Supriya Lifescience Ltd reported a 42% year-on-year decline in consolidated profit after tax (PAT) to ₹29.25 crore for the second quarter of FY27, compared with ₹50.43 crore in the corresponding quarter of the previous financial year, as higher operating costs, product mix changes and elevated raw material prices weighed on margins.
Revenue from operations, however, grew 3.2% to ₹206.30 crore in Q2 FY27 from ₹199.83 crore a year earlier.
EBITDA declined 37.5% to ₹45.40 crore from ₹72.65 crore, while the EBITDA margin contracted to 22% from 36.4%. The PAT margin also fell sharply to 14.2% from 25.2%.
Product mix and higher costs weigh on margins
The Mumbai-based active pharmaceutical ingredients (API) manufacturer attributed the margin pressure to regulatory changes in the Latin American (LATAM) market, higher operating expenses at its Ambernath facility and elevated raw material and solvent prices amid geopolitical tensions.
Regulatory changes in LATAM affected demand for some of its higher-margin products, resulting in a shift in the company’s product and geographical sales mix. A higher proportion of sales came from semi-regulated markets during the quarter.
The Ambernath facility, meanwhile, continued to incur higher operating expenses as it remained in the ramp-up phase. The company expects better cost absorption and improved operating leverage as commercial production and sales from the facility scale up.
Elevated raw material and solvent prices, partly attributed to the ongoing war and geopolitical tensions, also affected profitability.
Ambernath facility expands product capabilities
Supriya Lifescience launched two new anaesthetic liquid inhalation products from its Ambernath facility during the quarter. The company expects to scale up these products over the coming quarters.
It is also progressing with plans to launch approximately two products in the attention deficit hyperactivity disorder (ADHD) segment during FY27. Its existing ADHD product continues to gain traction, supported by demand from LATAM and European markets.
The Ambernath facility has commissioned finished dosage manufacturing capabilities across tablets, capsules, liquids, nasal, inhalation and injectable formulations. Commercial manufacturing has commenced, and the company has received an exhibit batch order for Rest of the World markets.
Validation and registration batches are also underway for regulatory dossier submissions. An EU audit of the facility is scheduled for November 2026.
Manufacturing capacity utilisation at 73%
Supriya Lifescience operates five manufacturing blocks with a combined reactor capacity of 932 KLPD across a manufacturing area of approximately 35,000 sq metres. Capacity utilisation stood at 73% during the first half of FY27.
The company is continuing to invest in quality control laboratories, warehousing, research facilities and other supporting infrastructure to strengthen its manufacturing capabilities.
Its research and development operations are supported by a team of more than 68 scientists working on API and formulation process development. The company’s two R&D centres at Ambernath and Lote focus on new product development, formulation improvements and lifecycle enhancements.
With four process patents filed in India, Supriya Lifescience is targeting the addition of three to four products annually.
Focus on portfolio diversification
Supriya Lifescience Ltd Executive Chairman and Whole-Time Director Dr Satish Wagh said the quarter reflected continued revenue growth and progress in expanding the company’s product portfolio and manufacturing capabilities.
He said the launch of two anaesthetic liquid inhalation products marked another step in strengthening its finished dosage capabilities.
The company will focus on scaling up new products, expanding its presence across therapeutic segments and strengthening its research and manufacturing infrastructure.
Founded in 1987 and headquartered in Mumbai, Supriya Lifescience manufactures active pharmaceutical ingredients and operates globally compliant manufacturing facilities. Its regulatory credentials include certifications and approvals from Health Canada, EU GMP, EDQM, USFDA and NMPA, alongside eight active Certificates of Suitability (CEPs) and 14 active US Drug Master Files (USDMFs)