1. Ibuprofen resolution - The strategic review is on track for conclusion by H1 FY27, with management "fairly confident" of an optimum solution and clarity at Q2 results. The business burns ₹10-15 cr of EBITDA per quarter and holds \~₹700 cr of capital - resolving it removes the largest drag on consolidated earnings and frees that capital for the base business.
2. Base business growth - Q1 FY27 base revenue hit ₹307 cr, up 24% YoY, crossing ₹300 cr for the second straight quarter and described as a "new plateau". Management guides at least 10% sustainable growth with 25%±1% EBITDA margins - at \~70% capacity utilization across three sites, incremental volumes drop through at high margins without major capex.
3. Debottlenecking capex - FY27 committed capex is ₹55-60 cr, with \~₹40 cr of incremental debottlenecking spend targeting 20-30% capacity expansion on high-margin lines with 2-3 quarter payback. This converts existing 30% idle capacity into revenue at the company's best margin profile, funded within the current capex envelope.
4. Debt reduction - Net debt fell \~₹135 cr in Q1 FY27 to \~₹479 cr, with line of sight to \~₹440 cr by March 2027 and an internal target of debt-free by FY29. Interest coverage is 0.98x today - each ₹100 cr of debt retired cuts interest costs roughly in half against current EBITDA, flowing directly to PAT.
5. R&D engine revival - The first DMF in four years was filed in April 2026, with a plan for 4-5 filings annually and impactful revenues expected around FY29-FY30. This restarts a pipeline that had gone quiet - new filings target niche, higher-margin molecules that lift the portfolio mix beyond the current catalogue.
6. Regulatory wins - The Puducherry ibuprofen plant's US FDA inspection closed as VAI in April 2026, and Mangalore received a VAI classification in November 2025. Clean regulatory status protects access to regulated markets, which already constitute 75% of sales, and supports the base business's new-geography push.