Senores Pharmaceuticals Q3 FY26 Results: PAT up 105%, On-track FY26 Guidance

Doubling FY26 PAT with 50% growth in revenue. Guidance of 25-30% revenue CAGR & 20-30% PAT CAGR for next 3-5 years. Trading at reasonable forward valuations

Jan 20, 2026

1. Pharmaceutical Company

US Manufacturing:
US FDA and DEA-approved facility in Atlanta, US
Insulating them from tariff-related risks
Enabling them to cater to controlled substances and government contracts (BAA compliant)

2. FY25: PAT up 78% & Revenue up 91% YoY

3. Q3 FY26: PAT up 105% & Revenue up 64% YoY

PAT up 12% & Revenue up 8% QoQ

4. 9M FY26: PAT up 110% & Revenue up 65% YoY

5. Business Metrics: Reasonable Return Ratios

Funds from IPO in muted FY24 return ratios

6. Outlook: Doubling PAT in FY26

All in all, we have delivered a strong performance in the quarter and nine-months and remain on track to deliver on our full year guidance.

6.1 FY26 Guidance

FY26
We remain on track and confident of delivering at least 50% growth in top line and 100% growth in PAT for FY26 over FY25.
Margin — in the similar range what we have achieved in H1
FY27 Onwards
Revenue Growth: So post this year FY 27 I think sustainable growth on a CAGR basis should be between 25 and 30%. That is what we’ve targeted. I mean with a positive launches it this could well exceed but from our internal target perspective — at least 30% CAGR sustainable growth over over next 3 to 5 years is very much visible for us and which will continue to deliver. So that’s that’s what our internal targets have been
PAT Growth: 20 to 30% is what we are looking at from next year onwards
PAT as a percentage will improve by couple of hundred bips that’s what we are looking at

6.2 9M FY26 Performance vs FY26 Guidance

On-track FY26 guidance

Revenue: 9M revenue growth of 64%— on-track guidance of 50%+ revenue growth
PAT: 9M PAT growth of 110%— on-track guidance of 100%+ PAT growth
Profitability: Margin expansion in Q3 on YoY and QoQ basis
Cash Flow: Strong Performance on cash generation.

Cash Flow from Operations for Q3FY26 stood at ~Rs. 19 crs & for 9MFY26 it stood at ~Rs. 51 crs, significant growth over last year. Our EBITDA-to-Operating Cash Flow conversion has improved

7. Valuation Analysis — Senores Pharmaceuticals

7.1 Valuation Snapshot

Current Market Price — ₹801.5
Market cap ₹ — 3,691.20 Cr
Assumptions:
Revenue growth at 25% beyond FY26 — lower end of guidance
PAT growth in-line with revenue growth
Stable margins

Attractive Forward Valuations

FY27 valuations are not demanding — provide flexibility to sustain a quarter or two where performance is not as per guidance

Reasonably valued on FY26E and but attractive on FY27E, provided execution sustains with 20-30% CAGR and stable margins. Multiples leave room for re-rating if FY27 is delivered.

7.2 Opportunities at Current Valuation

Long runway for growth:
- The opportunity lies in the guidance of 20-30% revenue CAGR from FY27 onwards for the next 3-5 years.
- Forward projections are conservative — growth assumed at the lower end of the guidance
- Impact of sterile manufacturing facility not considered in the growth projections
Growth assumptions are strong but not extraordinary
- SENORES targets 25-30% growth for the next 3-5 years for the opportunity to play out.
- It is not a continuation of the exceptional 50% growth targeted in FY26
- Opportunity exists even if growth is at the lower end of the guidance
FY27 Valuation — P/E of 20× & EV/EBITDA of ~17×
- Implies that growth beyond FY26 has not been fully discounted.
- Potential for re-rating of multiple in FY27

8.3 Risks at Current Valuation

Execution Risk:
- While FY26 looks on track, delivering 25-30% for the next 3-5 years will require exceptionally consistent performance
- All strategic initiatives need to fall in place
Regulatory Dependence: Heavy reliance on USFDA/DEA compliance for Atlanta facility; any adverse inspection outcome is a material risk.
Concentration: ~65% of revenues from Regulated markets; while a strength, it also exposes SENORES to US generics pricing pressures and competitive intensity.