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1 August 2025
Emcure Pharmaceuticals 1 August 2025
INDIA| HEALTHCARE |
COVERAGE INITIATION

Emcure Pharmaceuticals
On the comeback trail
Bounce-back of domestic business: Emcure's India business is
Established in 1981 by Satish Mehta, Emcure Pharmaceuticals
rebounding, targeting 10-12% growth over the next three years, after
has grown from a contract manufacturer into one of the top facing prior competition and restructuring. This recovery is driven by
15 pharmaceutical companies in India, with a significant improving volumes and the successful introduction of new products.
presence in international markets through both its listed Indian Specifically, Emcure has launched new offerings in women's healthcare,
entity and a privately held U.S.-focused arm. Unlike many of its covering menopause and PCOS. They are leveraging synergies from the
peers that rely heavily on acquisitions or operate across a broad Sanofi portfolio integration to enhance access to diabetes and cardiac
range of therapies, Emcure has pursued a focused strategy to care. The company has also strengthened its high-barrier cosmetic
date, building leadership in women's healthcare, oncology, and dermatology division with a new leadership hire. Future growth will be
cardiology. Going forward, the company is likely to expand into further supported by upcoming launches in GLP-1, ophthalmology,
diabetes, dermatology, CNS, and consumer wellness. Improved consumer wellness, and CNS.
volume growth in its existing portfolio and a higher International businesses on an upswing: Emcure's exports, comprising
contribution from new products are expected to help the 54% of total sales, are driven by Europe, Canada, and Emerging
company achieve early double-digit growth in India over FY25– Markets, established via strategic acquisitions. The company is
28E. Additionally, its consistent launch of innovative and leveraging its domestic portfolio and complex generics pipeline for
differentiated products in both Indian and export markets global expansion. Its export portfolio focuses on high-barrier, high-
could become a cornerstone of its success. As the Indian margin segments like complex injectables, biosimilars, recombinant
asparaginase, ADCs, liposomal Amphotericin B; coupled with ARV
pharmaceutical market transitions from mass-market generics
tender market. While Europe is projected for single-digit growth due to
to more specialty and novel therapies, we believe Emcure
maturity, Canada and Emerging Markets are expected to achieve strong
presents an attractive opportunity for investors seeking double-digit growth, propelled by differentiated products and ARV.
exposure to a mid-sized, India-focused player capable of
outpacing industry growth. We expect the company to deliver Improving fundamentals to drive profitable growth: Emcure, despite
13–14% organic revenue CAGR over FY25–28, driven by recent underperformance, is positioned for strong growth over the next
2-3 years, projected at 13% for revenue, 21% for EBITDA, and 29% for
strong domestic and export performance, with annual margin
PAT, driven by domestic recovery and sustained export expansion. This
expansion of approximately 150 basis points. This will be
makes Emcure a standout earnings growth story among peers.
supported by operating leverage and improved field force Initiatives focusing on improving medical representative productivity and
productivity, leading to one of the highest earnings growth cost optimization are expected to yield approximately 150bps of annual
(~30% CAGR) profiles among Indian pharma peers. Although margin expansion. Improved growth and profitability, combined with
the stock has recovered recently, it still trades at a 31% limited capital expenditure, are projected to increase the FCF/EBITDA
discount to the peer average. Therefore, we attribute 24x PE ratio from 30% in FY25 to 45% by FY28, with RoIC exceeding 24% by
multiple basis Jun-27, arriving at a target price of INR 1,740 FY28. This strong financial trajectory is anticipated to lead to a
and initiate coverage with a BUY rating. significant expansion of Emcure's current FY27 P/E multiple of 21x.

Recommendation and Price Target Financial Summary (INR mn)

Current Reco. BUY Y/E March FY24A FY25A FY26E FY27E FY28E
Current Price Target (12M) 1,740 Net Sales 66,583 78,960 89,063 100,996 114,664
Upside/(Downside) 27.5 Sales Growth (%) 11.2 18.6 12.8 13.4 13.5
EBITDA 12,297 14,689 18,169 21,714 25,799
Key Data – EMCURE IN EBITDA Margin (%) 18.5 18.6 20.4 21.5 22.5
Current Market Price * INR1,364 Adjusted Net Profit 5,474 7,172 9,545 12,183 15,303
Market cap (bn) * INR258.5/US$3.0 Diluted EPS (INR) 28.9 37.8 50.4 64.3 80.8
Free Float 22% Diluted EPS Growth (%) -4.7 31.0 33.1 27.6 25.6
Shares in issue (mn) 189.5 ROIC (%) 13.0 13.6 17.0 20.6 24.1
Diluted share (mn) 189.5 ROE (%) 17.3 17.3 18.6 19.6 20.2
3-mon avg daily val (mn) INR376.1/US$4.3 P/E (x) 47.2 36.0 27.1 21.2 16.9
52-week range 1,580/889 P/B (x) 9.3 6.1 4.6 3.8 3.1
Sensex/Nifty 80,600/24,565 EV/EBITDA (x) 22.2 17.9 14.0 11.2 9.0
INR/US$ 87.5 Source: Company data, JM Financial. Note: Valuations as of 1/Aug/2025

