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Sanjivani Paranteral Ltd (SANJIVIN) Q1 2026 Earnings Call Transcript

Sanjivani Paranteral Ltd (NSE: SANJIVIN) Q1 2026 Earnings Call dated Aug. 12, 2025

Corporate Participants:

Unidentified Speaker

Ashwani KhemkaChairman and Managing Director

Srivardhan KhemkaExecutive Director

Pritesh JainChief Financial Officer

Analysts:

Unidentified Participant

Hazel RathodAnalyst

Akash PatelAnalyst

Riya SharmaAnalyst

Anupam AgarwalAnalyst

Sagar MehtaAnalyst

Tanmay JhaveriAnalyst

Pankaj KumarAnalyst

Maheshwar PhalkeAnalyst

Presentation:

operator

Ladies and gentlemen, good day and welcome to Sanjeevani parental Limited Q1FY26 earnings conference call. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is now being recorded. I now hand the conference over to Ms. Hazel Rathur. Thank you. And over to you, ma’. Am.

Hazel RathodAnalyst

Thank you. Good evening everyone. Welcome to Sanjeevani parental Limited Q1FY26 earnings conference call. From the management we have with us today Mr. Ashwini Kemka, Chairman and Managing Director. Mr. Srivander Khemka, Executive Director and Mr. Pritesh Jain, Chief Financial Officer. Now I request the management to take us to the key opening remarks after which we can open the floor for the question and answer session. Now I hand over the call to Mr. Srivandar Khenka for his opening remarks. Thank you. And over to you, sir.

Srivardhan KhemkaExecutive Director

Thank you, Razal. Good evening ladies and gentlemen. A very warm welcome to all of you to the Q1FY26 post results earnings conference call of Sanjeevi Pantry Limited. Before I begin, let me mention the standard disclaimer. The presentation that we have uploaded on the stock exchange including the interaction in this call contains or may contain certain forward looking statements concerning our business prospects and profitability which are subject to uncertainties and the actual results could differ from those in such forward looking statements. Let me start with a brief overview of the company. Sanjini Parental is a WMP certified pharmaceutical pioneer with over two and a half decades of experience Specializing in manufacturing of injectables and oral solids.

The company has established itself as a leader in the industry. The company’s primary focus lies in life saving drugs and we export our products to over 25 countries. We are headquartered in Mumbai with WHO GMP certified manufacturing facilities in Navi, Mumbai and Dehragun. We cater to major therapeutic areas including central nervous system, cardiovascular, antibiotic, gastroenterological, anti diabetic and anti allergic. Supported by a strong RNB setup. We categorize our business into three verticals. The base business which is Sanjeevi Pantry Limited. This is the ongoing business which focuses on formulation sales in export markets and in the Indian market.

We are primarily a CDMO player though we have nominal presence in the domestic formulations as well. The Second vertical is SPL Infusion Private Limited. This venture is for manufacturing of IV products and here we hold 60% equity. And the third is Alicia Healthcare which is the nutraceutical venture in Europe where we hold 45% equity. Let me begin with macro backdrop which played an important role in shaping the Q1 performance. The quarter unfolded against a global environment that was both volatile and complex. Trade policy uncertainty was high. Tariff structures in certain key markets were revised mid quarter and negotiations between regional trade blocks created ambiguity in customs documentation and compliance rules.

Geopolitical tensions, especially in parts of Middle east, directly impacted major shipping corridors. The security situation in Red Sea continued to disrupt the Suez Canal route, a key artery for moving goods between Asia, Africa and Europe. Many carriers were forced to divert vessels which not only added incremental days of transit time, but also increased voyage costs due to additional fuel consumption and higher insurance premiums on top of roof diversions. Global container logistics remained under strain. Container availability was tight in several high volume ports. This was compounded by congestion at transshipment hubs where vessels queued for days awaiting birth.

