Summary
CORONA Remedies Limited - Q3 FY26 Earnings Call Summary Tuesday, February 03, 2026 4:00 p.m. IST
Event Participants
Executives 5 Ankur Mehta (Joint Managing Director), Bhavin Bhagat (CFO), Nirav Mehta (MD & CEO), Tejas Kothari (VP - Corporate Strategy & BD), Vijay Charlu (President - India Business)
Analysts 5 Alankar Garude, Amey Chalke, Hrishit Jhaveri, Karan Sharma, Shubham Aggarwal
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹342 crores | +15% YoY; Driven by strong volume growth and new introductions in chronic segments. |
| EBITDA | ₹83 crores | +20% YoY; Outpaced revenue growth due to operating leverage and cost discipline. |
| EBITDA Margin | 24.3% | +100 bps YoY; Improvement attributed to higher field force productivity and product mix. |
| Adjusted PAT | ₹56 crores | +24% YoY; Adjusted for one-time new Labor Code impact; in line with high-teen guidance. |
| 9M FY26 Revenue | ₹1,050 crores | +16% YoY; Tracking slightly ahead of the annual 15% growth guidance. |
| 9M FY26 EBITDA | ₹231 crores | +25% YoY; Margin for 9M stood at 22%, up +140 bps YoY. |
| 9M Adj. PAT | ₹154 crores | +31% YoY; Significantly outperforming the annual guidance of 20% growth. |
| Cash Position | ₹100 crores+ | Net cash surplus position; OCF to EBITDA conversion stands strong at 86%. |
| Return Ratios | 31% / 48% | Annualized ROE and ROCE respectively; reflects efficient capital allocation. |
Geographic & Segment Commentary
- Domestic (India): Contributes ~96% of total revenue. The company is the fastest-growing pharma entity among the top 30 in India for Q3 FY26, growing at 18.9% (secondary sales) vs. IPM growth of 9.6%.
- International: Currently ~4% of revenue. Recent EAEU GMP accreditation for the Gujarat facility enables entry into Russia, Kazakhstan, and three other markets; management targets a long-term mix of 10% international and 90% domestic.
- Chronic & Semi-Chronic: Accounts for 70%-72% of total revenue. Focus remains on specialist and super-specialist prescribers in cardio-diabetic, women’s healthcare, and urology segments.
Company-Specific & Strategic Commentary
- Bayer Portfolio Integration: Commercialization of acquired brands begins Q4 FY26 with Noklot Plus. Full trademark capitalization for the IVF portfolio (targeting 3,000 centers) is expected by Q1/Q2 FY27.
- Field Force Expansion: Added 600 medical representatives over the last three years (250 Cardio-metabolic, 250 Gynecology, 100 others). Management expects PCPM to improve as these new hires reach maturity.
- Product Innovation: Balanced growth mix of 5% Volume, 5% Price, and 5% New Introductions. Plans to launch 8-10 products annually, focusing on biosimilars (Denosumab, Recombinant FSH) and GLP-1 injectables.
- Manufacturing Capacity: Recently capitalized a 600 kg line, enhancing capacity by 40%. Management anticipates the need for a new manufacturing facility/block by FY28-FY29.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | ~15% YoY (FY26) | Driven by chronic segment focus and outperforming the IPM by 1.75x-2x. |
| PAT Growth | ~20% YoY (FY26) | Expected to sustain high-teen to 20% growth through margin expansion and scale. |
| GLP-1 Launch | March 2026 | Plans to launch Wyntide (Injectable) immediately upon patent expiry. |
| Long-term Mix | 90% Dom / 10% Int | Strategic intent to maintain India focus while selectively expanding in EAEU markets. |
Risks & Constraints
| Risk | Context |
|---|---|
| Operating Expenses | Heavy field force expansion (600 reps) has kept employee costs high as a % of revenue. While narrowing, margins remain lower than some 30%+ EBITDA peers during this gestation phase. |
| Seasonality | While chronic focus limits seasonality, Q4 typically sees higher marketing/distribution spend for new launches (e.g., GLP-1), which can cause 300-400 bps margin fluctuations. |
| Execution Risk | Performance relies on the successful scaling of the Bayer IVF portfolio and the transition of B2B international dossier approvals, which take 1-2 years to monetize. |
Q&A Highlights
Expansion & Margins
- Question: Why is the employee cost high compared to peers, and can margins reach 30%? (Shubham Aggarwal)
- Answer: High costs are due to deploying 600 reps in 3 years. As these reps mature and PCPM improves, margins will expand, though the immediate focus is a balanced 15% revenue and 20% PAT growth (Bhavin Bhagat).
Bayer Portfolio & IVF
- Question: How will the IVF portfolio be scaled? (Rahul Jeewani)
- Answer: A dedicated 46-person super-specialty team is targeting 3,000 IVF centers. Commercialization of the Noklot franchise starts Q4 FY26; IVF brands will follow in Q1/Q2 FY27 using Bayer’s technology and trademarks (Nirav Mehta).
Growth Drivers
- Question: What is the breakup of the 15% growth? (Karan Sharma)
- Answer: Growth is evenly split: ~5% volume, ~5% price, and ~5.5-6% from new product introductions (Nirav Mehta).
Manufacturing Strategy
- Question: What is the mix of in-house vs. outsourced manufacturing? (Sidharth Negandhi)
- Answer: Current ratio is 65% own manufacturing and 35% CDMO/CMO. The 40% capacity expansion from the new 600 kg line suffices for now, but a new plant will be planned for FY28-29 (Nirav Mehta).
Key Takeaway
CORONA Remedies delivered a robust Q3 FY26, maintaining its position as the fastest-growing company among India’s top 30 pharma players with 18.9% secondary sales growth. The company reported a 15% YoY revenue increase to ₹342 crores and a 24% increase in adjusted PAT, supported by a strong EBITDA margin of 24.3%. Strategic focus remains on the chronic and semi-chronic segments (72% of revenue) and the integration of the Bayer brand portfolio, particularly in the IVF and anti-platelet markets. Management is leveraging a recently expanded field force of 600 reps to drive volume and new introduction growth, which currently contribute 10-11% of the total 15% growth. With a net cash surplus and 86% OCF/EBITDA conversion, the company is well-positioned for its upcoming GLP-1 launch in March 2026. CORONA remains on track to meet its annual guidance of 15% revenue and 20% PAT growth while targeting gradual margin improvement through operational leverage.
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