Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
RPG LIFE SCIENCES LTD (NSE: RPGL) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Ashok Nair — Managing Director
Unidentified Speaker
Analysts:
Candice Pereira — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Ahmed Madha — Analyst
Aditya Goyal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the RPG Life Sciences Q4FY26 results conference call hosted by Dalit Capital Markets Private Limited. As a reminder, all participant lines will be in the lesson 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 touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Candice Pereira from Dalit Capital. Thank you. And over to you, ma’. Am.
Candice Pereira — Analyst
Thank you. Ikra. Good evening everyone. I, Candice Pereira, on behalf of Dollar Capital, welcome you all to the Q4FY26 earnings conference call of RPG Life Sciences Ltd. I would like to thank the management for giving us this opportunity to host the call today. From the management, we have Mr. Ashok Nayak, managing director and Mr. Amol, lone CFO. I now hand over the conference to the management for the opening remarks. Over to you sir.
Ashok Nair — Managing Director
Thank you very much. Good day and warm welcome to everyone and thank you for joining us today. It’s a pleasure to connect with all of you and share our performance for the fourth quarter as well as for the full financial year. FY26. We sincerely appreciate your continued interest and support. Now, RPG Life Sciences continues to strengthen its position as an integrated pharmaceutical company with a clear focus on quality, execution, excellence and a long term value creation. As you are aware, RPG Life Sciences has a rich legacy spanning over five decades.
From its origins as a joint venture between JD CERN and rpg, the company has evolved into a diversified pharmaceutical business with presence across branded formulations, global generics and synthetic API space. Over the past few years, we have undertaken a structured transformation journey, sharpening our portfolio, strengthening execution capabilities and building a more disciplined and scalable operating model. This transformation is reflected not only in our financial performance, but also in the way we approach markets, engage with health care professionals and improve productivity across the organization.
Over time, we have built strong capabilities across our wide portfolio backed by robust manufacturing and R and D which enables us to operate not only Pan India but also export to across 50 plus countries. Today we reach over 100,000 doctors including more than 36,000 specialists across a wide range of therapy areas. Our digital engagement platform, RPG Serve supports this outreach by enabling more structured, data led and targeted interactions with healthcare professionals. Our reach expands to wide range of doctors including nephrologists, rheumatologists, oncologists, urologists, neuropsychiatrists, gastroenterologists, cardiologists and of course the GP and cp.
Our portfolio of six textbook brands continues to be widely prescribed and taught in medical colleges reflecting strong brand equity built over decades. Our manufacturing footprint includes three state of the art facilities, two for domestic and international formulation and another one for APIs supported by integrated RD along with a robust portfolio, we continuously focus on broadening our portfolio depth and therapy expertise through new product development and strategic partnerships. We have a professional team size of over 1,350 employees providing us with the right set of talent, intent and capability to further accelerate our growth.
If you see our performance for Q4 and quarter FY26, let me give you a brief performance deep dive now as far as domestic formulation continues to be the core of our business, contributing to 69% of our business. I’m proud to share with you that Qatar 4 has been a period of robust performance for us. Our revenue from operations grew by 23.6% along with 48% increase in EBITDA and 58.1% increase in PAT excluding exceptional items. While the Indian pharma market grew by 10.1 in quarter four, our domestic formulations have outpaced the market with a growth of 18.2% which means that we have grown 1.8 times the market.
The quarter performance has made us the fourth fastest growing pharma company in quarter four among the top 50 pharma companies as per Pharma Tribe March 2023 database. We were also able to advance our IPM ranking by six places from rank 58 in FY25 to rank 52 in FY26. Importantly, this growth is driven by well planned and focused efforts of our team towards volume expansion, improved specialty coverage, stronger execution, quality, strategic brand building and sharp medical marketing initiatives.
This trend has been consistent across all four quarters of the year where we are consistently grown ahead of the market for the full year. FY26. While the Indian pharmaceutical market grew by 8.6%, we delivered a strong 13.7% growth meaning that we grew 1.6 times the market backed by a robust volume growth. We have successfully launched key products to strengthen our foray in patient care and such focused launches have helped us achieve meaningful sales number for products within nine months of launch.