Some cases our consignments were loaded later than schedule simply because the container equipment was not available at the origin port when needed. Currency and commodity movements also added complexity. Crude oil prices moved within a volatile bank during the quarter. These factors collectively kept input cost pressures alive for pharma manufacturers globally even when core API prices were relatively stable. Turning to the pharmaceutical sector, despite these macro headwinds, the industry continued to show resilience demand for essential medicines driven by both chronic therapy and chronic therapy needs and acute care requirements. Healthcare investment trends stayed positive, particularly in emerging markets.

Public health spending continued to rise with governments in Africa, Latam and parts of Asia expanding hospital capacity and access to medicines. These developments support a medium term growth trajectory for the sector. That said, temporary supply chain bottlenecks did constrain execution in Q1 FY26, but these are expected to normalize progressively over the year. For Sanjeevi parent trail macro factors related to shipments had an impact during the quarter. However, the underlying demand remains intact and the logistical situation is already showing signs of easing with our diversified market presence, diversified product portfolio and planned new product introductions and new market entries in the coming quarters.

We remain confident on delivering a stronger performance for the rest of the year. Now coming on company’s performance, Sanjeevani delivered a steady performance in Q1FY26. Overall, the growth was driven by revenues from newer products and volume expansion in existing markets. In Q1 FY26 we reported revenue growth of 8.9% year on year. The export domestic mix was 73.7 to 26.3. Injectable tablet and nutraceutical mix was 50.2, 49.3 and 0.4 respectively. During the last quarter of FY25, the company successfully declared dividend for the first time in its history. This decision reflects the company’s improved financial performance and underscores its commitment to rewarding shareholders while enhancing overall shareholder value.

With this, let me hand over to our CFO Mr. Pritesh Jain for updating you on the financial performance in detail.

Pritesh JainChief Financial Officer

Thank you, Srivadan. Good evening, ladies and gentlemen. A very warm welcome to you all. Let me share the updates on the financial performance of the company. For Q1FY26, the company reported a revenue of 17.9 crores and a growth of 8.9% year on year basis. The growth in the revenue was driven by revenues from the newer products and the volume expansion. The EBITDA was at 2.7 cr. A growth of 10.8% year on year. The EBITDA growth was broadly in line with the revenue growth. The EBITDA margins were at 15% visa vis 14.7% reported during the same period last year.

Profit after tax was at 1.7 crores flat year on year basis due to higher depreciation and interest expense. With this, we can now open the floor for question and answers. Thank you.

Questions and Answers:

operator

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their restaurant telephone. If you wish to remove yourself from the question queue, you may press star and two 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 Akash Patel who is an individual investor. Please go ahead.

Akash Patel

Hello.

operator

Yes, sir. Please.

Srivardhan Khemka

Yes, you’re audible. Yeah.

Akash Patel

Hi. I had one question. A couple of questions. First one on what is the status on the Pune venture? When will the commercialization start on that front? And the second one was on the starting of Prague jv. When? When will the commercialization start? Over there as well. Yeah. Thank you.

Srivardhan Khemka

See, Pune plant, the validation batches and. Stability batches are already being done and final audit has been completed. We are expecting the commercial license in this month itself. And the commercial position will start by the end of this month or first week of September. And regarding the plug we have started, the small order processing has already started. Commercialization is on and Thinking Europe and a lot of restrictions are there due to the geopolitical situation. And those will be reported once the year end in December for the European markets.

Akash Patel

Right, right, right. Right. Yeah. That’s the main questions from my end. And any. Any guidance on you know how. What’s on the future. How the future looking like in the near term.

Srivardhan Khemka

It will be as per the guidelines which we have given and the company will be on the right path and things will be better to look upon.

Akash Patel

All right. That’s it for my son. Thank you so much.

operator

Thank you. The next question is from the line of Riya Sharma who is an individual investor. Please go ahead.

Riya Sharma

Hello. Hello. Yes. Good evening everyone. And thank you for the opportunity. I had to ask you regarding the capital expenditure. So what is the capex for the base business for this quarter? And what are our expectations for the FY 26 and 27 years?

