Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Bharat Parenterals Ltd (BSE: 541096) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Bahim Desai — Director Strategy and Investor Relations
Analysts:
Dietal Shah — Analyst
Harshad Khada — Analyst
Saloni Arya — Analyst
Avnish — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Bharat parental Q4 and FY26 earnings conference call hosted by Philip Capital Private Client Group. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. I now hand the conference call over to Mr. Dietal Shah from Philip Capital BCG.
Thank you. And over to you sir.
Dietal Shah — Analyst
Thank you, Steve. Good afternoon everyone. On behalf of Philip Capital Private Client Group, I welcome you all to H2Q4 and FY26 earning conference call of Bharat Parent Run Limited today. From the management side we have Mr. By him Desai who is the director of the company and as well as handles the strategy and IR part. I now hand over the conference to Mr. Bahim sir for his opening remarks and then we will open the floor for question and answer. Over to you sir.
Bahim Desai — Director Strategy and Investor Relations
Thank you. Thank you. Good afternoon everyone and and a very warm welcome to Bharat Parentage Limited Q4 full year FY26 earnings call. I am Bahim Desai, Director Strategy and Investor Relations. I hope all of you have had a chance to look at our results, the investor presentation and the management discussion and analysis, all of which are available on the Stock Exchange. Before I take you through the year, I’d like to start with a quick disclaimer. Some of what I’ll be sharing today involves forward looking statements.
These are based on our current expectations and do not and do involve risks and uncertainties. Actual results may differ. How would we like you to look at FY26? FY26 was a year of transition for our group. So before we get into the numbers, I want to set the context before I think the headline. Numbers don’t quite tell the full story. This year. Over the last three years we have been investing in regulatory clearances, in expanding our subsidiary platforms, in field force and in capacity. Some of those investments came due in FY26.
Some are still to come. The way we’d like you to look at this year is as the bridger. The year where we cleared the regulatory hurdles, scaled the new businesses and got the group ready for the commercial inflection that we expect in FY27. Let me give you the consolidated picture first and then I will go business by business. So our Consolidated revenue for FY26 stood at 340.4 crores compared to 340 crores last year. So on the face of it, the top line is broadly flat. But the mix within that 345crores looks very different from last year.
Our standalone exports business was softer. Inoxil, our complex generic subsidiary grew by 174.1%. And Veranium Healthcare, our branded domestic business grew by 13.7% and most importantly turned profitable for the first time. So the de risking has happened in the mix. Even though the headline looks flat when you really see the impact. Where you really see the impact is in the EBITDA line. Consolidated EBITDA for FY26 was 15.8 crores against 2.7 crores last year. That’s a 485% expansion nearly six times.
And our consolidated PAT narrowed to 27.3 crores from 43.7 crores, an improvement of about 16 crores at the bottom. That improvement is largely driven by Inoxil. Inoxil narrowed its EBITDA loss by 23.5 crores this year. That single line is the most important thing that happened in our group in FY26. Let’s now go on into the standalone performances for the BPL. Standalone performance. Let me start by saying that BPL, which is the parent company, the revenue for FY26 stood at 234 crores against 304 crores last year.
A decline of about 23%. I want to be straightforward with you about why this happened. There were three reasons. First, we had a number of export tenders that got deferred into the next year. The order are still ours. The shipment slipped. Second, we made a deliberate choice to step away from some low margin volume businesses that was not adding any value. And third, and this is the one I really want you to pay attention to, we took down some of our production lines for upgradation work this year.
We upgraded our general injectable wire line, the water system in the beta lactin block. And we made structural changes in preparation for the EU GMP inspection that we are expecting in this FY27. These were one time activities and they cost us production days. Despite the lower revenue, we delivered EBITDA of 21 crores at a 9% margin and a PAT of 16 crores at a 6.8% margin. We also reduced our finance cost by 28% and we kept other expenses tightly under control and they came down 40% year on year.
