| Market Cap | ₹4,558 CrSmall Cap |
|---|---|
| P/E Ratio | 44.51Sector PE 41.34 |
| Promoter Holding | 68.07%Unchanged QoQ |
| 1-Year Return | 79.97%Price Performance |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 316 | 207 | 242 |
| Other Income | 1.3 | 1.7 | 1.4 |
| Total Income | 317 | 209 | 244 |
| Profit Before Tax | 52.8 | 27.2 | 34.0 |
| Net Profit | 39.9 | 20.9 | 25.3 |
| Operating Margin | 16.6% | 13.0% | 13.9% |
| Net Profit QoQ | +90.9% | ||
| Net Profit YoY | +57.7% | ||
| Adj. Profit QoQ | +102.0% | ||
| Adj. Profit YoY | +58.0% | ||
Key highlights
- Net profit reached ₹39.9 crore, representing a 90.9% sequential growth over Q1 FY27
- Revenue from operations grew 30.6% year-on-year to hit ₹316 crore for the quarter
- Operating margins expanded to 16.6% compared to 13.9% in the same period last year
- Total income for the quarter stood at ₹317 crore including other income of ₹1.3 crore
- Board approved the appointment of Mr. Manohar Mollama as the new Company Secretary
Sharp Growth in Operating Revenue and Profitability
SMS Pharmaceuticals recorded a significant improvement in its financial performance for the quarter ended September 30, 2026. Operating revenue reached ₹316 crore, a sharp rise from the ₹207 crore reported in the preceding quarter. This performance drove profit before tax to ₹52.8 crore, significantly higher than the ₹27.2 crore achieved in Q1-27.
The company's focus on Active Pharmaceutical Ingredients and their intermediates, which constitutes its single reportable business segment, continues to provide a streamlined operational focus. On a standalone basis, the net profit for the quarter stood at ₹39.13 crore before consolidated adjustments brought the final figure to ₹39.9 crore.
Expansion in Operating Margins and Cost Management
Efficiency gains were evident in the company's margin profile, with operating margins climbing to 16.6% for the quarter. This expansion from 13.0% in the previous quarter suggests successful cost management and scale benefits. Total expenses for the quarter were ₹264.61 crore on a consolidated basis, with the cost of materials consumed remaining the largest component at ₹168.08 crore.
The company's tax expenses for the quarter amounted to ₹13.25 crore. Other income contributed a modest ₹1.3 crore to the total income, showing that the growth was predominantly driven by core operational activities in the pharmaceutical segment.
Management Transition and Shareholder Returns
- Mr. Thirumalesh Tumma resigned as Company Secretary and Compliance Officer effective close of business on November 4, 2026.
- Mr. Manohar Mollama (F11904) was appointed as the new Company Secretary and Key Managerial Personnel effective November 5, 2026.
- The company completed the disbursement of a ₹0.40 per equity share dividend on September 30, 2026, for the previous financial year.
- Total dividend payout aggregated to ₹374.61 lakhs as approved in the 37th Annual General Meeting.
- Promoter holding remains stable at 68.07%, with 17.99% of those shares currently pledged.
Capacity Expansion and Strategic Outlook
The results come as the company continues to execute its ₹280 crore capital expenditure programme targeted for completion by FY27. This investment is focused on capacity expansion and backward integration to secure the supply chain. Management has previously indicated a pipeline target of approximately 20 DMF/CEP filings over two years to strengthen the product portfolio.
With a current price of ₹514.15 and a market capitalization exceeding ₹4,500 crore, the stock has shown strong momentum, gaining nearly 80% over the last year. The technical indicators show a Day RSI of 68.22, placing the stock near the overbought zone as it trades above its 200-day SMA of ₹390.84.
| Date | Announcement | Amount |
|---|---|---|
| 31 Jul 2026 | Q1 FY27 consolidated revenue from operationsSource: business-standard.com | ₹206.96 Cr |
| 22 May 2026 | Q4 FY26 consolidated revenue from operationsSource: smspharma.com | ₹237.95 Cr |
| 07 Feb 2026 | Q3 FY26 consolidated revenue from operationsSource: univest.in | ₹210.45 Cr |
| 08 Nov 2025 | Q2 FY26 consolidated revenue from operationsSource: scanx.trade | ₹242.40 Cr |
| 09 Aug 2025 | Q1 FY26 standalone revenue from operationsSource: smspharma.com | ₹196.05 Cr |
| 30 May 2025 | Q4 FY25 standalone revenue from operationsSource: smspharma.com | ₹248.20 Cr |
What to watch next
- Completion of the ₹280 crore capital expenditure programme by the end of FY27
- Execution of the 20 DMF/CEP and dossier pipeline filings over the next 12-18 months
- Next quarterly results announcement for the period ending December 31, 2026
| Share price | ₹514.15 |
|---|---|
| Market capitalisation | ₹4,558.04 Cr |
| Revenue (annual) | ₹886.87 Cr |
| Net profit (annual) | ₹101.99 Cr |
| Revenue (latest quarter) | ₹206.96 Cr-13.02% vs previous quarter |
| Net profit (latest quarter) | ₹20.91 Cr-36.09% vs previous quarter |
| P/E (TTM) | 44.51×Sector 41.34× |
| Promoter holding | 68.07%0.00% QoQ |
| FII holding | 1.18%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by SMS Pharmaceuticals Limited announcing un-audited financial results for the quarter and half-year ended September 30, 2026. Market figures from a third-party data provider.