Pritesh Jain

Good evening, Rhea. And thanks. So the CapEx part. We had already provided the numbers on the annual basis in the previous. And we stick to those numbers and we do not share the numbers or disclose for the quarter on quarter basis. And as far as the Whole Year Financial 26. The numbers would remain as disclosed in the previous quarter and 27 would be too early to comment as of today.

Riya Sharma

Okay. Okay. So if I have any questions I’ll get back again. Thank you.

Pritesh Jain

Thank you.

operator

Thank you. The next question is from the line of Sagar Mehta who is an individual investor. Please go ahead. Yes, sir.

Sagar Mehta

Question on spl. So what is our planned revenue and capacity ramp up trajectory for this unit? And what is the annual revenue potential we see for FY26 and 27?

Srivardhan Khemka

Yeah. Sagar, could you please repeat? Your voice got interrupted in the middle.

Sagar Mehta

Yes. So my question is. It’s a follow up question on SPL unit. So what is the planned revenue and capacity ramp up trajectory for this unit? And what is the revenue potential for the. For the FY 26 and 27 in this.

Srivardhan Khemka

Yeah. So the plant is expected to start within this month only. We see the plant starting and ramping up to 65 to 70% capacity in the first year. As far as the revenue potential we have also we have commented on the same in the earlier calls. I will again specify. We will reach around 75 to 80 crores of top line from this plant.

Sagar Mehta

Okay. Thanks sir. With regards to the order book and the export opportunity within this part and what is the margin guidance would be from this unit.

Srivardhan Khemka

Yeah. So again Sagar, we have mentioned the numbers in the previous call. They are not Currently on the tip of my tongue right now. We can come back to you on that.

Sagar Mehta

Nobody sir, thank you so much.

Srivardhan Khemka

But they are mentioned in the transcript.

operator

Okay, thank you. The next question is from the line of Anupal Agarwal from Lucky. Please go ahead.

Anupam Agarwal

Yeah. Hi sir. Good evening and thank you for taking my question. My first question is again on SPL unit. I interacted with you in the last call and the idea in the guidance that you had called out that time was to get approval in April itself and to start commercial supplies from Maine. Why has there been a delay in getting approval from from the party? So it is.

Srivardhan Khemka

Hi Anukum. It was not that the inspection everything was over after that because the government of India’s new guideline on GMP and schedule and revised has been come into effect. And that is why the reason was there for delay in this. And we have the time inspection done recently and we may expect the license any moment. The trial batches, everything for stability has been checked already from the month of June, July and start of August and commercial will be starting by the end of this month or a frequent this will be there on the line.

Anupam Agarwal

And why is there a delay in getting the the approval? Is it because we conducted in a delayed manner or what?

Srivardhan Khemka

No, no it is not that we had conducted earlier. There’s a lot now there’s an online system. The online system. There are a lot of companies who are there in pipeline. We are in fact ahead. There are many companies in India who are in the line for last eight to nine months and once those are processed they can’t do for us. It has been done out of the way to take it ahead in serious.

Anupam Agarwal

Understood. So now like you are saying, commercial supplies will start in September.

Srivardhan Khemka

Yeah.

Anupam Agarwal

Okay, understood. My second question is if you can maybe call out a couple of more reasons as to exactly what happened in the logistic issue. Because I’m hearing this only from your comment and not from any other pharma company comment. As to logistics being a major reason for the setback in this quarter, what exactly happened? If I see sequentially are sequentially numbers have been slightly on the poor side, particularly on the injectable side. So if you can maybe give some idea there.

Srivardhan Khemka

Yes. So Anwar, actually see the logistics aspect. No, it impacts certain ports. So what we experienced when shipping product to Latin America was lack of container availability and this might have happened due to the ship shortage, the vessel shortage that is heading towards that direction. Secondly, we feel that there is some kind of choke that the Chinese carriers also Create and in the Middle east area where we ship our product, the Iran aspect has affected this movement of the vessels. So all in all, logistics has been an impact to our operations in terms of the shipping of the final product.

Now coming to your second. Could you repeat the second part of the question please?

Anupam Agarwal

It was on the injectable side. Sequentially 13 crores of revenue has gone down to 9 crores. Any particular reason behind that.

Srivardhan Khemka

Sir? No particular reason. As you know, the total size of the company’s revenue is not that large. It is just order lumpiness. This quarter it has dropped. The next quarter it will pick up. It’s nothing to do specifically with the business.

Anupam Agarwal

To say that Q1 is likely a leaner quarter and it picks up over the second, third and fourth quarter.

Srivardhan Khemka

Yes, correct. Correct. You can see our trend in the past. Also Q3 and Q4 are always better for us compared to Q1 and Q2.

Anupam Agarwal

Okay. Any. Any idea. Any color you can give us on the pricing and volume for the CDMO business? Is that certain thing? Is that something that is affecting.

Srivardhan Khemka

No, not. Not as such. The overall Indian market is. Has slowed down in terms of volume. So we have not. I mean we personally have not experienced any impact from that because we have a very small portion of our revenue coming from the CDMO business. And as regards to pricing also we have not experienced much pressure on the CDMO front since these are long term contracts and long term relationships that have been going on for more than decades.

Anupam Agarwal

Understood. Just a bookkeeping question. There seems to be a major dip in other expenses. Line Items sequentially from 4 crores to 2 and a half crores. Can you call out a reason behind that?

Pritesh Jain

Yes. So there is a drop as you said. The primary reason for those is one is a cost optimization and secondly, you had a very fewer audits in the current quarter compared to the previous quarter.

Anupam Agarwal

Lower. Sorry, what? Slower.

Pritesh Jain

We had lower. We had fewer inspections for our plants as compared to the previous quarters.

Anupam Agarwal

Okay, understood. By when are we expecting the Prague. Income to come in the P L? Is it December that you called out?

Srivardhan Khemka

Yeah, December will be hearing and the fourth quarter the income will be shown in the.

Anupam Agarwal

So Q4 basically now. Okay. I’ll come back in the Q Sir, if I have further questions. Thank you so much.

operator

Thank you. Next question is from the line of Sanme Javeri from Pinterest Capital. Please go ahead.

Tanmay Jhaveri

Yeah, thank you sir. Good evening. So my question is. Last Chromeca we mentioned that we’ll be adding new products and we’ll be introducing new Product categories. So have we done any so far in this quarter?

Srivardhan Khemka

In Q1 and Q2 both put together we have added around eight products. No specific guidance on the categories as such. But we have added eight products to our portfolio.

Tanmay Jhaveri

Okay, thank you sir. And so my next question is if we see quarter on quarter are Nutraceuticals revenues have been going down. So like how do we see this segment performing in the next few quarters? Maybe Q2, Q3.

Srivardhan Khemka

We definitely see this picking up due to the geopolitical tensions. The first preference is always given to medicine. So we are active in many war zones. So that impacts our new pharceutical revenue. However, we see it will recover and grow from here on out.

Tanmay Jhaveri

And if you could just give some guidance on the margin going forward for this year.

Pritesh Jain

Yeah. So the margins would be in the same line as the guidance is given. So for base business at EBITDA level we should be around 15 odd percentage.

Tanmay Jhaveri

15%. And considering that, I guess will it be fair to say that we’ll be doing around 75 to 80 crores of revenue this year?

Srivardhan Khemka

This year, 75 to 80.

Tanmay Jhaveri

Okay, thank. Thank you so much. I will join back with you. Thank you.

operator

Thank you. The next question is from the line of Pankaj Kumar who is an individual investor. Please go ahead. Mr. Kumar, are you there?

Pankaj Kumar

Hello, I’m audible.

operator

Yes, sir.

Pankaj Kumar

Yeah, hi. Good evening and thank you for the opportunity. So sir, I’m saying that EBITDA margin is stable on yearly basis and quarterly basis which is 14.8%. So my question is that what is the outlook on EBITDA margin and driver for the same. Hello. So are you there? Hello, I’m audible.

operator

Mr. Srivardhan. Sir, are you there?

Pankaj Kumar

Hello.

operator

Just give me a moment.

Pankaj Kumar

Yeah, sure.

Srivardhan Khemka

Yeah, we are back online. I think there was some network issues.

Pankaj Kumar

Okay. Good evening sir. And thank you for the opportunity. So I’m seeing that sir, EBITDA margin is stable on yearly basis and quarterly basis which is 14.8%. So sir, my question is that what is the outlook on EBITDA margin and the driver for the same.

Srivardhan Khemka

So currently sir, what we said we will be guiding this year only. This year will be around 15% only. However, as I have mentioned in my previous calls we are adding new products to our portfolio very rapidly. And what happens is when we add new products the economy of scale is not there. Once the product is matured like 3, 4 years then the economy of scale kicks in. And then our EBITDA margins are bound to improve. What we see is the first batch of products will turn mature in say FY27. So we see the EBITDA margins improve in that year.

Pankaj Kumar

Okay, thank you sir. So sir, my second question is I’m observing that depreciation has increased 13% for that.

Pritesh Jain

Yeah. So whatever capex we had done recently, so the depreciation on then has, on those has been kicked in the current quarter. So this would be a steady number going forward unless there is another major. Capex which we do.

Pankaj Kumar

Okay, thank you sir. Thanks Pramodai. Yeah.

operator

So are you there?

Srivardhan Khemka

Yeah, we, we are here.

Pankaj Kumar

That’s enough of my side sir. Thank you.

operator

Thank you. The next question is from the line of Anupal Agrawal from Lucky. Please go ahead.

Anupam Agarwal

Yeah, thank you for the follow up. Sir, if you can help us understand what is the order book currently for the CDMO business today?

Pritesh Jain

Yes, as we did last year we. Have been to have a growth of around 20%. And we have order book already in place to deliver 20%.

operator

Hello, Mr. Kimka, are you there?

Anupam Agarwal

Yeah, yeah, please, please Mr. Hello? Yes, so we already have order book to deliver 20% growth in the CDMO this year.

Srivardhan Khemka

Yeah, what we did last year, 20% minimum.

Anupam Agarwal

Okay. My second question is if you can call out the top five therapies and how much would they contribute in the current quarter in terms of revenue?

Srivardhan Khemka

So we don’t specifically look at the business from a therapeutic angle. What we look at is as a market specific, region specific category. So LATAM and MENA regions are large contributors. However this we see rapid growth happening in the LATAM region in the Africa region. We are filed in four countries in the French speaking African countries and we are expecting approvals from them for product registration. But the market is very slow because it’s a very we planning to hire agents and teams out there. So the scale up on that front will be slow but the margins will be better.

So currently for this year and the next year Latam is going to be the growth driver for the company.

Anupam Agarwal

If sir, I just want to understand again in slightly more deeper manner. So our PDMO business I believe would be on a cost plus contract model sort of arrangement with the supplier. Is. That right on the margin side?

Srivardhan Khemka

No, our CDMO business is not a job work. It’s a brand which we have been manufacturing for them and we have regulatory approvals for those brands from the DCGI as well as various countries. So it doesn’t work on cost plus the manufacturing charge. They give a margin on it, cost of factory cost and the margins are there and they are in line with the. Our. Most of the reports are in line with our export.

Anupam Agarwal

Okay, understood. In the. On the oral side are these are formulations that we are doing. Are we making healthy EBITDA margin in the overall business formulation? Overall business.

Srivardhan Khemka

It is at par or slightly lower than the injectable business? Injectable is better in terms of margin.

Anupam Agarwal

Okay, understood. How many new products did we add in the last two years? Let’s say FY25 and FY24.

Srivardhan Khemka

I think FY24 was around 30 and 25 was around 20. And this year we have done eight until now.

Anupam Agarwal

Okay, so is it, is it, is it, is there a metric that you track how much revenue is coming from these new products which has, which is launched in the last two years?

Srivardhan Khemka

Sorry, could you come again? Your voice got interrupted.

Anupam Agarwal

My question is, do you track a metric internally how much of revenue is coming from new products which you have launched in the last two years?