On the operational side FY26 was actually a strong year. We submitted 214 dossiers. We got 40 new product registrations across Africa, Latam and Southeast Asia and we now have over 350 live filings more than 40 countries. We also opened a representative office in Vietnam which we expect will help us in Southeast Asia. I think most important number on this business going into FY27 is capacity utilization. We are at 48% on the 21% on beta lactam and 24% on nucleus porins. There is meaningful headroom here and we don’t need Fresh Capex to grow the standalone business by 10 to 15% next year.
The order book today stands at 171 crores which gives us reasonable visibility for FY27. Let’s now go on to Inoxel Life Sciences. I’ll spend a little more time on Inoxil because frankly this is where the story is. Inoxil is our complex generics and specialty injectable subsidiary targeting the US and Europe. FY26 was the inflection year for Inoxil. Revenue grew to 72.4 crores from 26.4 crores last year, a growth of 174%. This revenue is largely from licensing and milestone payments. We signed 23 deals during the year which includes 7 out licensing deals and 16 CMO CDO partnerships.
So our cumulative deal since inception now stands at 42. The bigger news in our view is on the regulatory side. We received our US FDA Establishment Inspection Report after our inspection in April and May of 2025 and our facility was cleared by FAMHP which is the Belgian regulator for EU gmp. And importantly with zero critical and zero major observations. What this means in practical terms is that the facility is now cleared for commercial supply to both the US and select European markets. These are the two clearances we have been working towards for the last few years and getting them done in FY26 is what positions us for commercial revenues from FY27 onwards.
On the operational side we ended FY26 with 19 active partners, eight in the US, six in Europe and five in India. All of our partners are working actively for US filings and US based products. Our pipeline today has 42 assets across various stages of development. EBITDA loss for the year narrowed sharply to 6.9 crores from 30.4 crores last year, so an improvement of about 23.5 crores. Pat lost 2% to 43.4 crores from 67.9 crores last year. And the gap there is essentially depreciation on the new capacity we’ve validated.
And I want to flag one thing that I think is worth highlighting in Q4. FY26, Inoxel turned EBITDA positive for the first time. We did 1.4 crores of EBITDA in the quarter against losses in every prior quarter. It’s just one quarter, so I don’t want to overclaim it, but for those of you who have followed Inoxil for some years, this is a meaningful turn. Moving on to Veranium Healthcare. Veranium Healthcare, which is our domestic branded business. As some of you know, I personally co founded this business in 2016.
So I have a close view on what’s happening here. FY26 was the year Veranium turned profitable. Revenue grew from 51.4 crores last year to 58.4 crores this year. That’s a growth of 13.7% year on year. We sell 45 active brands today and our top five brands namely Sugmadex, Termiva, Adisop, Atrablock and JoseFix together contributed 28.7 crores or about half of our revenue. Sugmadex deserves a special mention. This is India’s first Sugammadex 100ml product. It is the only Surama Dex in the country with a three year shelf life.
In FY26 it did about over 10 crores of revenue making it our largest single brand at about 17.5% of the company’s overall revenue. EBITDA for the year was 2.5 crores against a loss of 3 crores last year. And Pat was a profit of 2.3 crores against a loss of 2.1 crores last year. So Veranium Healthcare swung from being loss making to being profitable in a single year. We’ve also continued to invest in the team. We took our medical sales force from 190 to 211. That’s 21 net additions during the year.
And we added 15 new corporate hospital tie ups. What I want you to take away from this is that we delivered the turn to profitability while investing in the business. That’s the operating leverage. Starting to score. Two metrics I want you to track because they are the real signals on this business. One, productivity per medical representative per month, which is RPCPM, grew 31% year on year to over 3.2. Sorry, 3.85 lakhs 2 Our corporate hospital coverage is now over 7,500 institutions across 26 states, including Apollo Narayan, Rudalay, Manipal, Max, Yashoda Kins, Medanta, Ames, Delhi and Sakdarjan to name a few.
