Pharmaceuticals company SMS Pharmaceuticals announced Q1FY26 results Revenue from operations in Q1FY26 was Rs 196.05 crore, up 19% YoY. Gross margins grew by 12% YoY to reach Rs 65.35 crore EBITDA for Q1FY26 rose by 17% YoY to reach Rs 39.37 crore. EBITDA margin stable at 20%, improving 364 bps sequentially but down 30 bps YoY. PAT was Rs 20.50 crore, up 24% YoY. PAT margin was stable at 10% in Q1FY26. P. Vamsi Krishna, Executive Director, said: "We commenced FY26 on a strong footing, driven by our diversified product portfolio and notable client wins in key APIs. We made strong progress on our strategic roadmap, laying a solid foundation for the next five years of growth. Our joint venture with Chemo continues to be value accretive, with our anti-diabetic portfolio gaining market share in Europe. We are also deepening our strategic partnership with them through an expanded basket of anti-diabetic products. In Ibuprofen, we continue to see growing demand, supported by strong visibility in regulated markets and a competitive cost position driven by improved processes and plant engineering. We have successfully commissioned our backward integration project. This milestone marks a critical step in strengthening our supply chain and improving cost efficiencies. The project has delivered the desired outcomes in quality and performance, and we are now scaling up production. With full backward integration now in place for our key APIs, we expect to see a meaningful improvement in margins over the next few quarters. On the R&D; front, we have established a robust pipeline of high-potential molecules. In the next 18 months, we aim to accelerate regulatory momentum with multiple DMF, CEP, and dossier filings, targeting around 30 submissions over the next three years. We will be doubling our R&D; spend over the next 18 months. Our peptide-focused subsidiary has commenced construction of its dedicated R&D; facility, while the capex plan for a CDMO greenfield site in Andhra Pradesh has been finalised, with land acquisition underway. To support these initiatives, we are undertaking a Rs 250 crore capacity expansion programme, which will be funded through a mix of internal accruals and debt. Our disciplined capital allocation strategy will support sustained revenue growth alongside continued margin expansion. We remain on track to achieve our targeted 20% revenue growth for FY26 with an EBITDA margin above 20%, translating to an asset turnover ratio of ~1.0x, among the best in the industry. Our growth will continue to be driven by a diversified product mix, a strong pipeline of new products and our proven execution capabilities". Result PDF