Look into our brand strength and portfolio depth. Our leading brand in the pain management category. Naprosyn continues to deliver performance with 24% growth in quarter four and 15.6% growth in FY20. This is among the highest growth performance in the past few years for Naprosyn and validates the success of our medical marketing interventions. We remain on track to build this into a 100 crore brand especially with the launch of new SKUs to advance Naprosen brand architecture. Our immunosuppressant portfolio anchored by large brands such as Azoron and Moffitt continues to show steady traction.
We are strengthening this segment through therapy expansions, life cycle management and deeper engagement with specialty doctors to make it a 100 crore basket first and accelerate it further in biologics. Our monoclonal antibiotic portfolio called MAPS recorded a healthy 12.0% growth in quarter four. We are now present in most big and progressive MAP space and are continuously focused on increasing our market share. We have also revitalized our legacy brands like Northbase and Sereneness. Northpace in particularly grew 50% in FY26 and we are scaling up awareness through CMEs, journal publications and targeted campaigns across our top therapy baskets especially Pain, Cardiovascular, Nephro, Oncology and Ruma.
We continue to see steady double digit growth supported by better execution. Nephrology grew by 55% in FY26 supported by new launches. Rheumatology portfolio grew by 40% and oncology grew by 23% and pain management grew by 19% in FY26. Our focus remains on building depth within therapist to sustain our growth trajectory. A key driver of our performance has been improvement in execution metrics. Operationally we have made significant strides in salesforce productivity which now stands at 6.5 lakhs per month up from 5.7 lakhs last year.
Whereas the specialty segments our productivity has improved from 13.2 lakhs to 16.7 lakhs reflecting strong execution and high value therapies. We also improved our sales hygiene, reduced expiries and returns. We have improved our doctor call average, improved the success concentration for feedforce and enhanced Dr. Engagement through rapid digital first and AI first platform. We have strengthened our operating discipline through a set of focused initiatives designed to improve field effectiveness by integrating digital tools and automation into our workflows.
We are enabling our medical representatives to make better use of the time and we are already seeing enhanced productivity in the field. New launches have contributed meaningfully during the year. Products such as Preserve and RPCET have shown increasing traction based on our differentiated positioning. Going forward we continue to focus on relevant therapy gaps and invest in building a stronger pipeline particularly in specialty segments. As far as the digital and capability building, our proprietary doctor engagement platform, RPG Serve continues to play a central role in strengthening our digital engagement with doctors.
We are currently announcing the platform further with more intelligent and personalized capabilities including AI LED content delivery and sharper segmentation. This helps us move from a one size fits all approach to more contextual engagement with our doctors. Going forward, RPG Serve will continue to play a big role in deepening and customizing our reach and engagement. Moving to International foundation which contributes 17% of our revenues, we are executing a long term build strategy focused on regulatory readiness, R and D output and audit preparedness.
During the year. Performance in this segment was impacted due to inventory rationalization by certain customers and some regulatory delays in host countries. We are expanding our customer relationship in Canada, Africa and continue to focus on measures to enhance customer engagement. Our R and D scientist strength and lab capabilities has increased and we are actively tracking market caps to drive revenue. We have taken steps to strengthen this business through expansion of customer relationship, onboarding of CDM opportunities and increasing our presence in new markets.
Amidst global uncertainties and pharma tariff threats, we are focusing on consolidating our business into our core export regulated and emerging markets with a clear focus on three pillars, new customers, new markets and new products. We are actively expanding into emerging markets such as Myanmar, Vietnam, Philippines, Thailand, Sri Lanka, Egypt, Sudan and South Africa with multiple product registrations underway. As far as the API business, this API segment which contributed around 14% of the revenues, we experienced disruption earlier in the year due to the fire incident.
During our last call I had shared how the restoration process was completed on time and in September 25th and validation process started thereafter. I’m happy to share that despite this disruption, the API business has demonstrated strong recovery with quarter four revenues at 33.3 crores reflecting a meaningful bounce back. Despite our plan remaining affected due to the fire impact for the larger part of the year, we are happy to share that we have grown a 5% year on year thanks to the team’s resilience and strong fundamentals of our IPI business.