When PCPM is rising and corporate coverage is deepening, that’s when you get the operating leverage to come through. We expect FY27 to start showing that. Moving on, Verinium Biolife Sciences will briefly update on Verinium Bio Life Sciences, which is our complex injectable platform targeting emerging regulated markets like Brazil, Mexico, Colombia, South Africa, Australia and Europe. Mainly the regulated markets outside of the us. This facility is still under construction. Our approved budget is around 160 crore and our CWIP at the year end was around 33 crores.
So we’re about 20% of the way through in terms of cost. Civil works are at 50%, equipment procurement is around about 40%. The key milestones for this business are commissioning of the facility in September of 2027, line validation of manufacturing lines by March 20, 2028. Our first regulatory filing under EUGEMP expected to be Q1 of FY29 and subsequently our first commercial supply in Q4 of FY29. So this is a longer dated story. VBPL or Veranium Bio is pre revenue and we will continue to absorb modest losses through the construction phase.
Now let’s go through the Q4 of FY26. Consolidated revenue in the quarter was 99.6 crores, up 52.8% over Q3. Inoxil had its standout quarter at 37.5 crores. The standalone business saw a sequential recovery to 56.5 crores and Veranium Healthcare was at 11.6 crores which was lower than Q3. And that’s purely due to the nature of domestic business being the lowest in Q4. Not the demand issue, rather a known industry practice. Now let’s go ahead for the outlook for FY27. Now to the outlook for FY27, which is what most of you really want to hear about.
We are guiding to specific ranges by business. For the standalone business we expect revenue growth of 10 to 15% with EBITDA margins in the same 10 to 15% range. Order book of 171 crores gives us visibility. Growth concentrated in Southeast Asia, Africa and the MENA region are our drivers. PICS and EUGEMP inspection at our standalone facilities are scheduled during FY27. For Inoxil we expect revenue growth of 35 to 45% with EBITDA margins of 20 to 25%. The big catalysts are first commercial CMO supply starting Q2 of FY27 and overall 2 to 3 CMO products commercializing during the year.
Additionally, I would like to point out that there would be 10 new filings from Inoxil this year. 20 new partner deals which are targeted out of which 10 are at advanced stages of discussions and due diligence. Our first MHRA and Health Canada filings during the year and overall out licensing income is expected between 70 to 90 crores. For verinium Healthcare we expect revenue growth of about 20 to 25% with EBITDA margins of 8 to 13%. We expect the field force to expand upwards of 250 people. Seven new product launches including Remy Shot which will be India’s first made in fentanyl and the launch of our second division BOA which will operate in gynecology.
So Verinium goes from being a single division business in FY26 to a two division business in FY20. CPL or Veranium Bio Life Sciences remains pre revenue through FY27. Key milestones are commissioning of manufacturing lines by September of 2027 and validation of the same by March 2028. With that I’ll hand it back to the operator. We are happy to take your questions now.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press Star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Harshad Khada Drobo Capital. Please go ahead.
Harshad Khada
Yes, thank you for the opportunity. Am I audible?
Bahim Desai
Yes. Oh
Operator
Yes you are.
Harshad Khada
Yes sir. So my first question is regarding the standalone business. As I remember in the last quarter we had an outlook that the standalone business will, you know, grow by 12 to 14% on the top line basis. And right now the standalone business is around 230 crores. You know you explained the reason that some export orders were delayed. So right now you mentioned that the standalone business will, you know again grow by 10 to 15%. So this is on the base of 230crores you are talking about, right?
Bahim Desai
Correct, it is. On this year’s results
Harshad Khada
Are we saying that we will do a 250 crores and not 300 crores know base business?
Bahim Desai
So just some
Harshad Khada
Clarity on that, right?
