Symbiotec Pharmalab targets 20-25% revenue and EBITDA growth by FY27. The company saw a slow first quarter but expects commercial milestones in the second half to help. A new ₹400 crore biotech vertical will start generating revenue by the fourth quarter. Chairman Anil Satwani said, "These are all procedural observations."
The pharmaceutical company expects large commercial milestones in the second half to offset first-quarter margin drags, while a new ₹400 crore biotech vertical is set to begin generating revenue by the fourth quarter.
Symbiotec Pharmalab expects to end the 2026-27 (FY27) with 20-25% consolidated growth in both revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) , driven by commercial milestones in the second half that will offset recent margin drags, according to Chairman and Managing Director Anil Satwani.
The company reported a sluggish 7.4% revenue growth for the first quarter, down from the 15-16% clocked last year. Satwani attributed the slowdown to operational expenses and depreciation kicking in from two new businesses where the company has invested heavily in recent years.
Despite the consolidated drag, the core active pharmaceutical ingredient (API) business -- which accounts for more than 90% of revenues -- remains "rock solid," delivering high single-digit growth and maintaining EBITDA margins close to 30%.
Satwani noted that large, multi-million dollar commercial milestones in the second half will offset the drag seen in the first two quarters, April-June quarter of 2026 (Q1FY27), July-September quarter of 2026 (Q2FY27), making the remaining two quarter of the year look much better.
A major growth trigger for the company is its new biotechnology contract manufacturing (CMO) and contract development and manufacturing organisation (CDMO) vertical. Symbiotec has invested over ₹400 crore in large-scale, fermentation-led facilities based on synthetic biology. The gestation period for this investment is nearly complete, with initial revenues expected in the fourth quarter before scaling up significantly next year.
Satwani expects the new biotech vertical to match industry-standard gross margins of over 70% and EBITDA margins above 35% for complex fermentation opportunities. With an anticipated asset turnover ratio greater than one, the ₹400 crore capital expenditure is projected to generate ₹300-400 crore in revenue over the next three years.
A fourth audit at the Pithampur plant last month resulted in four observations. "These are all procedural observation," Satwani said. "We remain absolutely confident to receive our EIR in the next 2 to 3 months."