SMS Pharmaceuticals Limited has informed the Exchange about Investor Presentation
Date: 10th November, 2025
To, The Manager, Corporate Filings Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001
The Manager, Listing Compliance Department, National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.
Security Code: 532815
Symbol: SMSPHARMA
Dear Sir/Madam,
Sub: Investor Presentation
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we are enclosing here herewith a copy of investor presentation of the Company for the second quarter and half year ended 30th September, 2025.
This Investor Presentation may also be accessed on the website of the Company at www.smspharma.com
Kindly take the same on record and disseminate on your website.
Thanking you Yours Faithfully
For SMS Pharmaceuticals Limited
Thirumalesh Tumma Company Secretary
Investor Presentation
Q2 & H1 FY26 NOVEMBER 2025
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by SMS Pharmaceuticals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
www.smspharma.com
2
01
PERFORMANCE REVIEW
www.smspharma.com
Executive summary
Strong quarter led by volume growth and market share gains across key APIs
Gross margin expanded 30% YoY, driven by backward integration
EBITDA margin at 20% in Q2FY26; up by 54% YoY aided by backward integration and operating leverage
PAT stood at ₹25.32 crore, up by 80% YoY; Record highest in a quarter
₹280 crore capex programme progressing well, on track for completion by November 2026
On track to deliver 20% revenue growth in FY26 with EBITDA margins of 20%.
www.smspharma.com
4
Q4FY25 financial highlights
REVENUE (₹ CRORE)
EBITDA & EBITDA MARGIN
PAT & PAT MARGIN
EPS (₹)
248
242
197
173
196
EBITDA (₹ Cr)
Margin (%)
PAT (₹ Cr)
Margin (%)
20%
20%
20%
16%
31
35
16%
41
48
39
11%
10%
10%
8%
16
18
8%
20
25
21
2.84
2.43
2.31
1.95
1.69
Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26
Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26
Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26
Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26
₹242 crore
Revenue from operations
▲ 23%
₹48 crore
EBITDA
▲ 54%
₹25 crore
PAT
▲ 80%
₹2.84
EPS
▲ 70%
▲ YoY
www.smspharma.com
5
H1FY26 financial highlights
REVENUE (₹ CRORE)
EBITDA & EBITDA MARGIN
PAT & PAT MARGIN
EPS (₹)
438
361
PAT (₹ Cr)
Margin (%)
PAT (₹ Cr)
Margin (%)
5.13
10% 46
3.61
20% 88
65
18%
31
9%
H1FY25
H1FY26
H1FY25
H1FY26
H1FY25
H1FY26
H1FY25
H1FY26
₹438 crore
Revenue from operations
▲ 21%
₹88 crore
EBITDA
▲ 35%
₹46 crore
PAT
▲ 50%
₹5.13
EPS
▲ 42%
▲ YoY
www.smspharma.com
6
Key operating metrics Q2FY26
REVENUE BY THERAPEUTIC AREA (%)
REVENUE BY GEOGRAPHY-WISE (%)
8%
6%
6%
12%
16%
24%
27%
6%
4%
7%
17%
19%
23%
19%
9%
5%
9%
10%
15%
26%
22%
4%
1% 6%
9%
23%
20%
33%
8%
5%
13%
18%
26%
17%
12%
24%
18%
7%
39%
13%
13%
27%
29%
25%
7%
28%
29%
4%
26%
12%
22%
28%
5%
34%
15%
27%
24%
9%
26%
Q2FY25
Q3FY25
Q4FY25
Q1FY26
Q2FY26
Q2FY25
Q3FY25
Q4FY25
Q1FY26
Q2FY26
Anti-diabetic
Anti-migraine
Anti-epileptic
Anti Retro Viral (ARV)
Anti-inflammatory
Anti-ulcer
Others
Anti-erectile dysfunction
Europe
Asia (Ex. India)
North America
EOU/SEZ/DE
India
www.smspharma.com
7
Key operating metrics H1FY26
REVENUE BY THERAPEUTIC AREA (%)
REVENUE BY GEOGRAPHY-WISE (%)
6% 3%
8%
6%
12%
21%
16%
27%
6%
5% 5% 5%
11%
20%
23%
24%
12%
19%
26%
6%
37%
13%
25%
26%
7%
29%
H1FY25
H1FY26
H1FY25
H1FY26
Anti-diabetic
Anti-migraine
Anti-epileptic
Anti Retro Viral (ARV)
Anti-inflammatory
Anti-ulcer
Others
Anti-erectile dysfunction
Europe
Asia (Ex. India)
North America
EOU/SEZ/DE
India
www.smspharma.com
8
02
COMPANY OVERVIEW
www.smspharma.com
SMS Pharma at a glance
Established in
1989
36 years in API manufacturing and development
SMS’s business model Is underpinned by Its scale of operations and depth In capabilities
1
Diversified API player with a global presence
2
Globally compliant manufacturing facilities
3
4
Global and domestic leadership in key products
Vertically integrated across product portfolio
5
Strong presence in regulated markets
6
Strategic focus on R&D
www.smspharma.com
10
Key facts
#1
55+
88%
Global and Domestic leadership in
APIs across 14 diverse therapeutic
Revenue from regulatory markets
key products
segments.
