Sanjivani Paranteral Ltd Q2 FY2026 Concall Summary

Key Takeaways

• Revenue hit by export disruptions, not demand: Revenue fell 14.5% YoY as Nepal unrest, LatAm regulatory tightening, and MENA approval delays blocked shipments; held-back inventory of INR6 crores+ has already been dispatched.
• Injectable business held ground while oral slumped: Injectable revenues grew 2.4% YoY to INR9.3 crores, but oral revenues dropped 35.4%, dragging the topline and compressing EBITDA margin to 15.5%.
• SPL Infusion JV goes live this quarter: All regulatory approvals are in, commercial batches have started, and revenue booking begins in Q3 FY26; full-year capacity can deliver INR90–110 crores at margins slightly better than base business.
• Regulatory disruption is a filter, not a permanent barrier: LatAm regulators tightened scrutiny on all Indian manufacturers after quality issues at unrelated exporters; Sanjivani's 10-year clean inspection record positions it to gain once the reset passes.
• What to watch next quarter: Whether SPL Infusion revenue ramps on schedule, whether held-back LatAm shipments clear without further delays, and whether the oral business stabilizes after the 35% drop.

Export Disruptions: What Broke and What Is Already Fixed

• Nepal unrest blocked INR1 crore in orders: Local unrest prevented execution of export orders worth nearly INR1 crore; management called the loss difficult to quantify fully but cited this as one discrete hit.
• LatAm regulatory freeze hit hardest: Quality concerns raised against unrelated Indian exporters led Latin American regulators to tighten scrutiny on all suppliers; distributors held further distribution, and Sanjivani stopped supply rather than risk shipments being rejected or destroyed.
• MENA approvals slipped into next quarter: A few MENA markets faced delays in obtaining required product approvals, shifting shipments to Q3.
• Inventory held, not lost: INR6 crores-plus of export consignments were held back because returning stock would mean writing it off; those shipments have already been dispatched and are on the way.
• Q3 already tracking above last year: Q3 will be better than last year's Q3 of ~INR17.5 crores, with held-back shipments moving and a strong order book as competitors face their own inspection pressures.

Ashwani Khemka: "Generally, when you export the consignment to those countries, they're not clear to neither the country take the responsibility and bringing back is just a waste of the stock and it goes in the drain. So, we holded the stock here very clearly."

SPL Infusion Plant: The Near-Term Growth Engine

• Revenue booking starts Q3 FY26: All regulatory approvals are in place, commercial batches have started, and the plant will begin contributing this quarter, with Q4 bringing substantially good volume.
• Full-year revenue potential of INR90–110 crores: Once at optimal capacity, expected by Q2 FY27, the plant can generate INR90–110 crores annually at margins similar to or slightly better than the base business.
• Order book spans government, open market, and exports: Orders come from semi-government and government institutions via Hindustan Antibiotics Limited, the open market, and exports to 3–4 geographies where Sanjivani has been present for 10–15 years; management declined to quantify the order book.
• Strategic location advantage: The plant sits in Maharashtra where, per management, no other IV plants are currently operating.

Ashwani Khemka: "See, this plant is in a strategic location in Maharashtra and in Maharashtra there are no IV plants are currently working."

Regulatory Moat: Short-Term Pain, Long-Term Filter

• LatAm scrutiny is a market-wide reset: In the last 4–5 months, many Indian companies were inspected and reinspected; discrepancies were found and alerted to the Indian government, causing distributors to freeze distribution. This benefits quality-driven companies once the reset passes, but near-term approvals and compliance requirements will stay elevated.
• Ten-year clean track record: The plant has been inspected 3–4 times with no single failure or market complaint anywhere in the world in the last 10 years.
• Revised Schedule M extension is only 2 months: The guideline deadline was extended from December '25 by just 2 months; most companies are fighting to survive under the revised guidelines, which management frames as a competitive advantage for compliant players.
• IV price revisions implemented: Government of India proposals for IV price increases have been implemented and prices revised, supporting the injectables business.

Ashwani Khemka: "And for the last 10 years, we have not a single failure or a single market complaints in the world."

Alevia Healthcare (Prague JV): Early Revenue, Longer Cycle

• Revenue booking has started: Small orders have been executed and more are in process, with orders expected to be completed by February; full-year numbers should show healthy figures.
• Sales turnaround cycle is structurally longer: Product goes from India, gets packed in Prague, then sold further, stretching the cycle; the company is maintaining flexibility, including potentially closing deals from European suppliers if the end buyer offers premium pricing.
• FY27 minimum target of INR3–3.5 crores: Management committed to a minimum of 100% growth from the FY26 number, calling it a floor with potential to go "way up north."
• French Africa registrations in process: Samples have been shipped to Cameroon and Mali; unrest in both countries caused regulatory body shutdowns, but samples will be submitted in January with registrations expected roughly 6 months from that.

Srivardhan Khemka: "It's honestly too early to say that, but a very healthy growth, definitely. A minimum of growth 100% from this number. So, minimum of INR3 crores to INR3.5 crores we should achieve in FY '27, it will go way up north as well."

Base Business: Injectables Steady, Orals Weak, Costs Falling

• Injectable vs oral divergence is stark: Injectable revenues grew 2.4% YoY to INR9.3 crores while oral revenues declined 35.4% to INR4.9 crores, driving the overall 14.5% revenue drop.
• Antibiotic exposure is limited: Antibiotic growth is down 8–10% post-COVID industry-wide, but Sanjivani's contribution from antibiotics is only 7–8%, insulating it from the broader trend.
• Employee costs falling through AI-driven modernization: Modernization in facilities, quantified and accelerated with AI, has reduced employee costs; management says this cost-effectiveness will continue to be visible.
• Risk mitigation through diversification: The company has diversified from single geography to multiple continents, from injectables only to more dosage forms, and is working with other partners in India for injectables.
• Base business growth target of 15–20% next year: Management expects the base business itself can grow 15–20% next year, above the minimum 10% floor set for the current year.

Ashwani Khemka: "We have done certain modernization in our facilities. And with the help of AI, we have quantified and work everything is the modernization is going on in a very high speed in the plant."

Guidance & Commitments

Key Metrics