Press Release

Date: 01st August, 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: Press release on Financial Results Please find enclosed the press release on the Financial Results for the quarter ended 30th June, 2026. This press release may also be accessed on the website of the Company at www.smspharma.com Kindly take the same on record and disseminate on your website. Thanking you Yours Faithfully For SMS Pharmaceuticals Limited Thirumalesh Tumma Company Secretary August 01, 2026 Consistent broad-based growth across high-value APIs  Revenue up 6% YoY, driven by diversified growth across high-value APIs  Gross margin remained above 45%, reflec(cid:415)ng structural improvement in unit economics  EBITDA margin sustained at ~20%; PAT up 8% YoY  Completed 4 DMF/CEP filings; on track to meet FY27 target of 10 DMF/CEP filings  ₹280 crore capex programme progressing as planned; expected to be completed by FY27  Board approves infusion of up to ₹50 crore, as a loan, into subsidiary SMS Pep(cid:415)des Private Limited; building on the ₹8 crore investment made in FY26 to establish its dedicated pep(cid:415)de R&D facility  R&D team strength increased to 200, suppor(cid:415)ng the development pipeline of niche and high-value APIs and pep(cid:415)des SMS Pharmaceu(cid:415)cals Limited (SMS Pharma) (NSE: SMSPHARMA; BSE:532815), a diversified and integrated pharmaceu(cid:415)cal company specialising in Ac(cid:415)ve Pharmaceu(cid:415)cal Ingredients (API) and complex Intermediates for global customers, has announced its unaudited financial results for the quarter ended June 30, 2026. Commen(cid:415)ng on the performance, Mr. P. Vamsi Krishna, Execu(cid:415)ve Director, stated: “We have started FY27 on a healthy note with broad-based growth across our high-value API portfolio while maintaining EBITDA margins at around 20%. During the quarter, we continued to benefit from backward integration and an improving product mix, which supported consistently healthy gross margins and reinforced the structural improvement in our unit economics. While our structural margin profile continues to improve, EBITDA margins during the quarter were impacted by annual employee increments, reflecting our continued investment in expanding our organisational capabilities and manpower in line with our short- and long-term growth strategy. Elevated freight costs arising from the geopolitical situation in West Asia also impacted EBITDA margins during the quarter. We expect these temporary headwinds to ease in the near future, providing further support to margin expansion alongside the continued benefits of backward integration and an improving product mix. On the R&D front, we completed 4 DMF and CEP filings during the quarter, keeping us on track to achieve our FY27 target of 10 DMF/CEP filings. Our R&D team has developed a pipeline of 6 to 8 niche and high-value molecules, which are expected to enter commercial production towards the end of this financial year. In parallel, we are allocating additional capital of ₹50 crore to our peptide CDMO platform, in line with our strategy of building a differentiated portfolio of niche, high-value products. Our ₹280 crore Capex programme is progressing as planned. Of the total outlay, ₹120 crore has been completed, with the remaining ₹160 crore expected to be completed by FY27. This will support the commercialisation of new niche and high-value molecules. Looking ahead, we expect growth momentum to strengthen over the remaining quarters of FY27. Our ARV portfolio will continue to expand with the commercialisation of new molecules, while Ibuprofen is well positioned to deliver strong volume growth supported by improving realisations/margins. In addition, increasing contributions from high-value APIs and new product launches are expected to further support revenue growth. With a diversified portfolio, robust product pipeline and ongoing capacity expansion, we remain confident of delivering our FY27 growth guidance while sustaining EBITDA margins of 20%.” Summary of financial performance (₹ Cr) YoY QoQ YoY Growth Growth Growth Particulars Q1FY27 Q1FY26 (%) Q4FY26 (%) FY26 FY25 (%) Revenue from 207.0 196.1 6% 237.95 -13% 886.87 782.75 13% operations Gross profit (Incl. manufacturing 74.9 66.7 12% 81.29 -8% 302.83 264.70 14% expenses) Gross profit margin 36% 34% 217bps 34% 204bps 34% 34% 33bps EBITDA 40.95 39.37 4% 39.90 3% 171 139 23% EBITDA margin 20% 20% -30bps 17% 302bps 19% 18% 155bps PAT 20.20 18.72 8% 20.96 -4% 88 67 31% PAT margin 10% 10% 21bps 9% 95bps 10% 9% 131bps PAT a(cid:332)er share of 20.91 20.50 2% 32.71 -36% 102 69 47% associate profit/loss EPS 2.23 2.31 -3% 3.58 -38% 11.15 8.16 37% Revenue by therapeutic area (₹ Cr) Q1FY27 Q1FY26 Particulars As % of total As % of total YoY Growth Revenue revenue Revenue revenue (% ) Anti-diabetic 20.08 10% 65.16 33% -69% Anti Retro Viral (ARV) 65.22 32% 38.48 20% 69% Anti-inflammatory 46.91 23% 45.25 23% 4% Anti-migraine 24.79 12% 17.21 9% 44% Anti-ulcer 10.11 5% 11.24 6% -10% Anti-erectile dysfunction 9.87 5% 2.73 1% 262% Anti-epileptic 11.61 6% 7.70 4% 51% Anti-anginal 11.88 6% 5.18 3% 129% Others 6.49 3% 3.10 2% 109% Performance review Revenue from operations in Q1FY27 was ₹207.0 crore, up 6% YoY, driven by broad-based growth across high-value APIs. Strong growth in the ARV portfolio was supported by continued market share gains, while Ibuprofen continued to witness healthy demand from regulated markets. Growth was further supported by growing contribution from high-value APIs, reflecting the Company's continued focus on portfolio diversification. Gross profit (Incl. manufacturing expenses) increased 12% YoY to ₹74.9 crore, with gross margin expanding 217 bps YoY to 36%, reflecting the benefits of backward integration and an improving product mix. EBITDA increased 4% YoY to ₹40.95 crore, while EBITDA margin remained healthy at 20%. PAT increased 8% YoY to ₹20.20 crore, with PAT margin remaining stable at 10%. The share of profit from our associate company, VKT Pharma Private Limited, stood at ₹0.71 crore during the quarter. Consequently, Net profit after tax and share of profit from associate was ₹20.91 crore. Project update Our ₹280 crore Capex programme is progressing as planned. Of the total outlay, ₹120 crore has been completed, with the remaining ₹160 crore expected to be completed by FY27. This will support the commercialisation of new niche and high-value molecules. Outlook We are on track to deliver our FY27 growth guidance with EBITDA margins of 20%. Growth will be supported by the completion of our capacity expansion programme, enabling the commercialisation of new niche and high-value molecules, alongside volume growth across our expanded ARV portfolio and anti-inflammatory products. About SMS Pharmaceuticals Limited Established in 1990, SMS Pharmaceuticals Limited is a diversified and integrated pharmaceutical company specialising in API and intermediates. The Company operates two state-of-the-art manufacturing facilities in Hyderabad and Vizag, with capacities of 200 KL and 3,000 KL, respectively. Supported by strong in-house R&D capabilities, the Company has a proven track record of delivering quality products across a diversified portfolio of therapeutic segments, serving as a trusted partner to a global customer base in over 70 countries. DISCLAIMER This press release contains forward-looking statements that are subject to risks and uncertain(cid:415)es. Actual results may differ materially from those expressed or implied. SMS Pharmaceu(cid:415)cals Limited undertakes no obliga(cid:415)on to update these statements to reflect subsequent events or circumstances. For any further informa [Showing first 8,000 characters — download PDF for full document]