Our plant is now fully operational and we are further strengthening our product pipeline organically which has improved significantly over the last couple of years continuously monitoring the West Asia war developments. While we don’t foresee any severe impact due to the wa, we have built an internal task force to effectively navigate through current conditions. If you look over our overall financial performance at the overall company level, we have delivered a steady and robust financial performance.
Our revenue from operations for quarter four stood at 176.9 crore versus 143.1 crore in quarter four last year. This means a healthy 23.6% growth in revenues. Our EBITDA grew by 48.0% from 30.6 crores in Q4 last year to 45.2 crores this quarter helping improve our EBITDA margin from 21.4% in Q4 FY25 to 25.6% this quarter. Our PBT before exceptional item is also up Y o y from 17.5% to 22.1% this quarter. Coming to annual performance, FY26 stood at 707.5 crores reflecting a healthy 8.3% growth over last year despite API business being disrupted due to fire related restoration for larger part of the year.
On the profitability front, EBITDA for the year FY26 stood at 172.7 crores versus 172 crores in FY25 with a healthy EBITDA margin of 24.4 and PBT of 21.2% and PAT of 15.8% for FY26. We continue to maintain a strong balance sheet with a cash surplus of approximately 275 crores despite investing over 140 crores capex over last four to five years. These investments have enabled us to modernize and expand our facilities bringing cost efficiencies and position our business to drive future growth. The long term ICRA rating has been reaffirmed at A with the outlook remaining stable while the short term rating has been reaffirmed at emac.
Our strong financial foundation and prudent capital deployment empower us to pursue both organic and inorganic growth opportunities, strengthening our presence in domestic and international market. If you look the recognition during this year we were recognized as the leading Mid Corporate of India 2025 at Dunn and Bradstreet. This award is in line with the Best Corporate, Best Brand, Best Patent and the Best Corporate Citizen and Best Value in Action awards that we have received in recent years as part of our diversified 5.2 billion RPG group.
We operate with a strong emphasis on corporate governance, ethical conduct and People first philosophy review. Investment in our people and organizational capability as equally important as our business strategy in driving long term success. The RPG Group is also unique in recognizing happiness as a core organizational value, reinforcing our commitment to a positive and purpose driven workplace. We continue to invest in strengthening our organizational capabilities and leadership pipeline through Focused succession planning and capability building initiatives.
This ensures we have the depth and talent required to sustain our growth momentum in the years ahead. In parallel, we are advancing our ESG agenda with a clear emphasis on responsible business practices, regulatory compliance and sustainability. These priorities are embedded into our day to day operations and are central to how we create long term value for our stakeholders. Thank you very much for your continued support and my pleasure that we will now open the floor for questions. Thank you.
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rajesh Joshi from Crisp Capital. Please go ahead.
Unidentified Speaker
Yeah, thank you for your opportunity and congratulations on a good set of numbers. My first question would be on the breakup of our growth. So if you can just help us with the breakup of our growth number into volume, price and new introductions please.
Questions and Answers:
Ashok Nair
Yeah. So I speak first about quarter four FY26. Our volume growth has been 9 point percent compared to the market of 1.1%. Our price growth has been 3.3 as compared to 5.5 of the market. And our new introductions has been 5.1 as compared to the market of 3. So overall we are at 18.2 as compared to 10.1 as far as the quarter is concerned. Just to give you for the full year our volume has grown by 7.0 as compared to 0.7 of IPM. Price is 2.6 as compared to 5.4 and our new introductions is 4.1 as compared to 2.5 of market.
So overall 13.7% compared to 8.6% almost 1.6% times and the market.
Unidentified Participant
Thank you. My next question will be on margins, right? So now that our API plant is back online and fully operational, how should one look at gross margins for the next year and medium term? Because I think career with the API plant non operational have been depressed a bit. I just wanted to get some clarity on that.
