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Growth Visibility Intact; Both Segments Set for Strong Expansion We believe Concord is well-positioned to sustain its strong growth trajectory, supported by robust order book visibility across both API and Formulations segments. The newly commissioned injectables facility is progressing as planned, with peak revenues anticipated from FY27E onwards. Growth in the CDMO space remains solid, with multiple projects currently in advanced stages. While operational leverage from the Limbasi facility is expected to support margins, this will likely be offset by initial scale-up costs related to the injectables unit. As a result, we expect EBITDA to remain muted in FY26E, with stronger growth anticipated from FY27E.

We revise our earnings estimates upward by 8.2%/7.7% for FY26E/FY27E, respectively. Maintaining our valuation at 40x FY27E EPS, we revise our target price to INR 2,120 (earlier: INR 2,027) and retain our BUY rating on the stock.

Big Beat Across Metrics, Margins Expand Significantly

* Revenue grew 34.8% YoY / 76.0% QoQ to INR 4.3 Bn (vs. consensus estimate: INR 3.7 Bn).

* EBITDA declined 41.8% YoY / 94.4% QoQ to INR 1.9 Bn (vs. consensus: INR 1.5 Bn); margins expanded 220 bps YoY / 419 bps QoQ to 44.3% (vs. consensus: 40.8%).

* Adj. PAT increased 47.8% YoY / 84.9% QoQ to INR 1.4 Bn (vs. consensus estimate: INR 1.1 Bn).

API to Sustain Double-Digit Growth with New Customers, Broader Portfolio: APIs, contributing ~78% of FY25 revenue, continued to perform well with 118 new customer additions and portfolio expansion. The company is well-positioned to maintain its double-digit growth trajectory, supported by strategic diversification beyond immunosuppressants. It plans to launch 2–3 APIs annually in anti-infective and anti-fungal segments. While quarterly volatility is expected, full-year revenue visibility remains strong. Additionally, the API CDMO segment is scaling up, with one project already commercialized and several others in advanced development stages.

Formulations to Grow at 35% CAGR; Set to Likely 22% Revenue Share: The formulations segment reported strong 38% YoY growth in FY25, supported by deeper penetration in the domestic market and a robust pipeline of upcoming launches. Management remains confident in sustaining this momentum, guiding for a 35% CAGR in the segment. The newly commissioned injectables facility is expected to contribute meaningfully starting FY26, with peak revenues likely by FY27–28. Notably, the company secured US approval for key products like Teriflunomide tablets, including a Para IV opportunity. The pipeline remains healthy, with both oral solids and injectable filings across US and RoW markets. A strong order book visibility from FY26–28, especially from injectables and new launches, positions formulations to grow faster than the API segment and potentially surpass it in revenue contribution.

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