Pharma stock with revenue and EBITDA growth guidance of up to 35% to look out for

SYNOPSIS: Supriya Lifescience is in focus as management guides for 20 percent FY26 growth and 130 percent revenue expansion in three years, driven by capacity ramp-up, product launches, and CDMO opportunities.

Shares of a cGMP-compliant business with a strong track record in API manufacturing and a focus on products from a variety of therapeutic segments are in focus on the stock exchanges, as the company expects 20 percent revenue growth in FY26 and nearly 130 percent in 3 years.

With a market cap of Rs. 6,027 crores, shares of Supriya Lifescience Limited closed in the green at Rs. 748.85 on Friday, up by around 1.4 percet, as against its previous closing price of Rs. 738.8 on BSE. The stock has delivered negative returns of around 4 percent in one year, but has gained by around 3 percent in the last six months.

Management Guidance

The management has reiterated its FY26 guidance, projecting around 20 percent revenue growth and an EBITDA margin in the range of 33-35 percent, while indicating that performance is expected to improve meaningfully in H2 FY26. The softness seen in Q1 was attributed to planned capacity-related work, including debottlenecking efforts to make “Module E” fully operational, which temporarily constrained output. 

The company is also targeting revenue of up to Rs. 1,600 crore over the next three years from its Lote MIDC (Ratnagiri) and Ambernath facilities, representing a nearly 130 percent increase from Rs. 696 crore recorded in FY25.

Looking ahead, management expects a recovery driven by the execution of unmet Q1 demand in Q2, with some spillover into Q3. Additional growth momentum is expected from steady expansion in the core portfolio across therapies such as anaesthetics, anti-diabetics, anti-anxiety, vitamins, and ADHD, supported by new product launches – two already introduced and two more in the pipeline. 

Further upside is anticipated from the commercialisation of CMO/CDMO opportunities, led by the DSM project and other pipeline initiatives. Management emphasised that the full recovery should become clearly visible in Q3 and Q4.

Management highlighted that the DSM project is currently the only CDMO/CMO engagement that has reached the commercialisation stage. The project carries a peak revenue potential of around Rs. 60-70 crore annually, with management referring to both “around Rs. 60 crore” and a broader Rs. 60-70 crore range. For FY26, the contribution from the DSM project is expected to be in the range of Rs. 25-30 crore, largely driven by volumes from food and feed applications.

Looking ahead, two additional product launches are lined up. An ADHD-related product, while a contrast media product is expected to be launched toward the end of Q3 or early Q4.

Supriya Lifescience has undertaken significant capital investments to expand its manufacturing footprint, committing Rs. 160 crore toward the development of its Ambernath facility and Rs. 350 crore for the Patalganga unit, with the expenditure planned to be deployed in a phased manner.

The company’s capacity utilisation improved to 78 percent in the first half of FY26, up from 70 percent in FY25. To support future growth across its various business segments, the company has also acquired three separate parcels of land located near its existing manufacturing facilities.

In Q2 FY26, Supriya Lifescience Limited reported a strong operational performance, with revenue from operations rising to Rs. 200 crores, an increase of around 38 percent QoQ and 20 percent YoY. Net profit for the quarter stood at Rs. 50 crores, representing a rise of around 43 percent QoQ and 9 percent YoY.

From a geographic perspective, European markets continued to be the largest contributor, accounting for 37 percent of the company’s total revenue in Q2 FY26. Meanwhile, the contribution from Asia and Latin America strengthened both sequentially and on a year-on-year basis. Asia’s share increased to 34 percent in Q2 FY26 from 32 percent in Q1 FY26, while Latin American markets contributed 21 percent, up from 17 percent in the previous quarter.

Founded in 1987, Supriya Lifescience Limited is primarily engaged in the business of manufacturing bulk drugs and pharmaceutical chemicals, with a primary focus on building intermediates and APIs for innovators and generic firms. The company is headquartered in Mumbai, and its facility is located in Khed, District Ratnagiri.

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