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Phase-1 of pCAM to commission by April’27

Sudeep Pharma reported consolidated revenue of Rs1.8bn in Q4FY26, registering growth of 16% YoY and 6% QoQ, while FY26 revenue increased 28% YoY to Rs6.4bn. The Specialty Ingredients (SI) segment reported revenue growth of 105% YoY and 26% QoQ, driven by higher demand across infant nutrition, medical nutrition and dietary supplements. The SI business contributed around 44% to FY26 revenue, EBIT margins remained largely stable. The Pharmaceutical, Food & Nutrition (PFN) segment declined 20% YoY and 9% QoQ; The management expects EBITDA growth of ~15% in the PFN business over FY27 and FY28, supported by higher capacity utilization. The company’s pCAM project remains on track for Phase-1 commissioning by April’27, supported by rising global demand and China+1 sourcing opportunities.

Management has guided FY27 EBITDA margins of around 37%, while inventory levels to remain high to support customer demand and ensure raw material availability. The commissioning of the PFN expansion has been delayed due to customer validation timelines, which are expected to take around 6–12 months. The stock is currently trading at 35x FY28E EPS. We value the company at 33x FY28E EPS and maintain our ‘Reduce’ rating with a target price of Rs627.

Consolidated revenue increased 16%YoY/6%QoQ:

Consolidated revenue stood at Rs1.8bn (16% YoY/ 6% QoQ). FY26 Revenue stood at Rs6.4bn increased by 28% YoY driven by speciality ingredients segment revenue grew by 105% YoY and 26% QoQ. Gross margin was at 65.3% (vs 62.1% in Q4FY25 and 65% in Q3FY26). Absolute Gross profit was at 1.2bn, increased 6% QoQ and 21%YoY

EBITDA increased 6%YoY/4%QoQ:

EBITDA came in at Rs626mn (6% YoY/ 4% QoQ), and EBITDA margin came at 34.3% (vs 37.3% in Q4FY25 and 34.8% in Q3FY26). PAT increased to Rs485mn (10% YoY / +2% QoQ), while PAT margin remained stable at 27% (vs. 28% in Q4FY25 and 28% in Q3FY26).

Concall takeaways:

(1) In Pharma, Food & Nutrition segment revenue increased 10% YoY, driven by strong demand from India and Europe.

(2) The company was able to pass on the increase in phosphoric acid and sulfuric acid prices to customers.

(3) Capacity utilization stood at 65–70%.

(4) In Specialty Ingredients segment revenue contribution in FY26 44%.

(5) Strong global traction across infant nutrition, medical nutrition and dietary supplements.

(6) Capacity utilization stood at 35–40%.

(7) In Specialty Ingredients segment received 51 new approvals during FY26.

(8) In Battery materials segment Phase-1 commissioning targeted by April’27.

(9) Commissioned 5,000– 7,000mt battery-grade capacity at the existing facility, with 50% allocated for customer validation and the remaining 50% for commercial sales.

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