026: ₹47 Cr at ₹1,000/sh.
• Promoters did not participate in buyback.

Strategic Priorities & Outlook

• Focus on partnerships, portfolio expansion, operational excellence, and disciplined execution.
• Commission Plant-6; retrofit with next-gen capabilities; digital QMS.
• Expand wallet share with marquee clients; mitigate concentration risk.
• Grow across three verticals; accelerate new launches.
• Export expansion into ROW markets; leverage DSIR capabilities.

Governance & Leadership

• MD and Board leadership: Hitesh Windlass (MD) and Vivek Dhariwal (Chairman).
• CEO & CFO: Komal Gupta; CS: Ananta Narayan Panda.
• Independent and experienced directors support governance framework.

Financials

• Revenue from operations: Rs 2,480.99 mn.
• Total income: Rs 2,532.12 mn.
• PBT: Rs 229.36 mn; QoQ +13.8%.
• PAT: Rs 176.53 mn; QoQ +10%.
• Basic EPS: Rs 8.46; Diluted EPS: Rs 8.32.
• Dividend proposed: Rs 6.30 per share; payout Rs 130.01 mn.
• Buyback: 470,000 shares at Rs 1,000.
• Paid-up equity capital reduced to 20,636,229 shares.
• Windlas Inc., USA dissolved; no consolidation from Apr 1, 2026.
• Single reportable segment: Pharmaceuticals.

Corporate actions & structure

• Employee share-based payment expense: Rs 71.62 mn.
• Codes on Wages/IR/Social Security/OSH; impact not material.
• Ind AS 108: Pharmaceuticals is the sole segment.

Certificate submission

• Certificate from the Registrar and Share Transfer Agent for the reporting quarter enclosed.

Meeting Details

• Date: Tuesday, July 14, 2026; Type: Group meeting.
• Time: 3:00 PM onwards; Mode: Virtual.
• Organiser: Windlas Biotech Ltd; Analyst/Institutional Investor Meetings.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: Group investor/analyst meeting for general investor interaction.

Additional Notes

• Discussion will reference publicly available documents; no UPSI will be shared.
• Note: changes may occur due to exigencies.

AGM details & voting

• 25th AGM on July 23, 2026 at 1:00 PM IST via VC/OAVM.
• e-voting provided by MUFG Intime India Private Limited via Instavote.
• Cut-off date for voting is July 16, 2026; voting window July 20–22.
• Record date July 16, 2026; final dividend Rs 6.30 per share for FY2025-26 if approved.
• Audited standalone and consolidated statements for year ended March 31, 2026 to be adopted.
• VC/OAVM venue deemed at the company's registered office.

Governance actions

• Hitesh Windlass to be re-appointed as Director (retiring by rotation).
• Prachi Jain Windlass to be re-appointed as Director.
• Remuneration of Cost Auditor Rs 60,000 plus GST for FY2027; ratified.
• Dr Tarashree Singhal appointed Independent Director for five years (May 5, 2026 – May 4, 2031); independence confirmed.

Financial highlights

• Revenue ₹9,041 million, +19% YoY.
• Adjusted EBITDA ₹1,214 million, margin 13.4%.
• PAT ₹831 million, margin 9.2%.
• EPS ₹31.60, +8% YoY.
• Cash from operations ₹1,049 million; net liquidity ₹2,507 million; net debt-free (standalone).
• Thirteenth straight quarter of record revenue.
• Dividend proposed ₹130 million, ₹6.30 per share.
• Market cap ₹15,550 million as of 31 Mar 2026.
• AGM scheduled for 23 July 2026 via VC/OAVM.

Verticals and growth drivers

• CDMO revenue ₹6,637 million, +20% YoY; 926 customers across 5,644 brands; 74% complex generics.
• Trade Generics & Institutional ₹1,946 million, +13% YoY; 546 brands; 1,582 stockists across 29 states.
• Exports ₹458 million, +40% YoY; 67 products across 10 countries.
• R&D spend ₹83 million; 74% of CDMO revenue来自复杂通用药.
• CDMO remains growth engine; 5 WHO-GMP facilities; Plant 4 & 5 GMP Philippines.
• Plant VI mechanical completion; commercialization expected H1 FY27.
• Five-year CAGR: Revenue 18%, EBITDA 19%, PAT 15%.
• Top-10 CDMO customer concentration down to 32% from 52% (FY22).

Manufacturing and capacity

• Five WHO-GMP facilities; capacity 8,522 million tablets/capsules; utilization 66% in FY26.
• Gross block ₹4,262 million; Capex ₹750 million in FY25-26.
• Plant 4 & Plant 5 Philippines GMP-certified; Plant 6 mechanical completion; on track for FY27.
• DSIR-recognized R&D center in Dehradun; 250 QA personnel.
• Manufacturing scope covers tablets, capsules, liquids, and injectables.

Capital allocation and shareholder value

• Buyback completed: 4,70,000 shares at ₹1,000 each; promoters declined participation.
• Post-buyback paid-up capital reduced to 20,636,229 shares.
• Final dividend proposed ₹6.30 per share; payout aligns with policy.
• CSR spend ₹13.95 million; 2% of mean profitability requirement, with focus on healthcare, education, and animal welfare.
• PM market signals and strong liquidity position support growth and capital recycling.

Governance and leadership changes

• Board: 8 directors; 4 independent; Srinivasan Venkataraman ceased May 6, 2026.
• Dr Tarashree Singhal appointed as Independent Director from May 5, 2026.
• Gaurav Gulati appointed Chair of Audit Committee from May 5, 2026; Tarashree joined NRC.
• Internal audit shifted to Deloitte Touche Tohmatsu India for 2026-27.
• Secretarial auditor: Sandeep Joshi & Associates; no qualifications reported.

Subsidiaries and group structure

• Windlas Inc. dissolved as a subsidiary, effective 31 March 2026.
• Windlas Inc. held 100% stake; balance sheet value minimal at dissolution.
• US Pharma Windlas Inc LLP ceased as a joint venture in 2024.

CSR and sustainability

• CSR focus areas: healthcare, education, animal welfare, and environment.
• FY26 CSR spend ₹13.95 million; healthcare ₹6.95m, education ₹6.09m, animal welfare ₹0.91m.
• CSR impact includes: free medicines, school support, and animal welfare initiatives.