3,120 KL
Reactor volume
1,500+
Employees
120+
DMFs filed till date
100+
Scientists in R&D
75+
Countries where we have a
presence
800+
Customers
www.smspharma.com
11
Ready for the next stage of growth…
1989-2011
2011-2017
2017-2022
2022-2025
• Became the world’s largest manufacturer of Ranitidine API
• Acquired a facility to
manufacture high value products in Hyderabad
• Successful expansion into
regulatory markets
• Successful listing on NSE
and BSE
• Started a green field project
• Demerger of SMS
in Vizag to build an API facility in more than 100 acres of land
• Investment in VKT Pharma, an associate company, for forward integration
• Rising market share of high
value in the regulated markets drive revenue and margin growth
lifesciences to unlock operational efficiencies and further increase focus on high-value molecules
• Established leadership
position in anti migraine, anti diabetic, anti-ulcer and ARVs etc.
• Launched Asia's biggest
dedicated and automated production block for ibuprofen
• Backward integration projects to improve margins across product portfolio
• Successful audits and
inspections by EQDM and USFDA at Vizag plant and VKT pharma respectively
• Meaningful contribution of VKT pharma to the bottom line for the first time
Future Focused strategy in place to deliver revenue growth with margin expansion
www.smspharma.com
Diversified across therapeutic areas and products to mitigate risk
Therapeutic areas
Anti-inflammatory
Anti Retro Viral (ARV)
Anti-diabetic
Anti-migraine
Anti-ulcer
Category
High-volume
High-volume
High-value
High-value
High-volume
Anti-erectile dysfunction
High-value
Anti-epileptic
Others
www.smspharma.com
High-value
High-value
H1FY26 revenue share
20%
23%
24%
11%
5%
5%
5%
6%
13
State-of-the-art, accredited manufacturing facilities
HYDERABAD
VIZAG
Manufacturing capacity: 120 KL for niche small-volume molecules
Manufacturing capacity: 3,000 KL for niche large-volume molecules
Regulatory approvals: USFDA, EUGMP, KFDA, CDSCO, PMDA Six times approved by the USFDA
Regulatory approvals: USFDA, KFDA, CDSCO, PMDA Three times approved by the USFDA
Total area: 48,158 m2
Total area: 3,45,007 m2
www.smspharma.com
14
Sustained gross margin expansion across multiple cycles
Gross margin expansion in a competitive generics landscape
GROS S MAR GIN ( E X. MANUFACTURIN G E XP E NS E S ) ( % )
Enabled by
47%
per MT
• High-value product mix supports better realisation
36%
38%
37%
40%
40%
40%
36%
44%
43%
• Scalable manufacturing enables operating leverage
and market leadership
• Strong foothold in regulatory markets ensures
pricing power and durability
• Strategic R&D focus drives process optimisation and
margin protection
F Y 1 7
F Y 1 8
F Y 1 9
F Y 2 0
F Y 2 1
F Y 2 2
F Y 2 3
F Y 2 4
F Y 2 5 H 1 F Y 2 6
www.smspharma.com
15
High-value portfolio ensures high quality of cash flows
Stable and majority share of high-value product portfolio
OCF conversion on par with leading API companies (10 Year avg)
SHARE OF HIGH-VALUE PRODUCTS (%)
OCF CONVERSION RATIO*
44%
42%
44%
40%
47%
30%
66%
68%
62%
82%
72%
FY21
FY22
FY23
FY24
FY25
H1FY26
Peer 4
Peer 3
Peer 2
SMS Pharma
Peer 1
* OCF conversion ratio is defined as cash flow from operating activities divided by EBITDA
www.smspharma.com
16
Manufacturing facilities enables scale and leadership position
• Rapid scale-up of APIs enabled by decades of in-house technical expertise
• Strong first-to-market capabilities in key therapeutic areas
• Operating leverage drives cost efficiency, enabling competitive pricing and faster market share
ANTI-DIABETIC SALES (MT)
ANTI-INFLAMMATORY SALES (MT)
224% CAGR
182% CAGR
FY22
FY23
FY24
FY25
FY21
FY22
FY23
FY24
FY25
FY22
FY23
FY24
FY25
FY21
FY22
FY23
FY24
FY25
www.smspharma.com
17
Strategic R&D focus enables margin protection
Stable gross margins despite price erosion
New product development
Added 20 new products since FY22
Large technical team
120+ DMFs filed till date
Process optimisation
35+ process patents
Focus on commercialisation
100+ scientists
Strong partnerships
JV with Spanish pharma giant Chemo Iberica S.A.