Bahim Desai
The base business, we are expecting partial recovery this year. We still expect a little bit of disruption due to two major audit events which would be at the standalone facilities which is like I said, PICS and ugmp. So there would be certain disruptions due to, owing to those, I would say in the preparatory phase followed by the actual inspections and post that would be there before the, I would say certifications arrive. So there would be some sort of disruption coming from these two inspections for this year.
Secondly, there are, there would be, like I said in terms of revenue, there would be partial recovery in this year and we expect full recovery in the next year to come. Going Back to our FY25 numbers. 25 numbers in FY28.
Harshad Khada
Correct. Understood. And sir, just you correct me if I’m wrong. The peak revenue from the base business is around 400 to 500 crores, right.
Bahim Desai
It is expected from the standalone business to deliver 400 to 500 crores of top line. But that is obviously this will be sequential and there, there is, I would say a three year, three to four year time before which we can expect those things to come always. The peak revenue has been discussed from a 2030 standpoint. So I believe we are still four years away from that.
Harshad Khada
Understood. And my second question is regarding Uranium bio. So in Q3 call you said that, you know, you expect the commercialization to happen anywhere in 27 and I guess right now we are saying it will happen in Q4 of FY29. So is my understanding correct or how should we look at it?
Bahim Desai
So we are talking specifically not from, I would say ROW exports or domestic revenues. We are talking from commercial revenues coming from the complex injectable products that we are taking partly from Inoxil and partly from BPL at Verinium, the filing of which would commence somewhere around Q1 of FY28 and the clearance of that, sorry, Q1 of FY29 and the clearance of those coming in Q4 of FY29. So yes, there has been certain revisions in terms of timeline. I would also like to point out that the current geopolitical disturbances has had an impact on the.
I wouldn’t say too much of an impact, but we are three months at least one quarter running behind on schedule as to what we had expected earlier. So that is the trend that is currently ongoing and which is why we have given the correct picture today as to what we feel is the right time for both the commercial operations at Vernium as well as product approvals specifically from these emerging regulated Markets are concerned.
Harshad Khada
Okay, understood. Thank you sir. We’ll get back in the queue.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and 1. The next question comes from the line of Saloni Arya with Molecule Venture. Please go ahead.
Saloni Arya
Good afternoon sir. I just had a couple of questions regarding the guidances that we are given this quarter. So if you compare it to the past 2, 3/4, we have downgraded almost all the guidelines and especially in marine and healthcare. So why are we being so cautious in all pigments?
Bahim Desai
I believe that due to certain, I would say earlier the guidances that were given and we were not able to deliver on those guidances for various reasons, underlying reasons that have already been discussed this time around, the guidances have been on the softer side and we. And it is something that we feel is very. That we are very confident of achieving these guidances. Apart from, I don’t understand from Veranium Healthcare, you said that you know, the guidance has changed. So I always believe that for the next year the guidance was always somewhere around 75cr of top line revenue.
Between 75 and 80cr top line.
Saloni Arya
In terms of margin, sir, we used to be quite bullish in terms of what viridian value scale could do. Correct. And the guidances that we have given right now are quite low. And with regards to the standalone business as well, we said that the standalone business orders are being delayed or not and not cancelled. But it is kind of getting reflected in the upcoming 12 years where we are still assuming 10 to 15% growth. So historically the
Bahim Desai
Standalone business was always at a CAGR of 10 to 15% owing to the nature of business that it operates in. Firstly. Secondly, the consistent shift in policy of how, how we operate that business, how we historically have operated that business and how structurally we are making those changes right now and how in the next three to five, four years we wish that standalone business, the product mix and the business mix, how it changes. So that is one of the impacts that we are seeing now on the standalone business.
Apart from that, the difference of tenders that were supposed to come in for which we had very strong indications, including that from them from directly the tender tendering authorities, they were delayed from their end because of which there were several delays. And apart from that, like I said, almost two months of our production time was shot at BPL last year owing to facility upgradements across all three blocks. All three production blocks. So with that being said on the margin front of Verinium Healthcare, I would like to Point out that we are currently under rapid expansion mode.