Ashok Nair
So if you look the past 34 years you would notice that our API margins have been consistent on 30% and that first nine months of course you were aware what would have happened. So looking into the past we will sustain. We’ll be sustaining the same thing and you won’t challenges from that front.
Unidentified Participant
The margin
Ashok Nair
Stabilization has already started happening with the API coming back. So
Unidentified Participant
Call it sir. Got it. And lastly a small bookkeeping query. Other expenses for this quarter have been on an elevated level. So just want to know if there are any one offs in other expenses for this quarter.
Ashok Nair
Can you come again? Sorry I didn’t get
Unidentified Participant
For this quarter. Q4 Other expenses have been at an elevated level compared to our level earlier in the preceding few quarters. They sure know was there any one off with regards to other expenses for this quarter.
Unidentified Participant
So hi, this is Amol here cfo. So I’ll address this question. Basically there is no one off per se. This being a quarter four is a pharma trend that we have expiries are coming in this quarter and which is normal in you compare same quarter last year but no enough to answer your question.
Unidentified Participant
Understood. All right, thank you sir. Wishing you all the very best.
Operator
Thank you. The next question is from the line of Avnish Barman from Vaqueria Fund. Please go ahead.
Unidentified Participant
Hi, good evening. Thanks for taking my question. I have two questions. One on the raw material price cost increases that you would be seeing. And it could be raw material, could be utility cost increases. I just wanted to know how you are planning to pass it on or absorb in your two broad buckets of businesses. One is the domestic side and one is the international side. And if this has happened in the past, is there a precedent of, you know, passing these cost inflation in its entirety or the case is more of like absorbing like some pain is absorbed by your suppliers and some by you and then some by the customers.
How does it pan out?
Ashok Nair
So the first is we also are closely monitoring evolving geopolitical situation as of now and currently there is no material impact on our business and we’ve been covered now at least for the next three months. So we do not see any foresee any significant disruption at this stage. Having said that, we have also passed our price increases to some of our customers and few of them have actually accepted our increased price. So we’ll be able to do that. We also have now factored the situation. What is that we should do if the situation currently is as it is and what we should do if it becomes more volatile and what the third is if it gets escalates.
So we have a very clear roadmap on this on what exactly we need to do. If you look our intent is very simple. We quantify the exposure with clear triggers, confirm where we stand today and we summarize the mitigation actions already under the bay. So net net we are not watching this passively. We Have a measurable triggers and a quantified cost range. And a mitigation engine is already moving on this. So for now we don’t see foresee any challenges here.
Unidentified Participant
Okay, the second question is also kind of related. I’m assuming that a part of the manufacturing that you do for your domestic business is outsourced to your CMO partner. In that case, if your CMO partner see let’s say reasonable increase in their API prices or packaging material prices or solvent prices, it could be any part of their bill of materials. Then because they typically work on thinner margins than a marketing company, do they pass it on entirely to you? Or there is the pain shared.
Ashok Nair
So you can call it serenity. When February, the war broke out in March first week in fact we met most of the important clients where our major APIs and major products were sourced from them. And we were able to log prices for six months. So that something has actually protected us. Yes, there is always a constant ask from the clients also that whether we can increase the price. Currently we’ve been able to protect it. I think for the next year, six months we should not have any challenge. Plus Almost for us 25 to 30% is outsourced.
But we already have the inventory coverage with us. So that’s something which. The second thing is we also see that there can be an upside due to the exchange rate in our export business which contributes to 30% of the business. So overall I think we are in a good place now.
Unidentified Participant
Okay, just to. Just to make sure I understood it correctly, you are saying that whatever API prices increased your CMO partners would have seen because your prices are locked for six months. So it’s basically it comes on to their PNL and not your PNL at least for the next six months. Is that the understanding?
Ashok Nair
That’s exactly the understanding.
Unidentified Participant
Thank you so much. I’ll get back in the queue.
Operator
Thank you. Next question is from the line of Ranjit Verma from Samiksha Capital. Please go ahead.
