Strong Domestic Growth and …

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This article first appeared on GuruFocus.

  • Revenue Growth: 7.6% increase in Q2 FY26, reaching INR 181.7 crores from INR 168.9 crores in Q1 FY26.

  • EBITDA: Increased by 7.1% to INR 43.6 crores in Q2 FY26 from INR 40.7 crores in Q1 FY26, with an EBITDA margin of 24.0%.

  • Domestic Formulation Business Growth: 17.2% growth in Q2 FY26 over Q2 FY25, outpacing the Indian pharmaceutical market growth of 7.7%.

  • H1 Revenue Growth: 3.8% increase over H1 last year.

  • Net Cash Surplus: Approximately INR 223 crores, maintaining a debt-free status.

  • Naprosyn Brand Growth: 16% year-over-year growth in H1 FY26, on track to become the first INR 100 crore brand.

  • Immunosuppressant Portfolio Growth: 12% growth in H1 FY26.

  • API Business Contribution: 9% of total business, with recovery efforts following a fire incident.

  • Sales Force Productivity: INR 6.5 lakhs per rep per month, up from INR 6.1 lakhs last year.

  • Specialty Productivity: INR 17 lakh PCPM in Q2.

Release Date: October 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • RPG Life Sciences Ltd (BOM:532983) reported a robust growth of 17.2% in its domestic formulation business for Q2 FY26, significantly outpacing the Indian pharmaceutical market growth of 7.7%.

  • The company advanced its IPM ranking by 6 places, moving from 62 to 56, driven by volume expansion, strategic brand building, and disciplined execution.

  • RPG Life Sciences Ltd’s largest brand, Naprosyn, grew 16% year-over-year in H1 FY26 and is on track to become the company’s first INR100 crore brand.

  • The company remains debt-free with a high cash surplus of approximately INR223 crores, despite significant CapEx investments in modernizing and enhancing its plants.

  • RPG Life Sciences Ltd was recognized as the leading mid-corporate of India 2025 by Dun & Bradstreet, reflecting its strong operational and quality focus.

  • The company faced headwinds in its API business due to a fire incident at its factory in January, leading to a sales loss of INR16 crores.

  • Gross margin compression was noted, partially due to reliance on third-party suppliers and the inability to produce captive API following the fire incident.

  • RPG Life Sciences Ltd does not currently have any exposure to the U.S. market, which could limit its growth opportunities in one of the largest pharmaceutical markets.

  • There is ongoing margin pressure in the MABs (monoclonal antibodies) segment due to increased competition and price erosion.

  • Despite the company’s strong domestic performance, the international formulation business only grew by 7.0% in Q2, indicating slower growth compared to the domestic market.

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