Beta Drugs Ltd (BETA) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen you are connected for the Beta Drugs Limited conference call. Please stay connected, this conference will begin shortly. Participants you are connected for the Beta Drugs Limited conference call. Please stay connected, the conference will begin shortly. Thank you.
Moderator: Ladies and gentlemen, good day, and welcome to Beta Drugs Limited Q2 & H1 FY27 Earnings Conference Call, hosted by PhillipCapital PCG. 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 over to Mr. Sri Surya K from PhillipCapital PCG Desk. Over to you, sir.
Sri Surya K (PhillipCapital PCG): Thank you. A very good afternoon, everyone. On behalf of PhillipCapital Private Client Group, I welcome you to the Q2 and H1 FY27 Earnings Conference Call for Beta Drugs Limited. Joining us today from the management are: Mr. Rahul Batra, Chairman and Managing Director; Mr. Ashutosh Shukla, Director of Sales and Marketing; Mr. Nipun Arora, CFO; Mrs. Rajni Brar, CS and Compliance Officer; along with Mr. Natarajan, Head of Strategy. I will now hand over the call to Mr. Rahul Batra for his opening remarks. Following his address, we will open the floor for question-and-answers. Over to you, sir.
Rahul Batra (Beta Drugs Ltd): Thank you so much. Good afternoon, everyone. On behalf of Beta Drugs family, we wish you all a very happy Diwali. To start with, let
Rahul Batra (Beta Drugs Ltd): the key financial highlights. The revenue growth of Beta is at 29.2% as compared to H1 FY '26. The EBITDA margin grew by 0.10%, that is from 23.08 to 23.18%. The PAT showed a significant increase from 24 crores to 34 crores, which is almost 45% growth as compared to H1 of last year. Now, before going ahead with the key highlights, we want to take you on the brief of the impact of trade margin capping on the MRP. The trade margin capping is nothing. This is as which was like which was declared in year 2019. Now, to give you a brief detail on this, of our total branded business, which we did in FY '26 was 123 crores. The orals comprise of 60 crores in that business, which has no impact at all from the recent NPPA guidelines, as the majority is being sold through distributors. The injectable business is 63 crores out of total business, which of which, 50 crores come from the scheduled drugs, whose MRP is already defined by the government, so that will not have even a single impact. The 13 crore injectable business, which comes under the non-scheduled drug, will also have no impact on our margins and growth, as well as realization. The overall impact on the company seems zero or negligible. Now, let us take you to the key highlights of H1 '27. The own branded business has grown by 17% in HY '27 as compared to H1 FY '26. In exports, we have filed 76 new dossiers in different geographies, which include four dossiers filed in Europe. We have started bioequivalent studies with EU RLDs to be filed in which we have five five products to be filed in regulated markets, of which one is already concluded and rest are in process. We have successfully launched four new products in FY '27 and on a plan to launch six more in coming months. With the effort and dedication from the sales team, we've successfully made five brands more than 5 crore, in which one brand almost touching 10 crore sales annually. Beta has finally got a break through in Tata Hospital, and we have got that some brands approved in this H1 FY '27. The latest acquisition of Nibin Lifesciences has delivered a strong growth of 75% as compared to H1 FY '26. The API business, too, has delivered 30% growth in H1 FY '27. Now, discussing the businesses vertical-wise. First is own brands. The own brand business showed a growth of 17%, as discussed earlier. The OSF, oral solid forms contribution to the business has increased up to 50% in total business. We have successfully launched four new products and six more to be launched this year. As discussed, we have got successfully our first purchase order from the Tata Hospitals. We are on track to do 150 crores sales from our own brand for this FY '27. Coming on to the exports. We have done 43 crores of sales in the first half of FY '27, and we are on track to do our target for FY '27. Apart from one opportunity, which we had in 2026, where we did some opportunity sales of 25 crores and the balance 16 crores would would that came from the the territories out of total 41 in FY '26, we have done more than 50 26 crores as apart from the 15 crore sales that we have done in FY '27. Recently, we have got 35 new registrations and on a verge to get 50 more registrations from this year. We have also successfully cleared the audit of Azerbaijan and filed 20 new dossiers, of which 12 registration registrations are expected in FY in in by in FY '27. We have also filed four dossiers in EU and expected to receive an audit in this
Rahul Batra (Beta Drugs Ltd): basis. At Adwhinney, we are evaluating to launch our first recombinant in next 2 to 3 years. Adwhinney will continue to deliver a strong growth in this segment. In Derma, we have seen a consistent increase in the secondary sales. The PCPM grew by 30% to reach an average PCPM of 2.5 lakh in this half of FY27. Recently, we have registered and our first consignment is on the way to be delivered for high-end cosmetics from Europe. We have successfully in-licensed some products, which will be launched in December 27 27th this 26th this year. Derma will make a great brand in next 2 to 3 years, which we are aiming for. The CMO business has grown by 21% in FY in H1 FY27. The NDDS has played a big role in getting new partners. We have successfully partnered with 2, 3 new Indian giants for this CMO business. The CDMO business will keep up the pace in the future as well. The API business has shown a growth of 29% as compared to H1 last year. With the ongoing investment in the new facility of intermediates, the API business will get a big boost in terms of margins and supply. The key focus on this new investment is to step our presence in the export market with intermediates in-house. The API business has lot of room and opportunity to grow further. We have scaled up the new products development and will be the first one to launch many molecules as a first generics in India only with the support of API. To conclude, at BETA, we'll continue to deliver 20%-25% growth for next 3 to 5 years with the sustained margins between 23% to 24%. We are constantly evaluating biosimilar market. We are looking to tailor it capital-efficient strategy for both marketing and manufacturing. We are also evaluating to manufacture oncology medicines outside India, where we already have on the ground presence. Thank you. Now, we are looking forward for the questions.
Moderator: Thank you very much, sir. 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 questions. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.
Moderator: The first question is from the line of Disha from Sapphire Capital. Go ahead, ma'am.
Disha (Sapphire Capital): Hello. Am I audible, sir?
Moderator: Yes, you're audible, ma'am.
Disha (Sapphire Capital): Yes, thank you so much for this opportunity. A couple of questions, sir. Firstly, congratulations on a good set of results, sir. So, sir, we've seen our EBITDA margins at around 22%. So, going ahead, I think you're guiding for around 23-24% sort of margin. What do you think will be the key growth drivers? And for the next year, what sort of margins should we look at given the increasing contribution from the CMO business, the API business and the Nivien business?
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