www.smspharma.com
18
Established, well balanced and diversified customer portfolio
REVENUE BY LOCATION, Q2FY26
REVENUE BY CUSTOMER TYPE, Q2FY26
REVENUE BY CUSTOMER SIZE, Q2FY26
15%
26%
27%
9%
59%
41%
41%
24%
24%
35%
Europe
Asia (Ex. India)
North America
Large pharma
Mid-to-small pharma
Largest
Top 2-10 customers
Remaining
EOU/SEZ/DE Sales
India
www.smspharma.com
19
Long standing relationship with marquee customer base
www.smspharma.com
20
Experienced BoD to deliver on strategy
Shri. Ramesh Babu Potluri Chairman & Managing Director
Shri. Vamsi Krishna Potluri Executive Director
Shri. Shravan Kudravallii Independent Director
Shri. Sarvepalli Srinivas Director
Shri. Dr. Suresh Kumar Gangavarapu Independent Director
Shri. Sunkara Venkata Satya Shiva Prasad Non-Executive Non Independent
Director
Smt. Shanti Sree Bolleni Independent Director
Shri. Trilok Potluri Non-Executive Non Independent
Director
www.smspharma.com
21
03
WAY FORWARD
www.smspharma.com
Ramp-up of high-volume product portfolio
Targeting 1.75 average net asset turnover levels over next 2-3 years
Asset turnover (Times)
1.75
Target
1.55
Now*
* Annualised figure based on H1FY26 numbers
Key drivers
• Anti-inflammatory: Aspiring to become the #1 player in the world
• Strategic partnerships: Aim to generate additional revenues through our
arrangement with Chemo
• Other APIs: Market share wins in key APIs
www.smspharma.com
23
Backward integration to improve quality of earnings
Low price risk
Protection against market fluctuations
Culture of learning by doing
Strengthens core R&D capabilities
Cost-competitive structure
Increasing margins & reliability
Several products where we have backward integrated
Ability to backward integrate for molecules helps protect gross margins
Low
Dependency on China for raw material
www.smspharma.com
24
Strengthening product portfolio
30
DMF, CEP and dossier filings targeted over next 30 months
2x
R&D investment to double over next 15 months
PRODUCT PIPELINE Lab Scale Development & Commercial Validation Completed • Anti-inflammatory
• Anti-diabetic
• Anti-depressant
Lab scale development and validation completed • Anti-hypertensive
• Antipsychotic
• Ulcerative colitis
www.smspharma.com
25
Launch of major Capex projects to support strategy
Capex project mix
11%
89%
Brownfield
Greenfield
₹280 crore
Capex spend to be completed in Nov 2026
Capex oriented towards:
• Capacity expansion for
existing APIs
• Building capacities for new
API pipeline
• Land acquisition in process
for a greenfield project
Strategic focus:
• Completed one Capex cycle
in last 3-4 years; Now focused on asset utilisation to deliver best-in-class returns
• Current round of Capex is
targeted to deliver returns in the high-teens range
www.smspharma.com
26
04
HISTORICAL FINANCIAL PERFORMANCE
www.smspharma.com
Consolidated P&L statement
Particulars (₹ Cr)
Q2FY26
Q1FY26
YoY Growth (%)
Q2FY25
QoQ Growth (%)
H1FY26
H1FY25
YoY Growth (%)
Revenue from Operations
242.43
196.75
COGS
Gross Profit
Gross Margin (%)
EBITDA
EBITDA Margin (%)
Other Income
Finance Costs
Depreciation
PBT
Taxes
165.55
137.68
76.88
59.07
32%
30%
48.38
31.47
20%
1.43
5.74
10.02
34.05
8.91
16%
1.30
4.61
8.62
19.54
5.68
Reported PAT
25.14
13.86
Add: Share of Associate Profit/Loss
0.18
0.24
PAT after MI & Assoc
25.32
14.10
PAT Margin (%)
Earnings Per Share (EPS)
www.smspharma.com
10%
2.84
7%
1.67
23%
20%
30%
169bps
54%
