Bajaj Healthcare Ltd (BAJAJHCARE) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Bajaj Healthcare Limited Q2 and H1 FY '27 Earnings Conference Call. As a reminder, all participants' 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 this 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 over the conference to Ms. Prachi Ambre from MUFG Investor Relations. Thank you, and over to you, ma'am.
Prachi Ambre (MUFG Investor Relations): Thank you, Iqra. Good evening, everyone. On behalf of Bajaj Healthcare Limited, I extend a warm welcome to all the participants on the Q2 and H1 FY '27 earnings conference call. Today on the call, we have Mr. Anil Jain, Managing Director, and Mr. Rohan Parikh, Chief Financial Officer, to provide insights on the company's operational and financial performance. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward-looking statements, which are completely based on our expectations, beliefs, and opinions as of today. These statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this, I would like to hand over the call to Anil sir for his opening remarks. Over to you sir. Thank you.
Anil Jain (Bajaj Healthcare Ltd): Very good evening to everyone. On behalf of Bajaj Healthcare team, it is my privilege to welcome you to our earning call for the second quarter and the first half of 2027. With us we have today our Chief Financial Officer, Mr. Rohan Parikh. Coming to the quarter, Q2 '27 was a strong quarter. Revenue from operations grew 18.9% Y-o-Y to ₹175.9 crores, and profit after tax grew by 26.9% 9%. For the first half, revenue grew about 15%, and PAT about 21%, in line with that guidance we shared with you last quarter. Beyond the numbers, the quarter shows good business momentum and progress across our strategic priorities. Our formulation formulation business rebounded strongly, growing 82% year-on-year, as we have expected at the end of Q1. API export grew 28.5% year-on-year. Together, API export and formulation crossed ₹100 crores in quarterly revenue and now makes up up to close to 60% of our revenue. Domestic API revenue mod- moderated during this quarter, but grew 10.1% year-in-year for the first half. Recently we have received an approval from Hon'ble NCLT for the acquisition of Genx Pharmaceuticals Private Limited. It it strengthen our formulation capabilities and broadens our portfolio as we build our formulation fran- franchise. The quarter also marked an important milestones in our specialty products journey. Bajaj Healthcare became the first company in India to receive DCGI approval to manufacture and market Cenobamate API, tablets in three, in six different strengths. We launched the tablet commercially in September through our eight marketing partners. Cenobamate is a next-generation anti-seizure medicine for the adult with partly onset seizure. It is a clear example for the differentiated specialty portfolio we are building. We also continue to widen our regulatory reach in the key international markets. In Brazil, we are progressing with ANVISA GMP certification process and and have identified 17 products for CBPF submission. In Europe, we have filed 12 CEP have been already filed till date,
Anil Jain (Bajaj Healthcare Ltd): products during this quarter, taking the total registration with with the KDFA to 17. In Egypt, three products are registered under the white list process, with 10 more planned in later phase. Alongside with this, we continue to invest in our manufacturing capabilities. The company is constructing a state-of-art commercial peptide manufacturing plant, scheduled to complete by 31st March 2027, with the installed capacity of 250 kgs per annum. This facility will be supported with solid phase synthesis and also with fermentation technology, focusing manufacturing of pharmaceutical, neutraceutical and cosmetic peptides. As planned, our oncology API plant will be commencing from second quarter of financial year 2028. The company has expanded its R&D facility, supported by team of over 80 experienced professionals. The R&D center focus on new product development, oncology, peptides, and API research. The company has increased its R&D spending to approximate 2.5% to 3%. The company is establishing a dedicated formulation plant at Nashik with a facility for oral, solid oral dosage form, tablet, sachets and capsules, nasal, oral oncology, nutraceutical and ointment. The plant is expected to operational by first quarter of FY '28. The company has established a business vertical focus on the formulation export with the objective of registering and marketing branded generic formulation across rest of the world. Dossiers has been submitted in several markets, including Africa, Myanmar, Philippines, Vietnam, and Latin America. The company has established a strong business foundation in industries presence and operational capabilities. Building up this legacy, the company is now strengthening its leadership structure by appointing a key management person who are experienced professional with proven expertise in their respective field. Last year, we have appointed Mr. Sree Kumar Nair, who has joined as Chief Operating Officer, with more than 40 years of experience in the pharma operation. Further, we have appointed Mr. A G Prasad, leading our Institutional Sales and Marketing, having 35 years of experience. Also, we have appointed Mr. E G Babu to lead our Global API Business, having 33 years of experience in API industry. Apart from this, we have appointed Mr. Baiju, who is taking care of our R&D, and he is our R&D head, Mr. Sujoy Banerjee for the ROW branded generic formulation, and Mr. Rahul Sanap as our oncology sales and business head for oncology division. This initiative marks an important milestone in our company journey towards building a more professional management, institutionally driven, and further ready organization, future ready organization. Looking ahead, our aim is to reach a revenue of INR 900 to 1,000 crore by FY '29 with EBITDA margin of 18% to 21%. With that, I will hand over to Mr. Rohan Parikh, who will take you to the financial performance for the quarter and the first half in more detail. Thank you, everyone.