Unidentified Participant
Yes. First of all congratulations on a great set of number. I have a few questions. First one, if you look at the cash flow, the same has declined mainly because of the working capital days have increased. So do we see that working capital level going forward and do we expect inventory levels to remain at a higher level going forward as well as it is higher.
Unidentified Participant
So our cash flow at a steady state, it’s not declined. So if you see the reserve, the bank balance on the investment, we’re at 275 crore versus 266 crore last year. So having Said that the working capital cycle is increased now with an increase in the business. We don’t see any risks or any adverse impact on the working capital increase on your business.
Ashok Nair
Just to add to amol, the working capital is also due to the strategic procurement and increased share of our IR business which operates at a higher credit cycle.
Unidentified Participant
Okay, so my next question is other current assets have increased by more than 20 crores if you compare to last year. So. So what’s the reason for the same?
Unidentified Participant
So one of the impact in this is the inverted duty supply, the GST structure where we have 5% at for our outward products and 12 18% for our inward. So that is the major increase. Other than that this is purely related to business.
Unidentified Participant
Okay. Okay. Thank you. Thank you.
Unidentified Participant
Thank you.
Operator
Thank you. The next question is from the line of Yash Doshi from Unifi Capital Private. Please go ahead.
Ahmed Madha
Hi sir. Congratulations for a good set of numbers. I have a few clarifications. One thing on the other expense part actually I didn’t get it. So what was the reason for the increase in other expenses?
Unidentified Participant
So see as I explained from the pharma. So basically the pharma industry all the expiry, the supply chain is through the CFAs and the stockist and the expiries are accounted or returned on the stockist accumulated and sent in quarter four of the financial year. So if you see the similar is there in the previous year, same quarter as well. And it’s a general trend of that. So we have the expiry which will come in this quarter. That is why if you see that is why the trend as compared to the previous quarter is higher in this quarter.
There is nothing else in addition to this the percentage of, I mean the revenue has been gone up and then the sales and admin expenses which is in line with the revenue will be up. Nothing, nothing more than that.
Ahmed Madha
So going forward in next quarter onwards the other expense will once again normalize, right?
Unidentified Participant
Yes.
Ashok Nair
Yes, absolutely. Absolutely.
Unidentified Participant
If
Ashok Nair
You also see as a percentage of revenue of operations it has actually grown degr and the percentage remains same. So.
Ahmed Madha
Okay. And another part was basically in the international formulation segment a few of our customers had a rationalization of inventory. Just wanted to check whether it’s a kind of temporary blip or it’s more of a. What is it medium term, like they’ll be ordering less. In that specific I wanted to understand going forward how will the order flow from the clients be in the international segment.
Ashok Nair
So basically what happens is it’s a temporary play because an Inventory correction happens only once time. So they were carrying out an inventory of 90 to 95 days which has come down to 30 to 35 days. So that has now become the standard base. So for this year that will what will continue and then we will not have any challenges and suddenly there’s going to be a team. So we are very clear it will be more of a sustainable and we now clear that what is the inventory days they are going to maintain.
Ahmed Madha
Okay. And another thing I wanted to ask was is there any new launches which we are targeting on ROW and emerging markets
Ashok Nair
Before row and emerging market. We have a good pipeline in domestic we have increased our not not only increased, we have created another business for cardiology and urology. So we have a very strong pipeline of new cardiac products and urology products coming into this second. Also in our pain management we are coming out with new Naprosyn line extensions. Now as far as ROW and international, you said the IAF has now five CDM of projects which we are developing and almost three should be happening in this year and two in the FY28.
And our IFRND pipeline has already 10 molecules and our API has 13. So we are overall investing in seeing how we can increase our share of of new products both in emerging markets, regulated market and inter API business. So that’s the idea.
Ahmed Madha
Yeah. Just two questions more. One is in Napros and if I recollect last time we had the discussion regarding in Canada we had applied for OTC in partnership with Walmart. So any update on that, sir?
Ashok Nair
Yeah, so as said we already have got an approval regulatory authorities and also from the Walmart month. But the client has to undergo a social compliance. So that is where we are at. So once that happens by September October is what we should be actually be able to commercialize our mappro centric.
