Sanjivani's Path to Stronger FY26 Performance

Ashwin Thakker

— 2 min read
  • Projected FY26 revenue: Company projects INR 75-80 crores.
  • Anticipated FY26 EBITDA margin: Approximately 15%.
  • New Pune plant (SPL Infusion) to begin commercial production by early September 2025, targeting 65-70% capacity utilization in its first year.
  • CDMO business segment expected to achieve 20% growth in the current year.
  • EBITDA margins forecasted to improve in FY27 as recently launched products mature.

Sanjivani Paranteral Limited recently outlined its forward-looking guidance for FY26, signaling a confident trajectory for growth and operational enhancements. Despite navigating global supply chain disruptions, the pharmaceutical company projects robust revenue targets and stable margins. This earnings call transcript review delves into their strategic vision, highlighting key initiatives set to drive future performance.

Financial Trajectory and Market Strategies

Sanjivani Paranteral Limited provided clear financial guidance for FY26, projecting a total revenue between INR 75-80 crores. The company also anticipates maintaining its EBITDA margins around 15% for the current fiscal year. Looking further ahead to FY27, management expects EBITDA margins to improve, driven by the maturation of recently launched products over the next 3-4 years. As Srivardhan Khemka noted,

“when we add new products, the economies of scale are not there. Once the product is mature... then our EBITDA margins are bound to improve.”

The company's growth strategy centers on expanding its presence in emerging markets, with Latin America identified as a significant growth driver. Despite Q1 FY26 experiencing some logistical constraints due to global factors like Red Sea disruptions and container availability issues, management expressed confidence that these temporary supply chain bottlenecks would normalize progressively over the year. This normalization is crucial for delivering the projected stronger performance in the latter half of FY26.

Operational Milestones and Portfolio Expansion

Significant operational milestones are on the horizon, particularly with the new SPL Infusion plant in Pune. Sanjivani expects to receive the commercial license for this facility in August 2025, with commercial production commencing by the end of August or early September. This unit is slated to ramp up to 65-70% capacity utilization within its first year, contributing substantially to the company's manufacturing capabilities.

Furthermore, Sanjivani is actively expanding its product portfolio, having already added eight new products in Q1 and Q2 FY26. The company strategically scales both oral solids, offering easier market entry, and injectables, a niche segment known for better margins. The Prague JV for nutraceuticals is also progressing, with initial commercialization ongoing and financial contributions expected to be visible by Q4 FY26. This focus on new product introduction and operational efficiency underlines Sanjivani's commitment to sustained growth.

Sanjivani Paranteral Limited's Q1 FY26 earnings call highlighted a clear path forward with concrete guidance. The company anticipates strong revenue growth and stable margins for FY26, driven by new product launches, strategic market focus, and the ramp-up of new production facilities. Despite initial supply chain challenges, the outlook remains positive, emphasizing operational efficiency and portfolio diversification as key pillars for future success and value creation for shareholders.

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