H1FY26:
• 21% rise in own-brand sales
• 14% growth in API external sales
• CDMO registered growth of 8%
• Exports registered growth of 10%
• In percentage, the EBITDA is increased from 22.36% to 23.08%. Derma division has generated a positive EBITDA of Rs. 11.32 Lacs in the H1’26. The EBITDA % of Oncology is 24.12%.
• Beta has acquired an oncology intermediate facility, enabled further backward integration and reduced dependency on Chinese imports. This is expected to support margin improvement going forward. This will further strengthen the company’s ability to produce robust, compliant DMFs for regulated markets and facilitate quicker, more effective dossier submissions in export markets.
• Management expects to better its financial performance in the second half of FY26, targeting revenues in the range of ₹420– ₹430 crore for FY26, with EBITDA margins between 23% and 25%. The company expects sustained momentum in own-brand sales and a healthy international order pipeline, driven by enhanced market penetration and ongoing portfolio expansion.
• The company has also filed for two additional NDDS (Novel Drug Delivery Systems), which, once approved, will again be first-in-India introductions. Additionally, two new drug applications have been filed with the DCGI, marking another step toward product innovation and therapeutic diversification.
• After successful audit of Mexico (COFEPRIS) Beta has successfully filed 16 dossiers and the registration is expected in next one year.
• Company’s focus now is to cater the regulated markets and is working very aggressively to compile state of the art dossiers which can be filed.
• Over the last six months, Beta has filed close to 80 more dossiers across key international markets and expects continued export strength, supported by new product launches, capacity enhancements, and deeper penetration into regulated markets.
• Launched Italian derma fillers in Indian market. We have an exclusive in licensing agreement with Promo Italia, a leading cosmeceutical company of Europe dealing in Skin fillers and Mesotherapy.
Cosmeceutical brands delivered growth of 40%, reflecting strong market traction.
• Top 10 brands are contributing more than 50% of domestic Own brand oncology sales & growing at 22%
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Active registrations (H1’26): 268 (vs 231 in H2FY25)
Total pipeline registrations: 600+ (Same as Previous HY)
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(Same as Previous HY)
CONCALL NOTES:
• We have got a call from NSE and they have said that they will be giving principal approval to migrate to the main board. So maximum 10 days, we will be migrating on NSE’s main board.
• Although the growth is 13%, but there were some factors by which production was a challenge for good 15-20 days. There were bad rains across North India, and we had two audits that was from Mexico and Colombia, which took 12-days as we were going for complete plant audits and it was done successfully without any critical observations.
So, the first half, actually, I told you we had an order book, we could not process the orders by September. So, Rs.10-12 crores of order will be dispatched in the month of October and November.
• In process to file 15 more dossiers in the next six months in Mexico.
• We have also cleared INVIMA audit for injectables and are ready to file 10 dossiers by this year end.
• DOMESTIC OWN BRAND: The single molecule that is Caxfila OS Suspension, which we launched last year, is now close to a 10-crore brand with a larger prescriber base.
The total number of prescriber base has increased by approximately 8% in this first half of the year.
• EXPORTS: Although the growth in exports has delivered 10%, that is from Rs.39.7 to Rs.43.2 crores, but this will totally change in the next half of this financial year.
Why sales growth was muted: So, the international market globally, it is dominated by tender business. India is the only market in oncology, which it has a private business and a tender business. So, globally, 90% of the market is tender business. So, most of the tenders tend to come in the latter half of the year. So, that is between October to November. So, the award goes somewhere in December. So, the sales will reflect generally from January, February and March. So, that is why when I was telling about the export business, I clearly said that, that you will see a different picture altogether in the second half.
So, what we expected, there have been a lot of registrations which have come up recently to us in the last two, three months, like we also mentioned in our presentation that 43 new registrations have come up. And as now the time of tenders have come, since I explained you that most of the tenders come in between October and December, because internationally the financial cycle is from January to December. So, they tend to close their tender by December itself and allot budgets. So, we expect a good run rate to come from the second half of the year.
