According to India Ratings & Research, Shilpa Medicare has completed a significant investment cycle, spending over ₹800 crore on R&D expenses during FY21-FY25, alongside capex of over ₹1,200 crore. The company maintains an 8 percent annual revenue allocation to R&D activities, representing one of the highest investment rates in the pharmaceutical sector. As reported by India Ratings & Research, FY26 capital expenditure stood at ₹361 crore, primarily directed towards API, CDMO and recombinant albumin facilities, with future investments planned to be funded through internal accruals.
The strategic pivot is demonstrating strong financial returns, with formulation revenue surging 74 percent to ₹498 crore and biologics revenue more than doubling to ₹151 crore in FY26. According to brokerage reports, consolidated revenue rose nearly 20 percent to ₹1,538 crore, while EBITDA jumped 37 percent to ₹434 crore, lifting EBITDA margins to 28.2 percent from 24.6 percent year-on-year. The company's transformation from a niche oncology API manufacturer to a specialty pharmaceutical and biologics company focused on biosimilars, complex formulations, and novel drugs is now entering the monetisation phase after years of heavy R&D and manufacturing infrastructure investments.
The company has built a robust pipeline with three US-focused new chemical entity (NCE) programs, including one commercialised in FY26, another in Phase III studies, and a third developed with Unicycive Therapeutics awaiting approval in FY27. As reported by brokerage firms, Shilpa Medicare has added more than 50 oncology molecules targeting blockbuster drugs losing patent protection through 2032. The formulations business is strengthened by products such as NorUDCA, Rotigotine transdermal patch, and Abraxane, with NorUDCA already showing "steep quarter-on-quarter growth" since its India launch in FY26.
The company is advancing biosimilars including Adalimumab, Aflibercept, and Nivolumab while developing new biological entities. According to reports, the recombinant human albumin program has entered late-stage development with global Phase III studies approved and commercialisation planned over the next few years. Shilpa Medicare has strategically chosen collaborations over acquisitions, partnering with mAbTree Biologics and Alveolus Bio for its novel biologics pipeline, while expanding its ADC platform with integrated capabilities. The first fully integrated ADC biosimilar has completed development, positioning the company for future growth in specialized pharmaceutical segments.
Brokerage houses believe the transition has entered the monetisation phase after years of heavy R&D and manufacturing investments. As reported by DAM Capital, the company's revenue and EBITDA are projected to grow to ₹1,818 crore and ₹556 crore, respectively, in FY27, with EBITDA margins expanding to 30.6 percent. The company acknowledges the transition is far from complete, having exited low-margin products like Azacitidine in the US and prioritising "super specialty products." Management expects potential Phase 3 data announcement on recombinant albumin in liver disease to be a key milestone this year, which could be transformative for long-term growth prospects.