Rohan Parikh (Bajaj Healthcare Ltd): Yeah. Thank you, Anil sir, and a good evening to everyone. Let me take you through our financial performance. Revenue from operations for the quarter was 175.9 crores, up by 18.9% YoY and 6.2% sequentially. For the first half of the year, revenue from operations grew 15.1% YoY to 341.5 crores from 296.8 crores in H1 last year. Domestic API revenue was 71.6 crores in quarter two, as compared to 76.3 crores in quarter two last year, and 92 crores in quarter one of this year. For the first half, domestic API revenue grew by 10.1% YoY to 163 crores. Export API revenue was 62.6 crores, up by 28.5% YoY from 48.7% in quarter two of last year, and up by 25.1% from 50.1 crores in quarter one this year. For the first half, API revenue grew by 11% YoY. The formulations revenue was 41.7 crores,
Rohan Parikh (Bajaj Healthcare Ltd): 82% as compared to the previous quarter, and 22.9 crores in September 2025 quarter. is nearly 79% growth. For the first half, formulation grew by 38.4% YoY to 65 crores. Gross profit grew by grew by 12.4% YoY to 85.4 crores with a gross margin of 48.3%, which is in line with quarter one of this year. EBITDA was 32.1 crores is up by 12.2% from 28.6 crores in quarter two, and up by 8.6% from 29.6 crores in quarter one of this year. EBITDA margin improved sequentially from 17.8 to 18.2. For the half year, gross profit grew by 14.2% to 165.8 with a gross margin of 48.3. EBITDA margin grew by 14.2% to 61.7 crores with EBITDA margin at about 18.1%. Profit after tax grew by 26.9% YoY to 14.1 crores, and PAT margin improved from 8% to improved to 8% from 7.5% in quarter two of this year. PAT grew to grew by 21.1% to 27.8 crores from 22.9 crores in H1 last year and the PAT margin improved from 8.1% from 7.7%. In short, the first half of the year delivered a healthy growth with profit and faster grew growing faster with revenue. On the balance sheet front, net worth stood at about 557 crores as of 30th September 2026, up from 533 crores in March 2026. Debt to equity remained healthy and comfortable at about 0.5x. This reflects the stronger financial position. India Ratings and Research upgraded our rating long term rating from A- stable to Ind A stable in this quarter and affirmed the short term rating to Ind A1. With that, I opened the floor for further questions. Thank you.
Moderator: Thank you very much. We will now begin with 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'll wait for a moment while the question queue assembles. The first question is from the line of Bhargav Buddhadev from Ambit Asset Management. Please go ahead.
Bhargav Buddhadev (Ambit Asset Management): Yeah. Good evening, team, and congratulations for a very good quarter. Sir, my first question is that during the quarter, you've got the NCLT approval for GenRx, which is a formulation facility. So, is my understanding correct that now that you have got this approval, possibly the formulation, which is being produced at Manjusar, may be shifted to GenRx, and Manjusar made out of fuel formulation exports going forward? That is my first question. My second question is that as on March '26, we've seen almost 110 DMF filings having filed and this is a 100% growth on a YoY basis. So, when can we see revenues coming in from this DMF filings that we have done? And my last question is that we've seen some increase in terms of inventory on the working capital front, so is it more strategic in nature given the raw material inflation and is it fair to say that maybe by year end the working capital can also normalize? These are my three questions. Thank you.
Anil Jain (Bajaj Healthcare Ltd): Thank you, Bhargavji. Regarding the NAtix facility, it is a strategic decision because our formulation division the sales is increasing and we need a capacity for next 2 to 3 years. So, the new molecules which we are developing will be manufactured at the Baroda facility because that is an approved facility and the new NCLT face- which we got from NCLT will be doing all the other formulations which are going to the different markets. Regarding the second question of 110 DMF, as you know the DMF filing, we have done. Now, we are awaiting the approvals from the regulatory bodies of the respective countries. As and when we will be getting, it takes approximate 2 to 3 years to get an approval and to start the business. So, it's in a sequence form. As As we know we have already got eight CEP approvals, so that product already we have started a market
Anil Jain (Bajaj Healthcare Ltd): and this will take another 1 to 2 years to get the business. Third, as regards to the working capital, as you know, there is a dispute in the Gulf area. So, to our our facilities should not be stopped in between. So, we have increased our inventory.
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