SPSudeep Pharma544619Earnings call transcript

Earnings call transcript: record quarterly revenue and EBITDA, segment-wise outlook outlined

Transcript of the 29 Oct 2026 earnings call for Q2 and H1 FY27.

By ScoutQuest · Tue 3 Nov 2026, 3:06 PM IST · 3 min read

Q2 Revenue

INR196 crores (+21% y-o-y, +24% q-o-q)

Q2 EBITDA

INR73 crores (+32%)

Q2 PAT

INR51 crores (+11%)

Sudeep Pharma has put on record the transcript of its earnings conference call for the quarter and half year ended 30 September 2026, held on 29 October 2026.

Headline numbers for the quarter

• Revenue from operations was INR196 crores, up 21% year-on-year and 24% sequentially.
• EBITDA was INR73 crores, up 32% year-on-year.
• Gross margin improved to 64.7% from 62.5% a year ago.
• EBITDA margin rose to 37.2%, an improvement of over 300 basis points.
• PAT was INR51 crores, up 11%, reflecting a higher effective blended tax rate together with lower other income.
• Management described this as the highest ever quarterly revenue and EBITDA.

Cost pressure from freight

• Selling and distribution expenditure was approximately INR8 crores above the normal quarterly average, largely due to elevated sea freight costs.
• Management said these costs were absorbed rather than passed on to customers, to honour commitments and ensure on-time deliveries.

Specialty Ingredients

• Revenue was INR54 crores, up 9% sequentially but 25% lower year-on-year.
• Two factors were cited: the Government of India's Fortified Rice programme, a significant contributor to the segment, has been temporarily paused, and management said there is currently no visibility on whether it will restart during this financial year; and NSS had a softer quarter with lower revenue and earnings.
• Approvals were received in Q2 from large customers across infant nutrition, dietary supplements and human nutrition, with commercial revenues expected to begin in Q3.
• Management expects the segment to return to positive year-on-year growth in Q3 and Q4, based on customer contracts and new business alone, without assuming a restart of the Fortified Rice programme.
• NSS has secured five customer approvals and has approximately 12 customer projects at different stages of evaluation and development; management expressed confidence in a stronger FY28 for NSS.

Pharma Food Nutrition

• Revenue grew 57% year-on-year to INR142 crores, contributing approximately 72% of consolidated revenue.
• Segment EBITDA margin increased to approximately 41% from 33% a year ago, while segment EBITDA nearly doubled.
• Growth was described as broad-based across India, Africa, APAC and Europe.
• The greenfield facility at Nandesari received FDA approval during the quarter, with annual capacity of 51,000 tons across existing products and newer categories including glycinates, gluconates, citrates and phosphates.
• Customer qualifications are underway, and commercial supplies are expected to begin in H2 FY27, with utilisation building as qualifications convert into orders.
• On magnesium bisglycinate, Q1 sales had already exceeded sales for the whole of FY26 and the momentum continued in Q2; average realisation is more than 3x the average of the PFN portfolio.
• A dedicated brand, MaxZobis, is planned; management said the product can become one of the top 3 revenue contributors within PFN over the next 2 to 3 years.

Battery Materials (Sudeep Advanced Materials)

• The Dahej project continues to progress, and management remains confident of commencing commercial operations in April 2027.
• Phase 1 will have an annual capacity of 25,000 tons of battery-grade iron phosphate, a key precursor in the LFP battery value chain.
• Management sees strong demand to support the first 100,000 ton annual capacity and expects a more concrete update on firm binding offtake contracts in Q4.
• Customer discussions for the next phase are progressing faster than expected, increasing confidence in a planned expansion towards 200,000 tons of annual capacity.
• The pace of investment will remain aligned with firm customer commitments and progress in the initial phase; relationships are being developed across the U.S., Korea, Europe and India.

What to take away

• The quarter's growth came mainly from Pharma Food Nutrition, which now contributes about 72% of consolidated revenue.
• Specialty Ingredients is the weak spot in the quarter, with the paused Fortified Rice programme called out as a factor and no visibility yet on a restart this financial year.
• The forward-looking statements are management expectations: positive year-on-year growth in Specialty Ingredients in Q3 and Q4, commercial supplies from Nandesari in H2 FY27, Dahej operations from April 2027, and a concrete offtake update in Q4.

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