Last year it was only about 20 odd additions in terms of field force. This year that is going to be a start of a new division altogether that includes people, includes training and includes the new products and brands that would be developed. So there would be a significant investment that is going to go from from the company towards expansion of the business with minimum expectations in terms of meaningful top line numbers. So that is why looking at all of those reasons the guidance has been given as for what we actually expect to happen towards the end of the year.
Saloni Arya
All right, so just one last question on the Inoxel side. So when we are assuming FY27 inoxicial growth to be around more than 35% and 20 to 25%
Harshad Khada
Are we considering
Saloni Arya
These margins primarily from the CDMO? On the out licensing part?
Bahim Desai
This would be for, for FY27 on the margin front at Anoxil primarily it would be due to milestone payments because though the commercial supplies will start, it is it would still be for maybe you know, two or at max three products and not more so the commercial revenues that we as meaningful in comparison to the licensing and milestone payments that we expect for this year. So primarily I would say that due to larger top line revenues and our cost base being fixed, the margin expansion would be there because of those reasons.
But this year being the year where we would be filing multiple of our six of our own assets, we expect FY28 to have a very strong rebound when it comes to manufacturing, commercial revs and subsequently licensing milestones for newer projects and licensing milestones from projects which would be completing the overall development cycle at an oxo.
Saloni Arya
All right sir, any idea on the CBMO part? Sir, by FY28 like what proportion are we basically thinking that Inoxil. Could you start getting numbers from cdn?
Bahim Desai
See all of this is cdn. When you, you, you when you say licensing and milestones it is cdmo. It is not only CMO or so I cannot just completely say that the CDMO revenues aren’t there. To answer your question, from our own pipeline of products, if what kind of revenues we expect it would be the first year of FY28 for our own. So it would be, it would be a start. It would be a inflection point. The total number is something that I will not be able to give at this moment. This is a topic that can be discussed maybe later through the year when there is some more clarity in terms of regulatory and in terms of approval timelines that we get from the FDA and from our partners.
Saloni Arya
Sure, sir. Thank you so much.
Operator
Thank you. Participants, if you wish to ask a question, you will press star N1. The next question comes from the line of Avnish from Vikarya. Please go ahead.
Avnish
Hi. Hi Vahim. Good afternoon. Hi. I just have a. First of all, congrats on turning around Inoxil in this quarter. Very well done. Couple of questions on Inoxil and I’m going back to some of the press releases that the company did in November 24th that mentioned about these two products. One was a 505B2 product and there was another product where you articulated that the TAM was about $500 million as in 31st of March 24th. Any color that you can give on these two products. I mean I’m not asking for the name.
Which year would be like the commercial year for these two opportunities.
Bahim Desai
So both the assets are like the exhibit batches for both these assets have been completed at an Oxal and they are currently on stability. One of the assets have completed, I would say the bioequivalence study for Europe and for US it is currently ongoing. We plan on filing this this asset in Europe later this month. Going forward, I, I would say that for this particular asset, the US Bio studies, once completed, the target date for filing the product would be somewhere in Q3 of this FY27. And as far as the other 505 B2 oral liquid product is concerned that the target date of filing is Q4 of FY27.
So both these assets for which the announcement was made in 24 are in line to be filed with the FDA this year.
Avnish
The other 505B2 as that you’re saying filing in 4QFY27 for the U.S. Side?
Bahim Desai
Yes, for the U.S.
Avnish
And the other one is 3QFY27 for the U. S. Right? Correct.
Bahim Desai
Are the both of these assets are 552 assets
Avnish
For both of 505B2. Okay. And I’m, I’m guessing the filing would be done in the partner’s name, right?
Bahim Desai
Correct. Correct. Is an asset light model. So there would be. We would not be holding the NDA in our name and neither any and our name. So it would be at our partner’s name though we would have active profit share throughout the arrangement of this particular program.
