Loading...
01/11 04:04
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Financial performance is mixed with strong EBITDA growth but declining annual EBITDA margin. Concerns include rising expenses, unclear tariff impacts, and competitive pressures on semaglutide. Positive aspects are stable US price erosion and strong US business growth. Management's lack of clarity on tariffs and severance costs adds uncertainty. Overall, the mixed signals suggest a neutral stock price movement.
Revenue Q4 FY 2025 $996 million, reflecting a year-over-year growth of 20% and a sequential increase of 2%. The growth was driven by the strategic acquisition of the consumer health care business in nicotine replacement therapy, which added INR597 crores in Q4.
Revenue Full Year FY 2025 $3.8 billion, representing a growth of 17%. This includes contributions from the acquired NRT business and a 12% growth excluding NRT.
Gross Margin Q4 FY 2025 55.6%, reflecting a year-over-year decline of 300 basis points due to reduced manufacturing overhead leverage and higher milestone income recognized in the comparative period.
Gross Margin Full Year FY 2025 58.5%, consistent with FY 2024.
SG&A Expenses Q4 FY 2025 $282 million, marking a year-over-year increase of 17% due to the recently acquired NRT business and higher logistics costs.
SG&A Expenses Full Year FY 2025 $1.1 billion, up by 22% year-over-year, driven by the NRT business and other commercial activities.
R&D Investment Q4 FY 2025 $85 million, representing a year-over-year increase of 6%.
R&D Investment Full Year FY 2025 $320 million, reflecting a year-over-year increase of 20%, focused on building a differentiated pipeline.
EBITDA Q4 FY 2025 $290 million, registering a year-over-year growth of 32% and an EBITDA margin of 29.1%, an increase of 267 basis points year-over-year.
EBITDA Full Year FY 2025 $1.1 billion, reflecting year-over-year growth of 11%, with an annual EBITDA margin of 20.3%, down from 29.7% in FY 2024.
Profit Before Tax Q4 FY 2025 $235 million, up 25% year-over-year.
Profit Before Tax Full Year FY 2025 $899 million, a year-over-year growth of 7%.
Profit After Tax Q4 FY 2025 $187 million, up 22% year-over-year.
Profit After Tax Full Year FY 2025 INR5,655 crores, reflecting year-over-year growth of 2%.
Earnings Per Share Q4 FY 2025 INR19.1.
Earnings Per Share Full Year FY 2025 INR68.1.
Operating Working Capital FY 2025 INR1,590 crores, a reduction of INR192 crores compared to December 31, 2024.
Capital Expenditure FY 2025 INR2,699 crores.
Free Cash Flow FY 2025 INR1,332 crores before acquisition-related payouts.
Net Cash Surplus FY 2025 INR2,454 crores.
New Product Launches: This quarter, we launched seven new products bringing the total for the fiscal year to 18.
New Product Launches in Europe: This quarter, we launched 10 new generic products in Europe, bringing the total for the fiscal year to €39 million.
New Products in Emerging Markets: During the quarter, we launched 26 new products across various emerging market countries, bringing the total for FY 2025 to 85 products.
Market Expansion in North America: Our North America Generic business generated revenue of $418 million for the quarter, reflecting a year-on-year growth of 7%.
Market Expansion in Europe: Our European Generics business reported revenues of €140 million for the quarter, reflecting a year-on-year growth of 142%.
Market Position in India: We have maintained our position as a 10 largest player in Indian Pharmaceutical Market, IPM, and have marginally outperformed the IPM.
Operational Efficiencies: We continue to maintain a disciplined cost structure while strategically allocating resources to strengthen existing business and expand into new growth segments.
R&D Investment: R&D expenditures for the quarter stood at INR726 crores, $85 million, representing a year-over-year increase of 6%.
Strategic Acquisition: The phase integration of our newly acquired nicotine replacement therapy NRT business is moving forward as planned.
Biosimilar Strategy: We secured exclusive commercialization rights for the daratumumab biosimilar candidate on Henlius in the United States and Europe.
Competitive Pressures: The North America Generic business experienced price erosion, which impacted revenue despite increased volume and successful new product launches.
Regulatory Issues: The API manufacturing facility in CTO2 received VAI status from the U.S. FDA following a successful GMP inspection, indicating ongoing regulatory scrutiny.
Supply Chain Challenges: Higher prices impacting logistics costs were noted, contributing to increased SG&A expenses.
Economic Factors: The emerging market generic business faced unfavorable foreign exchange conditions, which affected revenue performance.
Impairment Losses: An impairment loss of INR77 crores ($9 million) in Q4 and INR169 crores ($20 million) for the full year was reported, related to adverse market conditions affecting product-related intangibles.
Revenue Growth: Achieved record high revenue exceeding $3.8 billion for FY 2025, with a 17% growth year-over-year.
EBITDA: Crossed $1 billion threshold in EBITDA for the first time, with a margin of 28% for FY 2025.
Strategic Acquisitions: Acquired a consumer health care business in nicotine replacement therapy, contributing INR1,202 crores to FY 2025 revenue.
Biosimilars Strategy: Secured exclusive commercialization rights for daratumumab biosimilar in the U.S. and Europe, and signed agreements for other biosimilars.
R&D Investment: R&D expenditures for FY 2025 were INR2,738 crores, reflecting a 20% increase, focusing on differentiated pipeline.
Future Revenue Expectations: Expect strong momentum to continue into FY 2026, with ongoing growth in core businesses and new product launches.
EBITDA Margin Outlook: EBITDA margins expected to remain resilient, exceeding 29% for Q4 and over 28% for FY 2025.
Tax Rate Guidance: Expect effective tax rate for FY 2026 to be similar to the current fiscal year.
Capital Expenditure: Capital expenditure for FY 2025 was INR2,699 crores, with plans to maintain financial discipline for future growth.
Dividend Payment: The Board has recommended a payment of dividend of INR8 per equity share of face value of INR1 each, equivalent to 18% of the face value for the year ended March 31, 2025.
Share Buyback Program: None
The earnings call reveals mixed aspects: stable financial health with strategic R&D investments and promising biosimilar launches, but concerns over competitive pressures and legal challenges. Strong growth in India and emerging markets is positive, but price erosion in the U.S. and unclear guidance on semaglutide pricing impact sentiments. Given these balanced positives and negatives, a neutral stock reaction is expected.
Financial performance is mixed with strong EBITDA growth but declining annual EBITDA margin. Concerns include rising expenses, unclear tariff impacts, and competitive pressures on semaglutide. Positive aspects are stable US price erosion and strong US business growth. Management's lack of clarity on tariffs and severance costs adds uncertainty. Overall, the mixed signals suggest a neutral stock price movement.
The earnings call presents a generally positive outlook with strong profit margins and increased R&D investment. The Q&A section highlights stable pricing in North America, potential growth acceleration, and high-value launches expected soon. Despite some unclear responses, the overall sentiment is optimistic with a focus on future growth, particularly in biosimilars and the US market. This aligns with a positive short-term stock price prediction.
The earnings call indicates strong financial performance with double-digit growth in EBITDA and profit metrics, alongside a positive EPS guidance. Despite some concerns over price erosion and supply issues, the strategic collaborations, acquisitions, and product launches are expected to drive future sales. The Q&A suggests a robust pipeline and market expansion plans, particularly in emerging markets. The company's solid cash position and shareholder return plan further support a positive outlook. However, some uncertainties in the U.S. market and lack of specific guidance details slightly temper the overall sentiment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