Price Performance JM Financial Research is also available on: Bloomberg - JMFR <GO>, Thomson Publisher & Reuters, S&P Capital IQ,
% 1M 6M 12M FactSet & Visible Alpha
Absolute 6.4 9.1 3.5 You can also access our portal: www.jmflresearch.com
Please see Appendix I at the end of this report for Important Disclosures and Disclaimers and Research Analyst Certification.
Relative* 10.2 6.4 4.0
*To the BSE Sensex Amey Chalke Abin Benny (We acknowledge the support of
[email protected] [email protected] Gourav Bhama in preparation of this
Tel: (91 22) 66303056 Tel: (91 22) 69703621 report)

JM Financial Institutional Securities Limited Page 2

1 August
Emcure2025
Pharmaceuticals 1 August 2025
INDIA| HEALTHCARE |
COVERAGE INITIATION

Table of Contents Page No.

Focus charts 4
Investment thesis 6
Valuation; Robust growth profiles yet relatively cheaper 7
India business 8
Gynaec-focused player; driving the domestic business 15
Cardiac segment; sustenance of the business 17
Brand-led niche therapy growth 19
Strengthening at therapy levels – the significant triggers 20
Entry into wellness healthcare: Diversifying product mix 21
Domestic outlook: The strong horse in the derby 23
International markets: Complementary to domestic business 24
Infrastructural capabilities 28
Financials: Robust outlook 31
Key risks 33
Company overview 34
Management background 35
Financial Tables (Consolidated) 37

As the Indian pharmaceutical market transitions from mass-market generics to more

specialty and novel therapies, Emcure presents an attractive opportunity for investors
seeking exposure to a mid-sized player capable of outpacing industry growth. We
expect the company to deliver 13–14% organic revenue CAGR over FY25–28,
driven by strong domestic and export performance, with annual margin expansion
of ~150 basis points supported by operating leverage and improved field force
productivity, leading to one of the highest earnings growth profiles among Indian
pharma peers. We initiate coverage with a BUY and a target price of INR 1,740.

RECENT REPORTS

Apollo Hospitals OneSource Specialty

Aster DM Healthcare Piramal Pharma Dr Reddy’s Laboratories
Enterprise Pharma

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Emcure Pharmaceuticals 1 August 2025

Focus Charts
Exhibit 1. Emcure ranks among the Top 14 IPM companies… Exhibit 2. …and continues to inch up to IPM growth rate with the
Company (INR Bn) Rank MAR'25 3Y CAGR potential to improve ranks…
Sun 1 185 10% 25%
22%
Abbott 2 146 9%
Cipla 3 128 7% 18%
20%
Mankind 4 112 8%
Alkem 5 91 8%
15%
Intas 6 85 13% 12%
Torrent 7 80 10%
9%
Lupin 8 80 7% 10% 8% 7% 8%
11% 11%
Macleods 9 76 9% 5%5% 6%
Dr.reddys 10 72 7% 5% 3%
Zydus 11 67 7%
Aristo 12 66 6% 0% 2%
Gsk 13 52 3% FY19 FY20 FY21 FY22 FY23 FY24 FY25
Emcure 14 51 4%
Emcure IPM
Glenmark 15 50 5%
Source: IQVIA, Company, JM Financial Source: IQVIA, Company, JM Financial

Exhibit 3. …on the back of improving PCPM… Exhibit 4. …which should help Emcure unlock volume growth
4500 900 IPCA Labs
783 632 735 8
4000 508 730 800 Emcure Ajanta
470 6
3500 605 700
4
3000 600 Alembic FDC
2
2500 500
-
4150
4149
3818

2000 400
3691

3634
3457

3411

Torrent JB
1500 300
1000 200
Mankind Alkem
500 100
0 0 Eris
FY19 FY20 FY21 FY22 FY23 FY24 FY25