396bps
10%
25%
16%
74%
57%
81%
-100%
80%
328bps
70%
196.05
130.70
65.35
33%
39.37
20%
0.59
5.84
9.75
24.37
5.65
18.72
1.78
20.50
10%
2.31
24%
27%
18%
438.48
361.20
296.26
243.85
142.22
117.35
-162bps
32%
32%
23%
-13bps
142%
-2%
3%
40%
58%
34%
-90%
24%
-1bps
23%
87.73
64.97
20%
2.03
11.58
19.77
58.41
14.57
43.84
1.96
18%
2.67
9.27
17.00
41.37
11.14
30.23
0.34
45.80
30.57
10%
5.13
8%
3.61
21%
21%
21%
-5bps
35%
202bps
-24%
25%
16%
41%
31%
45%
476%
50%
198bps
42%
28
Consolidated balance sheet
Particulars (₹ Cr)
H1FY26
FY25
FY24
FY23
Particulars (₹ Cr)
H1FY26
FY25
FY24
FY23
ASSETS
Non-Current Assets
Property, Plant and Equipment
Capital Work-in-Progress
Right-of-use Assets
Intangible Assets
Financial Assets:
Investments
Bank Balances
Other Financial Assets
Other Non-Current Assets
Sub-total
Current Assets
Inventories
Financial Assets
Trade Receivables
Cash and Cash Equivalents
Bank Balances
Other Financial Assets
Other Current Assets
Current Tax Asset (Net)
Sub-total
Total
www.smspharma.com
513.93
53.59
-
2.61
14.30
3.57
7.19
20.12
615.31
530.85
34.67
-
2.13
11.68
2.95
6.95
8.98
598.21
434.19
30.27
0.41
2.66
10.94
2.69
5.17
13.87
500.20
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Other Equity
Sub-total
Non-Current liabilities
Financial Liabilities
Borrowings
Lease Liabilities
Provisions
Deferred Tax Liabilities (net)
Sub-total
409.50
33.19
1.05
1.47
10.52
2.54
5.09
5.61
468.96
Current liabilities
317.47
284.73
233.70
223.50
221.42
99.49
0.19
2.38
20.20
-
203.23
41.40
0.19
9.89
14.64
0.39
236.23
36.04
0.16
3.28
22.75
1.73
148.35
7.31
0.16
6.60
18.97
5.76
Financial Liabilities
Borrowings
lease Liabilities
Trade Payables:
Dues to Micro & Small
Enterprises
Dues to Creditors Other
than MSMEs
Other Financial Liabilities
Provisions
Other Current Liabilities
661.15
554.47
533.89
410.65
Sub-total
1,276.46
1,152.68
1,034.09
879.61
Total
9.37
719.98
729.35
8.87
630.77
639.64
8.47
527.86
536.33
8.47
452.06
460.53
121.30
139.36
122.09
121.13
1.22
49.41
171.93
203.00
0.16
139.58
26.06
1.20
5.18
375.18
1,276.46
-
1.21
48.10
-
1.16
42.80
188.67
166.05
171.39
-
0.10
113.82
33.37
1.11
4.58
158.09
0.59
0.96
150.36
15.85
1.03
4.83
324.37
1,152.68
331.72
1,034.09
0.61
1.40
41.02
164.17
131.38
0.94
0.69
106.74
11.22
1.04
2.90
254.91
879.61
29
Consolidated cash flow statement
Particulars (₹ Cr)
Cash flow from operating activities
Profit before tax
Cash generated from operations
Cash flow from operating activities
Cash flow from investing activities
Capex
Cash flow from operating activities
Cash flow from financing activities
Net Proceeds from Share Warrants
Proceeds from Long Term Borrowings
Repayment of Long Term Borrowings
Net Proceeds from Short Term Borrowings
Dividend paid
Cash flow from financing activities
Net increase/decrease
Opening balance
Closing balance
www.smspharma.com
H1FY26
58.41
52.33
42.32
-29.67
-30.5
47.62
6.39
21.96
29.01
-3.55
46.27
59.09
41.40
99.49
FY25
92.34
101.54
81.71
-123.38
-123.43
38.09
63.72
-44.10
10.80
-3.39
47.08
5.36
36.04
41.40
FY24
66.11
65.52
50.12
-52.16
-52.07
28.48
45.09
-37.76
20.21
-2.54
30.68
28.73
7.31
36.04
FY23
5.35
27.05
22.45
-29.92
-29.76
-
9.41
-43.06
25.88
-2.54
-31.97
-39.28
46.58
7.31
30
THANK YOU
For further information contact:
Mr. Thirumalesh Tumma
SMS Pharmaceuticals Limited
E: complianceofficer@smspharma.com
Mr. Aditya Dutta
Eqsponent partners
E: smspharma.ir@eqsponent.com
www.smspharma.com