Analysts/Institutional Investor Meet/Con. Call Updates

Date: 10th November, 2026 The Manager, The Manager, Corporate Filings Department, Listing Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai - 400 051. Security Code: 532815 Symbol: SMSPHARMA Dear Sir/Madam, Sub: Transcript of the Conference Call held on 5th November, 2026. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find the attached transcript of the Conference Call held on Thursday, 5th November, 2026 for the second quarter and half year ended 30th September, 2026. A copy of the said Transcript is being uploaded on the website of the Company www.smspharma.com Kindly take the same on record and disseminate on your website. Thanking you Yours Faithfully For SMS Pharmaceuticals Limited Ramesh Babu Potluri Chairman & Managing Director DIN: 00166381 “SMS Pharmaceuticals Limited Q2 & H1 FY27 Earnings Conference Call” November 05, 2026 Disclaimer: E&OE - This transcript has been edited for clarity. In case of discrepancy, the audio recordings uploaded to the stock exchanges on 5 November 2026 will prevail. MANAGEMENT: MR. VAMSI KRISHNA POTLURI – EXECUTIVE DIRECTOR – SMS PHARMACEUTICALS LIMITED MR. LAKSHMI NARAYANA TAMMINEEDI – CHIEF FINANCIAL OFFICER – SMS PHARMACEUTICALS LIMITED MR. MANOHAR MOLLAMA – COMPANY SECRETARY AND COMPLIANCE OFFICER – SMS PHARMACEUTICALS LIMITED Page 1 of 13 SMS Pharmaceuticals Limited November 05, 2026 Moderator: Ladies and gentlemen, good afternoon and welcome to SMS Pharmaceuticals Limited Q2 and H1 FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Also today, we have with us Mr. Vamsi Krishna Potluri, Executive Director; Mr. Lakshmi Narayana Tammineedi, Chief Financial Officer and Mr. Manohar Mollama, Company Secretary and Compliance Officer. I now hand the conference over to Mr. Vamsi Krishna Potluri, Executive Director. Thank you, and over to you, sir. Vamsi Krishna Potluri: Hello. Good afternoon, everyone and thank you for joining us today. Detailed press release and investor presentations have been uploaded on the stock exchange and our website. We maintained our growth momentum in Q2 FY27 and delivered a strong operational and financial performance. Revenue grew 30% year-on-year to INR316 crores. This was driven by higher volumes, improved price realization and continued growth across our product portfolio. Backward integration gives us a structural cost advantage, not a temporary pricing benefit. And this quarter shows that clearly. It reflects 5 years of investments in backward integration and capacity building. And we will keep investing in backward integration across our core portfolio. Let me now take you through the key financial highlights. In Q2 FY27, revenue from operations stood at INR316 crores, a growth of 30% over Q2 FY26 and 53% over Q1, driven by strong volumes and improving price realization. Gross profit, including manufacturing expenses, rose 41% to INR111 crores and gross margin expanded to 35%. EBITDA stood at INR68 crores, a growth of 40% with margins expanding 145 basis points to 21%, aided by operating leverage. PAT grew 57% to INR39.6 crores, a PAT margin of approximately 13%. The trend over the last three quarters is clear. The gross margin has moved from 34% in Q4 FY26 to 36% in Q1 and 35% this quarter. This was slightly below Q1, but well above the 32% a year ago, driven by backward integration. EBITDA margins have moved from 17% to 20% and now 21% driven by operating leverage. For H1 FY27, revenue grew 19% to INR523 crores. EBITDA grew 24% to INR109 crores, a margin of 21%. PAT grew 36% to INR 59.8 crores. Including our share of VKT profit, net profit grew 33% to INR60.8 crores. Moving to our performance by therapeutic area. Our growth this half was broad-based. ARV and anti-inflammatory led the way. In first half, ARVs grew 47% to INR150 crores on market Page 2 of 13 SMS Pharmaceuticals Limited November 05, 2026 share gains and anti-inflammatory grew 25% to INR110 crores on ibuprofen demand from regulated markets. Our other therapeutic areas also contributed. Anti-migraine grew 32%, anti-epileptic 44%, anti-anginal 45% and anti-ED 52%. Across the portfolio, high-value APIs continue to climb as a share of our revenue to 49% in the first half from 47% in FY26. We are growing our market share in products where economies of scale and backward integration give us a structural advantage. I will now share some key updates on our business. Starting with R&D, our team has over 200 professionals and has completed 19 DMF and CEP filings over the last 24 months. We continued that momentum into this quarter. So far we have completed 6 filings, 4 in the first half and 2 more in October, well on track for our FY27 target of 10. They cover anti-ulcer, anti-migraine, antidepressant, antifungal and antifibrotic APIs. As a result of these APIs, we now expect 6 to 8 new molecules to start commercial production in FY28. As they scale up over the following six quarters, we expect them to be EBITDA accretive and to diversify our revenue. On ibuprofen, we expect to complete our remaining capex in the coming quarters. This will take our total capacity to 9,600 tons a year and the volumes will ramp up gradually over the next few quarters. Turning to our capex program, we have deployed INR160 crores of the INR280 crores program so far and the program remains on track for completion by FY27. It adds capacity for few of our existing molecules and for the 6 to 8 new molecules in our pipeline. Coming to peptides and CDMO, we have set up SMS Peptides Private Limited, a 99.9% owned subsidiary to build a dedicated peptide business. Its peptides R&D facility is now fully operational. To support its expansion, the Board recently approved a loan of INR50 crores to the subsidiary. Pilot scale production is targeted for Q4 FY27 and we expect our first CRO revenue from it in Q2 FY28. We have also set up SMS coLab Private Limited, a wholly owned subsidiary which will serve as a dedicated CDMO platform for APIs and peptides. Finally, let me turn to our outlook. For FY27, guidance was revenue growth of 15% with an EBITDA margin of 20%. With pricing in our key APIs expected to remain stable in the near term and on the back of a strong first half and the outlook for the rest of the year, we now expect to exceed both. Thank you. With this, I would request the moderator to open the lines for any Q&A. Moderator: Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Nirali Shah from Ashika Investment Managers. Nirali Shah: Firstly, congratulations on the great set of numbers. I have a couple of questions. Firstly, on the peptide side. What kind of customer engagement are we seeing at this stage? And what would need to happen for peptides to become a really meaningful revenue contributor say, over the next 2 to 3 years? Page 3 of 13 SMS Pharmaceuticals Limited November 05, 2026 Vamsi Krishna Potluri: Thank you for your question. So right now, peptides, we are evaluating 2 opportunities, 2 legs right now. So the first one would be generic peptides. So that -- so there are different types of peptides that we've selected. Some range from GLPs t [Showing first 8,000 characters — download PDF for full document]