Amanta Healthcare Ltd (AMANTA) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Amanta Healthcare Limited Q2 H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Saumya from Go India Advisors. Thank you, and over to you, ma'am.
Saumya (Go India Advisors): Good day, everyone, and welcome to Q2 and H1 FY '27 earnings call of Amanta Healthcare Limited. We have on call with us, Mr. Bhavesh Patel, Chairman and Managing Director, Mr. Paras Mehta, Chief Financial Officer. We must remind you that discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks pertaining to the business. I now request the management to take us through the same and provide some more insight on the quarter and half year gone by, and post that, we'll open the floor for Q&A. Thank you, and over to you, sir.
Bhavesh Patel (Amanta Healthcare Ltd): Namaste, and good afternoon, everyone.
Bhavesh Patel (Amanta Healthcare Ltd): Thank you for joining us for the Amanta Healthcare Q2 FY27 earnings call. On behalf of the management, I would like to sincerely thank our shareholders, customers, healthcare partners, leaders, and employees for their continued trust and support. Q2 FY27 has been a quarter of delivery for Amanta. Our top line grew by 17% year-on-year, and profits grew even faster than revenue. Our CFO, Shri Paras Mehta, will take you through the numbers in details later. Let me focus on what we have achieved so far and where our next phase of growth will come from. First, SteriPort Line 3 is live, is operational. We commissioned it in the first week of September 2026 at our existing Kheda facility, taking our SteriPort capacity up by about 75% from 6.6 crore per year to roughly 11.6 crore. SteriPort is built on advanced ISBM technology, continues to see strong customer acceptance for its advantages in stability, safety, and reduced patient risk, with demand across high value therapies such as onco care, critical care, anesthesia, and pediatrics. We expect Line 3 to reach full ramp up within the next quarter. SteriPort Line 3 is having some technological advancements such as process automation, servo controls, robotic operations, and it reduces human intervention. Though this requires skilled operations and supervision, it makes operation of our new line more efficient and reliable. Second, our 10.8 megawatt captive solar plant has been generating power since the end of Q1 FY27. This is a structural cost advantage that will reduce our power cost every year while also strengthening our ESG profile. Third, we have strengthened our balance sheet considerably. Our debt equity ratio has come down from 3.5 times in FY23 to about 1.1 in FY26, giving us the financial headroom to fund our next phase of growth with discipline. Our annual repayment of debt is scheduled at roughly 35 crore including solar loans. Our growth levers. Going forward, three pillars are working together to drive growth. The first is market depth. We are expanding our wallet share with complex dosage forms and niche molecules across anti-infectives, respiratory care, ophthalmic. And we are deepening our presence in advanced markets. In Q2 FY27, approximately 32% of our revenue came from international markets. The second is manufacturing scale. After SteriPort, our next expansion is in small volume parenterals where capacity will rise by roughly 52% from 20.9 crore to roughly 31 crore during Q1 FY28. SVP new line is primarily aimed at using our current capacity and F&D activities to strengthen offerings for inhalation solutions and ophthalmics. And the third is efficiency. Alongside solar, our new lines share our existing infrastructure, workforce, and utilities. As volume scale, this gives us meaningful operating leverage and better absorption of fixed cost. The future outlook. With these investments, we have set ourselves a clear 2-year aim, revenue growth of 20% plus CAGR and EBITDA margins of 25% plus.
Paras Mehta (Amanta Healthcare Ltd): revenue from operations stood at 83.1 crore, up by 17% year-on-year from 71 crore of the same quarter of last year. EBITDA for the quarter is also up by about 22%, which is 18 crore, and EBITDA margin has remained healthy at 21.6%, despite all challenges of overhead and the raw material price pressure. EBITDA grew little faster than revenue, reflecting better absorption of fixed cost as well as benefit which is started from the solar operations. Finance cost were 6 crore, depreciation 5 crore, that is up by 13% as new capacity has came on the stream. So, full depreciation has been provided during the quarter. Same way, the interest for the solar project term loan has already started from last quarter itself. So, during the quarter, finance cost includes the interest towards the solar term loan. After depreciation and interest, profit before tax and exceptional item has grown to about 39% to 7 crore. This is highest during the quarter since listing. Profit after tax has stood at 4.86 crores, up by 26% year-on-year basis, with a PAT margin of about 6%. Coming to half year, which includes three current quarter, that is half year ended September 2027, for the first half of current financial year, revenue recorded is 152 crores, rather 151.9 crore precisely, up by 12% year-on-year basis. EBITDA has also been increased to 33 crore, up by 8% at a healthy EBITDA margin of about 20% 22%. PAT was 8.17 crore, which is up by 12% on half-yearly comparative basis. When we look for the outlook for coming months, our Steriport line 3 has already started and commercial production as well as sales have been started from September itself. So, we expect it to contribute about 60 crores in the current financial year, that is FY '27, in top line and we expect that our earlier guidance of about 110 crore annual revenue will be met with the optimal utilization of the line. Captive solar is also expected to deliver about 9 crore of annual power cost saving and that will also help in EBITDA as well as bottom line improvement. We further look forward for the next expansion, which is SVP expansion, that was planned from the IPO money and the work is going on for the same. So, we expect that to start from Q1 of FY '28 and that will also add revenue as well as improve little bit bottom line because those are the higher margin segment where we expect the margin profile to be improved slightly. With that, we conclude our remarks and would be happy to take questions from shareholders and investors. Thank you once again for your continued trust in the Amanta Healthcare and we can now take the questions.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aniket Nikumbh from ABN Capital. Please proceed.
Aniket Nikumbh (ABN Capital): Hello, am I audible?
Bhavesh Patel (Amanta Healthcare Ltd): The voice is little broken.
Aniket Nikumbh (ABN Capital): Hello? Yes, can you hear me now?
Bhavesh Patel (Amanta Healthcare Ltd): Yes.
Aniket Nikumbh (ABN Capital): Okay, great. Sir, firstly congratulations on commencement of the new facility and your continued strong performance. I have two questions.
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