Avnish
Okay. And again I’m referring to one of the other questions which happened in January 25, which was about 27 million dollar order for the supply of high demand pharmaceutical products over the next 24 months. Any color on that, like when will this get commercialized? When do we see these coming in the number. So
Bahim Desai
This is. This is referring to the $27 million in the standalone business at is the tender order which was delayed, which had. Due to which there was a softer year at bpl in terms of overall headline, overall top numbers. The resumption of that has started. We expected the order last year, but unfortunately we got the orders somewhere in March, first week of 2026, which got us the. You know, which. Which is where the main delay happened. So this. But the supply has started on that particular one.
I would say that we would be covering 90% of that remaining. Remaining 90% of the order in this year. And then there would be some spillage that we expect, which would be a smaller spillage in the next year. Start of next year.
Avnish
Okay, last question from my side before I get in the queue. You had mentioned in the presentation that you have you will commercialize one CMO product from Inoxil in FY27. One part is that I was a little confused. I mean, I think in one place you mentioned from 1/4 FY27, and the other page you mentioned from the second quarter of FY27. So when will it come?
Bahim Desai
So there are 2 products that we expect to be commercialized this year. First is expected in Q2 and the second is expected between Q3 and Q4.
Avnish
Okay. And these are. So these are like products where you have developed for the partner and you would be taking a profit share. Or these are the
Bahim Desai
CMO partnerships where we are just a contract manufacturer. Until now we were getting various milestones from signing to say stability completion to approval. So there are usually five to six milestones even in a CMO deal. So we were getting those revenues for one of the projects. All six milestones are completed as we’ve got the approval. The commercialization of that would be like I said in Q2 of this financial year for the other asset. We expect the approval to come in anytime between Q3, Q2 end or Q3 and then subsequently in the next couple of months, the commercialization of that would also take place.
So that is the current update on that.
Avnish
Yeah, no, I was. What I was trying to understand is that since you’ve got the milestone payment for these products, I’m guessing you are hand in glove with the development of this product for the partner. In that case, don’t you get like a profit share depending on how successfully the partner is able to commercialize this?
Bahim Desai
No, no, no. So you have to understand that In a CMO partnership also you get a fee. We charge a fee for our service of transferring the product in our facility, taking the exhibit batches, scale up and exhibit batches, putting it on stability, helping in filing the product and then once the approval comes, the commercialization happens. So between the signing of a CMO asset through the manufacturing post approval there are certain inflection points which are milestone based and that is what I am referring to.
That necessarily does not mean that we are involved in the development of the product. If, if we are involved in the development of the product that naturally falls into 3D MO category and not a CMO category.
Avnish
Understood. Thank you. This is very clear. Thanks. I’ll get back.
Operator
Thank you. A reminder to all participants that you may press Star and one to ask a question. There are no further questions from the participant. I would now like to hand the conference over over to Mr. Bahim Desai for closing comments.
Bahim Desai
Thank you. Thank you all. To summarize, FY26 closed our investment phase. Specifically talking from Noxil perspective, the regulatory clearances are now done, the subsidiaries have reached a meaningful scale and the operating leverage is starting to show. FY27 is the year where we expect to see commercial inflection across all three operating businesses. We are aware that the headline standalone numbers for the year is softer than what some of you may have modeled. We explained the reasons and we have line of sight to recovery at least partially in FY27.
We’ve also been transparent on the timing of Uranium Bio Life Sciences and the cash requirement there. We’d rather give you ranges we are confident in than point estimates we have to work back. I want to thank the entire team at Bharat Parentals, Inoxil Life Sciences, Veranium Healthcare and Veranium Bio Life Sciences for an extraordinary year of execution. And to all of you on this call, thank you for your continued trust and patience as we build this group for the long run. Thank you. Enjoy him.
Operator
Thank you on behalf of Philip Capital Private Client Group. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.