Ahmed Madha
Okay. By September and just a broad understanding on the like international permutation segment. What I get to know is next year onwards we will be once again back to the growth segment experience.
Ashok Nair
You’re talking if. Yeah, he’s considering as I said the inventory rationalization is a temporary play and we have also if you recollect that I said we have expanded into newer markets especially in Africa and others. So we should be back to the growth where we were for the last four, five years.
Ahmed Madha
Okay. And considering like we had an API FHIR last year. So are we considering of having another API unit in the form of an M and A. We can basically diversify our risk. So next time we shouldn’t be in A situation where the same problem we face, are we any contemplating about it?
Ashok Nair
So if you look at the strategy, we are always in the lookout and in organic for both formulations and the API business. So for us it has to be a prudent value. For us it has to be value equity. So we are looking into multiple assets and as the due course of time when things are perfectly for us, I think we should be able to come back to you.
Ahmed Madha
Okay, and just last one regarding the growth for domestic, international and your API, can you provide a guidance like maybe in the medium term how we are looking at and I think specific one of your interviews. API will be the next growth level for the company. So can you just give a brief on that?
Ashok Nair
So if you see again I need to mention that you will see consist for the last four years consistently our domestic has grown at 2. API has grown at 9 to 10% and international formation 9 to 5%. If you look our quarter four, we almost grown by 144% in API. That’s also a strong bounce back. So going forward we will continue to maintain that, we’ll continue to sustain that particular growth. And of course as we API is our growth driver. So a lot of efforts are going into API to see that we’ve grown further better and we have a very strong pipeline.
The API as mentioned, almost around 13 products are there and newer markets are there. So in fact our growth is structured and fundamental and the basis is that we should be able to further expand and the growth trajectory looks good.
Ahmed Madha
Yeah. Okay sir. Thank you, I’ll join.
Ashok Nair
Thank you. Thank you.
Operator
Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star N1. The next question is from the line of Aditya Goyal from Maturon Investment. Please go ahead.
Aditya Goyal
Hello, good afternoon and congratulations on a great set of numbers. I have a couple of questions. Number one is a follow up from the previous one. So for the guidance of growth, where do you expect the growth to come from for the next couple of years? Will it be more of volume, price or new introductions? If you could give an idea similar to what you had given a breakup earlier for this year.
Ashok Nair
Yeah. So if you look again, we have a very strong volume back growth considering almost 30% of our product are in DPCO. So for us going behind a price increase, the strategy is to grow the volumes. And you will see that we are growing at 9.9.8% volume versus 1.1 of the industry. And the second biggest growth driver for us will be new Products. Again, if you look this year we have been almost grown by 5.1% as around 2%. So for us the key will be these two, the volume back and the new product. Having said that, the product which are in the pipeline in the domestic are the ones which will be actually launching with a higher gross margins.
So we will be able to protect that. There should be a far better price increase growth than the earlier years.
Aditya Goyal
Okay, understood. My second question is related to US FBA approval. So a couple of quarters back when we concur, you’d mentioned that the company would like to go for an approval subject to development of the product portfolio. So with all the developments that are happening right now and how the portfolio and the execution capabilities set up with the plan modernization, do you think you are closer to planning a USDA going for an approval like that?
Ashok Nair
So as I mentioned earlier also see, while our plans are of a level that would be U.S. FDA approval, we would actually seek approval only when there’s a significant basket of product with strong market share in the us. Of course the rationale is that the approval process is lengthy and the market dynamics often shift by the time approval is secured. So the company is also mindful of the cost benefit equation and does not want the burden the profit and loss statement with high US FDI related cost.
And having said that, we have a strong presence minus us in every other geographies and markets. So that should actually be far greater and helpful for us going forward.
Aditya Goyal
Understood. Okay, thank you so much.
Ashok Nair
Thank you. Thank you.
Operator
Thank you. Participants, you may please press star N1 to ask a question. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comments.
Ashok Nair
Thank you very much everybody. Thanks for attending and participating and thank you once again.
Operator
Thank you very much on behalf of Dalit Capital Markets Private Limited. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines.