SMS Pharmaceuticals Ltd(SMSPHARMA)

NSE: SMSPHARMABSE: 532815

₹ 415.3-3.07%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 3,889 crWebsite: www.smspharma.comUpdated: 24 Oct 2026

About

SMS Pharmaceuticals is an Indian maker of active pharmaceutical ingredients (APIs), with a portfolio of 55+ APIs across 14 therapeutic segments. Its main areas are anti-inflammatory, anti-retroviral (ARV) and anti-diabetic APIs. It reported revenue of 886.87 crore in FY26, and 88% of FY2025-26 revenue came from regulated markets. The company says it runs Asia's largest dedicated single-block Ibuprofen manufacturing facility and describes itself as one of the leading exporters of triptans.^[1][2][3]

Revenue mix

Exports were 67.20% of revenue (Rs 595.99 cr) in FY26, compared with 69.35% in FY25.^[1][4]
Domestic sales were 32.80% of revenue (Rs 290.88 cr) in FY26, compared with 30.65% in FY25.^[1][4]
ARV (anti-retroviral) APIs were the largest therapeutic segment, at 28% of 9MFY26 revenue. The company classes ARV as a high-volume category.^[5]
Anti-inflammatory APIs, including ibuprofen, were 20% of 9MFY26 revenue. The company classes them as a high-value category.^[5]
Anti-diabetic APIs were 19% of 9MFY26 revenue. At the start of Q3 FY26 the company moved resources away from this segment because of pressure on prices and demand.^[5]
High-value products were 47% of FY26 revenue. The company's medium-term target is about 60%.^[2]

Products and market position

The portfolio covers 55+ APIs across 14 therapeutic segments as of FY26. 20 products have been added since FY22.^[1]
The company says it has Asia's largest dedicated single-block Ibuprofen manufacturing facility and is one of the leading exporters of triptans.^[1]
3,600.67 MT of product was sold, according to the FY26 annual report.^[1]
The company's stated aim is to become the #1 global anti-inflammatory player (Q1 FY27).^[6]

Manufacturing

The company runs 2 manufacturing facilities with installed capacity of over 3,120 KL as of FY26: 3,000 KL at Vizag and 120 KL at Hyderabad.^[1]
Ibuprofen installed capacity was 500 MT/month in Q4 FY26, running at about 80% utilisation.^[2]
Both facilities hold USFDA, EU GMP, KFDA and PMDA approvals.^[7]
Key intermediates are now made in-house (backward integration), and the company is widening its domestic supplier base (FY26).^[1]

Regulatory filings and R&D

140+ DMFs had been filed across global markets as of FY26. Approvals come from USFDA, EU-GMP, PMDA, KFDA and CDSCO.^[1]
The company filed 12 DMFs and CEPs in FY26 and 4 DMF/CEP filings in Q1 FY27, against a target of 10 for FY27.^[1][6]
The R&D team grew to 200 in Q1 FY27, up from 100+ scientists in FY26. The company holds 35+ process patents.^[6][1]
R&D spending was 2.4% of sales in FY25.^[7]
The company expects the peptide pipeline to be fully operational by FY29.^[1]

Key operating numbers

Gross margin was 36% in Q1 FY27, up 217 bps year on year. FY26 gross margin was 34%.^[6][2]
Net asset turnover was 1.36x in Q1 FY27, compared with 1.55x annualised in H1 FY26. The target is an average of 1.75x over the next 2-3 years.^[6][8]
The 10-year average conversion of operating profit into operating cash flow was 66%.^[5]

Customers and markets

The company exports to more than 75 countries. 88% of FY2025-26 revenue came from regulated markets.^[1]
It serves more than 800 customers, including leading global pharmaceutical companies (FY26).^[1]
The largest single customer accounted for about 22% of FY25 revenue.^[7]
A joint venture with Spain's Chemo Iberica SA develops generics and sells APIs. Five new high-value products for the JV are targeted for commercial launch in FY27.^[1][2]
Associate VKT Pharma makes finished formulations and contributed Rs 14 crore to FY26 PAT.^[1]

Expansion and capex

A Rs 280 cr capex programme, 89% of it brownfield, was on track in Q1 FY27 for completion by FY27. The company expects incremental revenue from FY28.^[6][2]
Land acquisition for a greenfield project was in process as of Q1 FY27. The capex programme includes Rs 30 crore for this land.^[6][8]
Ibuprofen capacity is being expanded from 500 MT/month to 800 MT/month. The long-term aim is 1,000 MT/month.^[2]
The Board approved a loan of up to Rs 50 cr to subsidiary SMS Peptides in Q1 FY27, on top of Rs 8 cr invested in FY26.^[6]

Recent developments

CARE Ratings has assigned the company CARE A with a Positive outlook, and CARE A1, according to the FY26 annual report.^[1]
The FY26 annual report names West Asia tensions as a risk, because higher crude oil prices have raised petrochemical costs.^[1]
The ARV segment gained market share in FY26, helped by a lower cost structure after backward integration.^[2]
Competition in anti-diabetic APIs increased after the sitagliptin phosphate patent expired, as new entrants took share in FY26.^[8]

Market Cap

₹3,889 Cr

High / Low

₹494 / 271

Stock P/E

37.9

Price / Book

5.0

Book Value

₹84

EPS

₹10.9

No. of Shares

9.37 Cr

ROCE

14.6%

ROE

14.3%

OPM

15.6%

Debt / Equity

0.46

Sales

₹887 Cr

Net Profit

₹102 Cr

Promoter holding

68.1%

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