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Strong beat on estimates

* 3QFY26 sales grew 6.6% YoY to INR23.9b (our est: INR24.1b).

* Formulations sales grew 14% YoY to INR15.2b (64% of sales).

* Exports formulation sales grew 17% YoY to INR5.4b (23% of total sales).

* Domestic formulation sales grew 12% YoY to INR9.8b (41% of total sales).

* Exports (generics formulation) grew 21% YoY to INR2.7b (51% of export sales). Exports (branded formulation) grew 28% YoY to INR2.0b (38% of export sales). Exports (institutional sales) declined 21% YoY to INR583m (11% of export sales).

* API sales remained stable at INR3.2b (13% of sales). Export API sales grew 6% YoY to INR2.4b (74% of API sales). Domestic API sales declined 14% YoY to INR815m (26% of API sales).

* Revenue from subsidiaries declined 6% YoY to INR5.4b (23% of sales).

* Gross margin (GM) expanded 230bp YoY to 72.5%.

* EBITDA margin also expanded 170bp YoY to 22.3% (our est: 20.1%), driven by the expansion of gross margin.

* EBITDA grew 15% YoY to INR5.3b (our est: INR4.8b). ? IPCA had an exceptional gain of INR177m related to the sale of land and buildings.

* Adj. for the same, PAT grew 26% YoY to INR3.1b (our estimate: INR2.8b).

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