Senores Pharmaceuticals Ltd (SENORES) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Senores Pharmaceuticals Q2 and H1 FY '27 Earnings Conference Call hosted by DAM Capital Advisors. 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
Moderator: zero on your touch-tone phone. Please note that this conference is being recorded. Before we begin, I would like to point out that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors. Thank you, and over to you, sir.
Nitin Agarwal (DAM Capital Advisors): Hi, thanks, Shweta. Good afternoon, everyone, and a very warm welcome to Senores Pharma's Q2 and H1 FY27 earnings call hosted by DAM Capital Advisors Limited. On the call today, we have representing Senores Pharma management the Senores Pharma Mr. Swapnil Shah - Promoter and Managing Director, Mr. Sanjay Majmudar, Majmudar, Chairman, Mr. Deval Shah - Whole-time Director and Chief Financial Officer. I'll hand over the call to Swapnil bhai to make the opening comments, and then we'll open the floor for questions subsequently. Please go ahead, sir.
Swapnil Shah (Senores Pharmaceuticals Ltd): Thank you. Thank you, Nitin. Good afternoon, everyone. Thank you for joining us on the Q2 and H1 FY27 earnings call of Senores Pharmaceuticals Limited. We have uploaded our results on the stock exchanges and the company's website. I hope everybody has had the opportunity to go through the same. Building on the strong momentum of previous quarters, we have delivered another strong performance in Q2 and H1 FY27, achieving achieving our highest ever quarterly revenue and EBITDA. Revenue grew by 25% YoY in Q2 and 30% in H1 FY27, while EBITDA increased by 38% and 58% respectively. PAT registered healthy growth of 22% in Q2 and 31% in HY FY27. This performance reflects our well-defined strategic priorities, disciplined execution, and strong business fundamentals. With this, we have achieved our ninth consecutive quarter of delivering results surpassing our stated guidance. We remain committed to building on this momentum and delivering consistent and sustainable growth in years ahead. Our regulated market business continued to deliver strong growth, registering YoY growth of 28% in Q2 and 34% in HY H1 FY27, driven by portfolio expansion and differentiated sales and distribution channels. We have nearly doubled our ANDA portfolio from 34 in September 2025 to 64 in September 2026, of which 23 have been commercialized. In this quarter, we have received approval of one new ANDA and three sANDAs. sANDA is supplement ANDAs, which comprises four strengths. Out of this new approvals, we have commercialized three sANDA, and the new ANDA where we got approval this quarter will be launched in FY Q3 2026. On CMO/CDMO front, we have commercialized three ANDAs covering 12 strengths. Supported by established marketing partnerships, launch readiness, and calibrated manufacturing capacities, we expect a meaningful acceleration in H1 H2 FY27. We have also been investing heavily on our R&D for complex and specialty products, which also reflects in the increase of our molecules pipeline, which further comprises 41 newly developed molecules covering approximately 130 strengths at various stages, providing strong visibility for future growth. To cater to existing demand and future pipeline, we have also invested in capacity expansions. On emerging market, we with installation of pre-filled syringe line, we will support our growth for GLP-1 and other products. On the technology front, we have heavily invested on AI-backed applications for various functions and digitized operations by installing SAP HANA. Historically, H2 has always been stronger than H1 for us, and we expect this trend to continue in FY27 as well, supported by upcoming product launches and improved commercialization. Over and above this, Amerigen and Doraya are expected to start contributing from H2
Swapnil Shah (Senores Pharmaceuticals Ltd): FY27, providing an additional growth driver with significant scale-up potential over the coming years. Our CDMO, CMO business is also progressing well, with a robust pipeline of opportunities expected to translate into business over the next 12 months, further strengthening our growth outlook. Moving to emerging market business, revenue grew by approximately 21% in Q2 and 25% in H1 FY27. Profitability continued to improve with EBITDA margin consistently in low-double digit to mid-teens and the business has now turned cash positive. With European PIC/S approval coming in in HY FY 27, our regulatory credential will further strengthen and will enable us for new product registrations across emerging markets. Lastly, turning to our India-branded generic business, the significant expansion of field force and market reach has strengthened the foundation for a domestic critical care business. With this investments now in place, we are well positioned to drive growth and sustainable margin profile going forward. Speaking about our margin trajectory, we delivered healthy profitability growth in Q2 and H1 FY27, with EBITDA and PAT growing faster than revenue, reflecting the inherent operating leverage in our business model. It is important to note that Q2 and HY H1 performance includes the initial setup and operating cost for Siora and Amerigen, which were recognized in the P&L without any corresponding revenue contribution. With this ventures are expected to begin contributing in H2 FY27, a more meaningful ramp-up is anticipated from FY28 onwards. As revenue scale up, we expect to benefit from operation operating leverage and a corresponding improvement in our margin profile. Meanwhile, manufacturing operations at our recently acquired US FDA-approved plant Aspanar are scaling up well and remain on track with our internal expectation. As everybody knows, recently, we concluded a successful FDA inspection at our Aspanar facility with one minor procedural 483 that was received. We anticipated reaching full-scale operations and undertaking further expansion over the next 12 to 18 months, supporting our revenue growth and profitability. Backed by strong business fundamentals and a robust product pipeline and a clear visibility on upcoming launches, we remain on track to achieve our FY27 guidance of 30% to 40% revenue growth and corresponding 50% to 60% PAT growth. Looking beyond FY27, we expect to sustain this momentum with annual growth rate around 25% over next two to three years, supported by multiple growth levers and disciplined execution. With this, I would like to hand over the call to Mr. Dhaval Shah, CFO, to take you through the financial and operational performance. Thank you, and over to you.
Dhaval Shah (Senores Pharmaceuticals Ltd): Thank you, Swapnil. A warm welcome to everyone on our Q2 and H1 FY27 earnings call. I will take you through our financial and operational performance for the quarter and half year ended September 2026. Starting with the quarterly performance, the consolidated revenue from operations for Q2 FY27 stood at 192 crores, which as Swapnil said, is the highest for us, reflecting a very healthy growth of 25% YoY. Consolidated EBITDA for Q2 2027 stood at 58 crores, growing by 38% YoY, and EBITDA margin stood at 30%, which improved by 290 bps year-on-year. Profit after tax for the quar- quarter grew by 22% YoY and came to around 36.6 crores. Coming to the half yearly performance, consolidated revenue for H1 grew strongly by 30% YoY and came to 372.5 crores. Consolidated EBITDA for H1 stood at 111 crores, showing a robust growth of 58% YoY, and EBITDA margin stood at almost 30% in H1 FY27, reflecting a strong improvement of around 530 bps YoY. Profit after tax in H1 grew by almost 31% YoY and came to 67 crores. On the balance sheet form front, we
Dhaval Shah (Senores Pharmaceuticals Ltd): continue to make steady progress in improving cash generation from operations with operating cash flow reaching 38 crores in H1 of financial year 2027. We also strengthened our focus on working capital efficiency with a significant improvement in working capital days and the receivable days. This has supported stronger operating cash flows and improved overall balance sheet efficiency. Our capex for H1 of 20 FY27 is approximately 46 crores. With that, I would like to open the floor for questions. Thank you.
Sanjay Majmudar (Senores Pharmaceuticals Ltd): I'll just add what Dhaval said. This margin we talked about, the EBITDA of 30%, is the operating margin, operating EBITDA. The reported EBITDA is higher because of the other income. The floor may be open now for Q&A.
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 Gaurav Shukla from Finvestor. Please proceed.
Gaurav Shukla (Finvestor): Am I audible, sir?
Swapnil Shah (Senores Pharmaceuticals Ltd): Yes, yes.
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