Srivardhan Khemka

No, not at the moment. However, what is that? New offerings to get retained with us. And our distributors in those markets are also very happy with our offerings as we keep bringing the newer products to the market. So that helps us retain the old business as well as the sales of the new products begin and it keeps growing from there.

Anupam Agarwal

That’s it for my side, sir. Wish you all the best and hope to talk to you next quarter. Thank you so much.

operator

A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Tanmay Javeri from Pinterest Capital. Please go ahead.

Tanmay Jhaveri

Thank you for opportunity again, sir. So when we say that injectables have better margins. So if I see at the presentation. So here on your product, mix has been reducing for injectables like we had 70% last year. This quarter we have around 50%. So any specific reason for this decline?

Srivardhan Khemka

So if you see, you’re seeing only from the mix perspective, but you see our revenue is also growing, right. We have to grow the top line of the company. So overall solids are much simpler to enter the market with. And then we pitch the injectables to our customers. So we are slowly scaling up both sides of it and we are trying to keep our injectable business very niche so that we can earn the better margins on it.

Tanmay Jhaveri

Okay, and how do you see the demands for this like evolving in India and globally? Like if like are we gaining any market shares related to our peers for any specific either in parental or injectable products?

Srivardhan Khemka

Yeah, in Latin American markets we have A healthy share of the market in injectable space. It is not product specific but dosage form specific injectables. We would rank in the top eight top 10 players in those markets.

Tanmay Jhaveri

Okay, I guess that’s it from my side. Thank you and all the best sir.

operator

Thank you. The next question is from the line of ca. From CA Financial advisor. Please go ahead.

Unidentified Participant

Yeah, good evening. This question, the levels of 14 swaps which were filed in the Franco issue in Franco African markets. So is there any development there, any Spain happening on those? What are the prospects in the next couple of years?

Srivardhan Khemka

Sorry sir, your voice was not clear. I heard something about the frank francophone.

Unidentified Participant

Countries so I’m referring to the reference which was made in last earnings call about some 48 products which were fired in the Franco African nations. So just wanted to know is there any development, further development on those? Have any sales began to happen and what are the prospects for the next couple of years?

Srivardhan Khemka

Great. So no, no further development per se. In terms of concrete development we are still waiting on the registrations of those products. However we are slowly starting to see demand of certain products in the tender of those markets and we are filing for expedited registrations. If our price is better and our dossier is perfect we might get those granted early. However as I mentioned earlier those markets are very slow to grow in as most of the market is branded and once the registration even comes in the volumes are very slow to grow in the beginning.

So we are still waiting on the registration and the revenue should start coming in by next year.

Unidentified Participant

Okay, thank you sir.

operator

Thank you. The next question is from the line of Maheshwar Falake who was an individual investor. Please go ahead.

Maheshwar Phalke

So what are the current base levels?

Pritesh Jain

So the currently the date levels are. Yeah, the current date levels are 6 crores as of now. Sir, can you come back on the questions because I was not able to hear you last quarter it was showing that we are not.

operator

You are not audible Mr. Maheshwar, we. Can’T hear you properly.

Maheshwar Phalke

No, last quarter the date is around.

Pritesh Jain

So yes there would there are minor repayments because those are working capital limits. So those won’t be steady as we go further in the this one.

Maheshwar Phalke

And what is the reason for gross margin reduction from 15 to 28%?

Srivardhan Khemka

See in the recent time the overall market was having pressure of sales. However we managed to grow our revenue in spite of these pressures. Due to this we had to face a little decline in the gross margins. However we made up the gap by controlling our other expenses. So all in all, we stood at stood at a stable level.

Maheshwar Phalke

What are the current trade receivables?

Pritesh Jain

The current trade receivables are in the range of 8 crores.

Maheshwar Phalke

Okay. Thank you.

operator

Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Sri Vardhan Kemka for closing comments.

Srivardhan Khemka

Yes. Thank you all for joining us today. We really appreciate your trust and support and continue confidence in us. We look forward to speaking again in the next earnings calls. With that, we conclude today’s earnings call. Thank you so much.

operator

Thank you.

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