Summary
Curis Lifesciences Limited - Q3 FY2026 Earnings Call Summary Thursday, January 22, 2026, 12:00 PM
Event Participants
Executives 3 Jaimik Patel (Whole-Time Director), Piyush Antala (Whole-Time Director), Pragnesh Sharma (Chief Financial Officer)
Analysts N/A (Questions were submitted via chat box through a moderator)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (H1 FY26) | ₹27.91 crores | On track to exceed FY25; driven by shift toward merchant exports. |
| Revenue (FY25) | ₹50.26 crores | +40.9% YoY; growth supported by increased registration of high-margin molecules. |
| EBITDA Margin (H1 FY26) | 21.46% | Consistent with FY25 levels; reflects transition from job work to contract manufacturing. |
| PAT Margin (H1 FY26) | 15.09% | +274 bps vs FY25; improved due to higher utilization of export-ready dossiers. |
| EBITDA (FY25) | ₹10.05 crores | +14.7% YoY; margins normalized at 21.4% following the FY24 spike. |
| PAT (FY25) | ₹6.21 crores | +11.5% YoY; profitability improved as merchant export registrations matured. |
| Capacity Utilization | ~100% (Potential) | Current infrastructure can reach 100% utilization within one year with new IPO working capital. |
Geographic & Segment Commentary
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Nigeria: The largest strategic focus for international growth. Curis is finalizing a JV with Eurosun Pharmaceuticals to launch 10 own-brand products. The company expects the registration window to open in February 2026, with revenue contribution scaling significantly by FY28.
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Kenya & Yemen: Currently contributing small revenue through 12 export-ready products (9 in Yemen, 3 in Kenya). While Yemen remains volatile due to geopolitical conflict, Kenya is targeted for secondary own-brand expansion following the Nigeria rollout.
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Domestic Manufacturing: Operations include loan licensing (job work) and contract manufacturing for majors like JB Chemicals. Management is strategically phasing out low-margin loan licensing to free up capacity for higher-margin own-brand exports.
Company-Specific & Strategic Commentary
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Business Model Transition: Curis is moving from low-margin job work (10-15% EBITDA) to own-brand marketing, which yields substantially higher margins. This transition relies on the 1,200+ formulations already developed in-house.
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Nigeria Joint Venture: Partnering with Eurosun Pharmaceuticals to mitigate market entry risks. Curis provides manufacturing and dossiers, while Eurosun manages local distribution and regulatory navigation.
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Working Capital Deployment: Following the November 2025 IPO, the company is using proceeds to fund a 90-100 day inventory and manufacturing cycle, previously restricted by capital constraints.
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Product Niche: Focus on sterile ophthalmic ointments, a unique category for African markets where thick-skin ocular conditions prefer ointments over drops. This provides a competitive edge over larger multinationals focused on Western standards.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Own-Brand Revenue | 5% to 7% of total revenue by FY27 | Driven by the migration of merchant export brands to the Curis brand name. |
| EBITDA Margin | +200 bps (approx. 22%) by FY28 | Projected increase as high-margin own-brand products begin commercial sales. |
| Long-term Mix | 80% Own-Brand / 20% Merchant & Domestic | 3–5 year target to maximize profitability and asset utilization. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Delays | Product registration in Africa takes 12-18 months and costs ~$5,000 per product. Delays in “registration windows” or NAFDAC audits can postpone revenue. |
| Geopolitical Risk | Yemen operations, comprising 9 of 12 current export-ready products, are frequently interrupted by regional warfare and logistical blockades. |
| Execution Risk | Transitioning from manufacturing to marketing requires a significant shift in organizational capability and higher upfront investment in foreign countries. |
Q&A Highlights
International Expansion
- Question: How does the Eurosun partnership strengthen the Nigerian presence? (Moderator)
- Answer: Eurosun has 5+ years of local experience. They provide market intelligence on product selection and pricing, while Curis manages the formulation and registration costs. (Jaimik Patel)
Profitability & Margins
- Question: When will the shift to own-brand exports impact the bottom line? (Moderator)
- Answer: Registration takes time. While H1 FY26 margins are stable at 21%, a material jump of ~200 bps in EBITDA is expected by FY28 after own-brand registrations are finalized. (Jaimik Patel)
Capacity & Utilization
- Question: How will you reach 80%+ utilization without new Capex? (Moderator)
- Answer: The Sanand facility is already fully equipped. The bottleneck was working capital for raw materials, which the IPO has now resolved. We are phasing out low-margin job work to fill that capacity with export orders. (Jaimik Patel)
Key Takeaway
Curis Lifesciences is executing a multi-year strategic pivot from a domestic contract manufacturer to a brand-led pharmaceutical exporter. In FY25, the company reported a turnover of ₹50.26 crores with a strong EBITDA margin of 21.4%, supported by a library of 1,200 formulations. The management is currently utilizing IPO proceeds to resolve working capital constraints, aiming to hit near-total capacity utilization by phasing out low-margin “job work” in favor of merchant exports. A critical joint venture in Nigeria with Eurosun Pharmaceuticals serves as the cornerstone for their “own-brand” strategy, with 10 products slated for registration in early 2026. While significant own-brand revenue is not expected until FY28 due to lengthy regulatory timelines, the transition is projected to expand EBITDA margins to approximately 22% and beyond. Investors should monitor the progress of NAFDAC registrations in Nigeria and the company’s ability to maintain domestic relationships during this export-heavy shift.
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