Shilpa Medicare delivered exceptional Q1FY27 results with revenue rising 43% year-over-year to ₹469 crore, marking the company's highest-ever quarterly performance. According to reports from NDTV Profit, EBITDA increased 42% to ₹139 crore with a margin of 30%, while profit after tax more than doubled to ₹101 crore. The company has significantly improved its financial position by reducing its net debt-to-EBITDA ratio to 1.3x from 6.7x three years ago, providing greater flexibility for investments in newer business segments. The company expects limited capital expenditure over the next three years, while several recently commissioned manufacturing assets still have room to increase utilization.
The company's traditional API business remains the largest revenue contributor, with third-party API revenue increasing 15% year-over-year to ₹216 crore in Q1FY27, accounting for 47% of total revenue. As reported by NDTV Profit, Shilpa has added more than 15 molecules to its oncology API pipeline, targeting drug patent expiries through 2032, and is building a large solid-phase peptide synthesis facility in India with completion targeted for FY27. The company is also commissioning a dedicated oncology API manufacturing block in FY27 and increasing reactor capacity for products like UDCA and tranexamic acid. Shilpa supplies oncology and non-oncology APIs, specialty polymers and peptides to pharmaceutical manufacturers in more than 50 countries.
Finished formulations are emerging as a major growth driver, with revenue more than doubling to ₹198 crore in Q1FY27, accounting for 42% of total revenue. According to NDTV Profit, domestic formulation revenue rose 179% to ₹24 crore, supported by Noduca, the company's non-alcoholic fatty liver disease product, while European formulation revenue increased 84% to ₹57 crore, reaching an annual run rate of more than ₹200 crore. The US business generated ₹45 crore, supported by oncology injectables including Pemetrexed Ready-to-use and Bortezomib Ready-to-use.
The biologics and biosimilars segment showed strong growth with revenue rising 42% to ₹52 crore in Q1FY27, accounting for 11% of total revenue. As reported by NDTV Profit, Shilpa has added four biosimilar programmes to its pipeline: Nivolumab, Pembrolizumab, Daratumumab and Dupilumab, targeting large global therapeutic markets. The company is also working on two novel biological entity programmes with mAbTree Biologics and Alveolus Bio, with its first antibody-drug conjugate expected to enter first-in-human studies in FY27. The CDMO business has more than 25 active projects across small molecules, peptides and biologics, with the company securing two new late-stage projects with Japanese pharmaceutical companies in Q1FY27.
After achieving a 238% gain in stock price in 2026, the focus is shifting to whether Shilpa's diversification strategy can sustain earnings growth. According to NDTV Profit, return on capital employed increased to 12.5% in Q1FY27 from 8.8% in FY25, indicating improved operational efficiency. The company trades at 74x earnings, below Divi's Laboratories at 84x, Laurus at 100x and Sai Life Sciences at 93x. Key growth drivers include new oncology API capacity, higher volumes of UDCA and tranexamic acid, peptide manufacturing, US oncology injectables, European formulation launches and new CDMO contracts. However, risks include delays in clinical trials, pricing pressure from competition, higher raw material costs and slower-than-expected utilization increases at new facilities.
