Shilpa Medicare Ltd.Record quarter as revenue jumps 43% and credit rating hits AA

Shilpa Medicare delivered its fourth consecutive record quarter, with revenue up 43% YoY to Rs. 469 crore and EBITDA up 42% to Rs. 139 crore at a 30% margin.

PAT grew 115% YoY to Rs. 101 crore, aided by a one-off deferred-tax reversal, with management guiding tax rates to normalize around 25% going forward. Growth was broad-based: Formulation revenue more than doubled on a complex US FDA portfolio, Biologics grew 42% on licensing and CDMO deal momentum, and API grew 15% on expanded capacity and new specialty CDMO clients, including two Japanese customers onboarded this quarter.

ROCE improved to 12.5% from 8.8% in FY25 (18.3% excluding still-early Biologics and NBE investments), net debt-to-EBITDA fell to 1.3x from 6.7x three years ago, and the credit rating was upgraded from A+ to AA-. Management, opening the call by reframing the company's own transformation from a debt-heavy API business to a first-in-class innovator, described FY27 as the start of a 'harvesting' phase after years of reinvestment in Biologics, CDMO, novel drug delivery and NBE assets -- while, as a matter of policy, continuing to decline formal numeric guidance or product-level financial disclosure on nearly every analyst question.