So, the next half, if we see from October to December, in October only we have filed around three major tenders, this month, we are filing two more tenders in different geographies. So, that is why we know that as compared to first half, if we did Rs.43 crores, we will be crossing Rs.100 crores of top line in exports for next half.
• We are in the process of doubling our regulatory team and to file 150-plus dossiers in the coming two years.
• We have allocated a certain budget to do all the bioequivalences for the 11 identified products in orals and apply for the registrations in the regulated markets.
• Europe market: The Europe approval has been delayed for long, but finally it will happen in the first quarter of next year, that is between January and March. The preparations of the doses and the developments of products for Europe market and all the regulated markets has already started.
We will be the first cytotoxic suspension plant to be inspected by Europe, which will give us an edge as a premier cytotoxic player globally.
• CDMO: We have added many new products with our current partners. With increase in capacity at Adley formulation plant and being backwardly integrated, BDL poised to become the most trusted CDMO partner in India.
• API: At Adley lab, we have increased the number of people in R&D to support the new development across cytotoxic segment. The first international audit from Mexico has been completed and the CAPA has been submitted to get the approval.
Two new products have already been delivered to the formulation plant in this half and will be ready to launch this year. We are also developing four new products which will be given to the formulation to be launched in the next two years.
Three new products have already been developed at API plant and given to formulations for which the DCGI filing has already been done
• COSMETOLOGY: The prescriber base has grown almost by 70% in this half of ‘26 as compared to last year.
We see between the sales between Rs.30 to 50 crores in the next three to five years from cosmetology
Italian fillers: So, we just got the registration last month and now we are conducting all the CMEs through different doctors, and the doctors are joining from Italy to train the Indian doctors about using these fillers.
Meso-Fills: We are also registering some Meso-Fills which is again a niche market to be tapped and will further drive growth for this division. So, Meso-Fills is one therapy which is being promoted in India as an unregistered source. So, most of the Meso-Fills are being imported from Korea. So, this will be the first registered product in India, which will be having some vitamins from the European company.
The total market size which we analyze is close to Rs.1,000 crores. So, we want to have and we will have a very good market share in coming three to five years in this market. If it is Rs.1,000 crores, so we should be having at least Rs.50 to 100 crores market share.
So, the total SKUs in derma we have is around 24. And right now, we are not planning to launch more SKUs, rather we are more concentrated on the current SKUs. It is about like the target is that each SKU should come up to certain value. If 70% of the SKUs will come to certain value, then we will be introducing more SKUs.
• Going ahead, Beta has planned a robust portfolio both in onco and derma. In oncology, we are expecting two more NDDS to be launched next year which will be again the first time in India. Also, we have filed three new drugs which the API has also developed in-house. This will give us a driving growth for the next three to five years in the domestic market. As the main focus lies on the export side, we have planned everything and now the execution has already started and prioritized to make our presence in the regulated markets. Simultaneously, the growth will also be derived by the API sales in the international market.
• Reduction in gross margin: Our gross margin on a consolidated level is 1.5% less than the last year. This is basically because of the product mix only. I mean, in CMO, some products are there which we cannot keep it constant every time. Some price erosion is there, something like that. So, it is just because of product mix. It is not more than 1.5% less. So, last year it was 52.8% and now it is 51.35%
So, sometimes what happens is like there is demand for Platin groups, right? So, for Platins, to continue the business with all the partners, you have to supply all the products. And for particularly those products, there the margins are very less. So, that is why there might be slight difference between the GP margin. Otherwise, if you see on the export side and the own branded side, the GP margin rather have increased by addition of new products.
• PLATIN BUSINESS: How much of the Platin business do you do in the three segments, which is the third-party, the brand and the exports?
Management: So, Platin business, especially on every aspect, we tend to do very less, but still no chemotherapy is covered without Platins. So, if a patient goes to a doctor, the basic protocol starts from a Platin only. So, we cannot avoid giving a Platin to anyone, whether it is in the CDMO business, whether in the exports, whether it is in the own brand. So, the quantification of a Platin business, we cannot give it to you right now, but Platins, we cannot deny, it is like a basic. Supposing you are going to a dermatologist, supposing you are going to a cardiologist, they will always give you PPI along with any medicine. So, this is the basic protocol. Even if you go for immunotherapy, the Platin has to be given. But what we do is that supposing the demand is for 10,000 vials, so, we tend to give only 2,000, 3,000 vials only. So, this is how we are controlling our margins in spite of getting a growth in the sales also.
