Q1FY26 Concall highlights
- Business Vertical Performance
- Generic Formulation CDMO:
o Performance driven by customer additions, expansion in product portfolio, and consistent
delivery of quality manufacturing products.
o Growth is mostly volume-driven, with a very small portion from prices
o Company aims to avoid over-dependence on any one customer; growth is coming from a
distributed set of clients
o Achieved a growth of 17.8% YoY, contributing ₹160 crores in revenue - Trade Generics:
o Growth driven by enhanced distribution reach, stronger market presence in previously
underserved regions, and increased product range
o Supported by government healthcare schemes such as Ayushman Bharat and Janoshidi
o Portfolio: Active portfolio of around 200+ products, with significant room for growth
compared to larger companies (600-800 products).
o Distribution Network: Working with over 1,000 stockists (as of Q4 FY25), with a longterm
aspiration to reach 5,000-6,000 stockists to cover India effectively.
o Competitive Intensity: Increasing attention from other companies, but large branded
generic companies face challenges like building new verticals and potential
cannibalization of their existing brands. The perception of trade generics as poor quality
products is diminishing, increasing acceptance at the patient level.
o Market Size (India): Estimates suggest the Indian trade generics market is around 30,000-
35,000 crores, though this is not officially validated. - Exports:
o Registered 45.4% YoY growth to 6 crores.
o Actively pursuing strategic initiatives to meet increasing global demand for high-quality,
affordable generic medicines.
o Focus on unlocking more markets and products in geographies like Rest of Asia, CIS,
and Africa
o In-licensing of certain Marketing Authorizations (MAs) for Europe is in process,
awaiting transfer approvals from regulatory authorities.
o No one-off elements in this quarter’s export growth, but the company advises viewing
export growth in a long-term scenario rather than quarterly.
- Strategic Initiatives
- Manufacturing Infrastructure:
o Plant 6: Recently acquired plant undergoing refurbishment for capacity expansion, on
schedule.
Expected refurbishment timeline: 2-3 more quarters before entering the
validation period.
Capex planned: ₹40-50 crores.
Commercialization: While full commercialization for all areas is expected next
year (FY27), some portions of the facility might be able to cater to requirements
this year (FY26).
Windlas Biotech Ltd
Depreciation impact from Plant 6 will begin when capitalization happens,
likely towards the end of FY26.
• Injectable Facility (Plant 4/5): Enhancing ability to serve diverse customer needs and
deliver a wider range of products efficiently.
Depreciation from the injectable plant was a factor in increased depreciation
last year, and its lower impact this year is contributing to depreciation
reduction.
The company does not provide exact ramp-up details or dosage-form-wise
revenue/cost breakups for injectables or other forms, preferring to emphasize
overall company performance.
Last year (FY25) was the first year of commercialization for the injectable
facility.
Expansion Plans: No current plans for Phase 3 expansion of injectables.
Expansion will be triggered when the facility approaches peak utilization
(close to ₹100 crores revenue from this segment). Such an expansion would
be a smaller timeframe (1-2 quarters) as utilities are already built in. - API Prices:
o While prices may fluctuate (sometimes down, sometimes up), growth ultimately comes
from volume when prices are low.
o The company primarily deals with general category products (not antibiotics), which
are less affected by high fluctuations seen in antibiotic API prices. They deal with close
to 400 different APIs.
o Lower API prices on a blended basis would mean volumes grew even more than the
reported CDMO growth (18%). - Capacity & Revenue Potential:
o With existing plants and Plant 6 capitalized, the company expects to deliver ₹1,000
crores in revenue, excluding injectables
o Including injectables, the peak revenue potential is about ₹1,100 crores.
o Current blended utilization levels are similar to Q4 FY25, and revenue and utilization
move hand-in-hand as most growth is volume-driven.
- Injectable Margins:
- On a fully developed business, the gross margins for injectables are higher compared to oral
solid drugs - Pure injectable CDMO players typically have EBITDA margins in the 18% to 21% range
- Potentially, 10-20% of the company’s revenue could eventually come from injectables at higher
margins.
