CDMO business is uneven – Revenue doesn’t come evenly each quarter; it’s “lumpy,” so some quarters may look weak even if the year is good.
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No clear growth guidance – Management avoided giving exact numbers for CDMO or overall growth, which makes it hard for investors to predict results.
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Delayed return on big investments – They’re putting in huge capex for new technologies (gene therapy, ADC, fermentation), but these will take years to bring revenue.
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No income expected from new areas soon – Company clearly said there will be no meaningful revenue for 3–5 years from cell or gene therapy.
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Heavy capex risk – About ₹8,000 crore spending planned over 8 years; success depends on winning new contracts and executing large projects well.
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Lower asset utilization – Asset turnover is still below 1 ×; management admitted it may take two more years to reach better return ratios (~25%).
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Manpower challenge – There’s high competition for skilled workers in South India; the company admitted recruitment and attrition are ongoing challenges.
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Volatile margins – Past greenfield expansions hurt EBITDA margins before (fell to 12–14%); management hopes it won’t repeat, but risk remains.
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Dependence on ARV (HIV) segment – Still a major revenue contributor; any cutback in global HIV procurement could hit sales.
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Forex and interest-rate benefits may not last – Part of the profit boost came from foreign-exchange gains and lower interest cost, not just operations.