What percentage contribution would be coming from Platins? Rahul Batra: It is less than 7% only. The GC we earn in the other product where it is 60%, 70% or 50%, but in Platins the GC comes down to 10, 15%.
• So, every product has a cycle. So, once you launch a product, first year, it is always low, second year, it picks up the pace, then third year, that product will contribute more margins. So, this will bypass the product which has less margins. And we as a company, we are focusing on developing new molecules. We are launching new molecules every year. And this year, after this Methotrexate you will see the picture change in the next half.
• We said we will continue to grow at 20% to 25%. Although this time the growth was only 13%, but we will be having strong numbers for the next half of the year.
• GST impact: So, the sales were stopped for five, seven days, but eventually we have built them up and there is no loss in the sales.
• Intermediate plant: So, fortunately, we got an opportunity where we have our own current API plant right now, like only 50, 70 meters away, we got a plant who already had the license, so, we acquired that facility. And now we are just building up the facility. In the next six to eight months, our target is that we will be building up this facility and making our own intermediates. So, the total CAPEX involved in acquiring the plant that was around Rs.9.45 crores, and there will be additional CAPEX requirement to build up for the plant, machinery, everything, additional will be around Rs.15 to 20-odd crores.
Apart from this, the process of developing from intermediates to the KSM from which we are already manufacturing the API, has already started by our R&D team.
• UTILIZING EXCESS CASH: The cash we have just kept it for the development of the new product, or maybe there can be an opportunity tomorrow for some inorganic growth also and maybe there is an opportunity to have some good market globally. So, this is why we have kept some cash aside there. Also, we are planning to get in-license with some biosimilars. So, we have kept some cash for that purpose only.
• Convertible debentures will be converted next year June, and then you will see that borrowings have gone away.
• BIOSIMILARS: We are actually planning, we have initiated many talks, we are discussing many things rather, some things have been signed as NDAs also. So, we are doing some things on the biosimilar side, but till the time it is done officially, we cannot give an announcement right now. But yes, since no oncology company is full without biosimilars, so we are into that area now, and we will be coming up with some biosimilars maybe in the coming three, four years.
• So, the only target is that each and single product in oncology, which we call cytotoxic, especially in the oral side, which become operated in different countries. So, we want to be at least second or the third generic to enter that market. So, the single product has a lot of potential. That is why our focus has shifted entirely from doing the generic business basically to be a second or third generic in that particular country.
• We are just inducting six new people in the regulatory side and all the regulatory will be handled from HO now. So, all these changes are happening in a very fast track. Even, not only this, we have allocated certain budget of close to around Rs.15-odd crores only to get bioequivalence done for good 11 products. Those products are ready. Those products, the CDP is already done. Now, we are in a process of finding the CRO to get the bioequivalence. Once the BES is done in the next six to eight months, we will be ready with the dossiers and we will be finding in different countries altogether.
THINGS TO TRACK
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EXPORTS DIVISION PROGRESS : Will sales bounce back sharply and touch 100cr in H2? Track progress in terms of Dossiers filed and approvals received and products launched and sales started in newer geographies.
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COSMETOLOGY PERFORMANCE : What would be the impact of Italian company products on overall cosmetology sales? How would margins shape up?
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DOMESTIC BRANDED DIVISION PROGRESS : In terms of sales, prescribers and hospitals covered. And products launched.
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API DIVISION PROGRESS : In terms of new products commercialized and new products developed and External sales growth.
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BIOLOGICS SEGMENT PROGRESS : As this is more complex and a new space for the company, can it successfully develop and launch products in this segment?
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INTERMEDIATE PLANT PROGRESS : Can they successfully commission it on time? What impact will it have on margins? How many Product launches?
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R&D FACILITY DEVELOPMENT : Will new R&D Centre increase product development speed and result in increased product basket?