No. of MRs PCPM ('000) Vol.4Y CAGR% Price 4Y CAGR% N.I 4Y CAGR%

Source: Company, JM Financial Source: IQVIA, Company, JM Financial

Exhibit 5. International business is expected to grow at 15%... Exhibit 6. …with proven record of successful inorganic expansions
70 200
64
180
Tillomed Sales 174
60 55
160
48
50 140
42
120
40 35 100
EUR mn
INR bn

100
27 28
30
80

20 60
40
10
20 5
- 0
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY14 FY20 FY24
Source: Company, JM Financial Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

Exhibit 7. Well diversified growth in both domestic and export Exhibit 8. …to aid margin improvement and result in better return
businesses… ratios…
140 27
22.7 22.5 25
21.5 24.1
120
19.7 20.4
24
18.5 18.6 22.3
20
100
51 20.6
21 20.2
80 19.6
46 15
INR bn

18.6
41
60 36.6 17.3 17.3 17.0
18
31.4 10
15.9
32.0 31.8
40
64 15
48 55 5 13.6
20 42 13.0
35
27 28
- 0 12
FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY23 FY24E FY25E FY26E FY27E FY28E

Sales outside India India Sales EBITDAM% RoE % RoIC %

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 9. …and robust FCF flow Exhibit 10. Emcure trades at attractive valuation than peers
14 64.3 70 40
55.3 45.5

12 60 Torrent
35
48.1
10 50
Mankind
8 40 30
P/E ratio FY28

29.1 30.3
27.9 Ajanta
6 12.0 30 Eris
11.7
25
J.B.
8.7 Ipca
4 7.9 20 Alkem

Emcure
2 4.4 10 20
3.7 3.4
Alembic
0 0
FY22 FY23 FY24 FY25 FY26E FY27E FY28E 15
5% 10% 15% 20% 25% 30% 35% 40%
FCF (INR bn) FCF/EBITDA % FY25-28E EPS CAGR

Source: Company, JM Financial Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

Investment Thesis
 Bounce-back of domestic business: Growth in Emcure’s domestic business is returning to
double digits after a period of subdued performance, during which it dragged overall
growth due to heightened competition in key products and internal restructuring efforts.
In FY25, the India business rebounded with high single-digit growth, and growth is
expected to accelerate to an early double digits over the next 3 years, driven by improving
volume and ramp-up of newly launched products. In women’s healthcare, the company
has introduced new offerings in menopause and PCOS segments, while in diabetes and
cardiac care it is poised to benefit from synergies following the integration of the Sanofi
portfolio and enhanced access to super-specialists. The company has also strengthened its
dermatology (derma) division by appointing the former head of Galderma with a strategic
focus on cosmetic dermatology—a segment known for its high entry barriers.
Additionally, upcoming launches in ophthalmology (opthal), consumer wellness and CNS
are expected to support growth. Overall, India sales are projected to grow by 10–12%
over the next 3 years.

 International businesses on an upswing: Exports account for 54% of Emcure’s total sales
and are primarily driven by three key geographies: Europe, Canada, and Emerging
Markets. The company has established its presence in Europe and Canada through
strategic acquisitions and is now leveraging both its domestic portfolio and a growing
pipeline of complex generics to expand globally. The export portfolio includes hospital-
focused complex injectables, biosimilars, recombinant asparaginase, antibody-drug
conjugates (ADCs), liposomal Amphotericin B, and ARV tender market, positioning
Emcure in high-barrier, high-margin segments. While growth in Europe is expected to
remain in single digits due to market maturity, Canada and Emerging Markets are likely to
deliver strong double-digit growth, supported by the launch of differentiated and
specialty products.

 Improving fundamentals to drive profitable growth: Although Emcure has

underperformed its India-focused peers in recent years, it is well-positioned for strong
outperformance over the next 2-3 years. We project revenue/EBITDA/PAT CAGR of
13%/21%/29% over this period, driven by a recovery in domestic growth and sustained
double-digit expansion in exports. This makes Emcure one of the fastest-growing earnings
stories among its peers. The company’s focus on improving medical representative (MR)
productivity and cost optimisation is expected to result in annual margin expansion of
around 150bps. With improving growth and profitability, along with limited capex
requirements, the FCF/EBITDA ratio is projected to rise from 30% in FY25 to 45% by
FY28, while RoIC is expected to exceed 24% by FY28. As a result, we expect the current
FY27 P/E multiple of 21x at CMP, trading at 31% discount than peers (29.2x), to expand
meaningfully in future.
 Unique expansion strategy to firm up valuations: Looking ahead, Emcure is set to
strategically expand into high-growth segments such as diabetes, dermatology, CNS, and
consumer wellness. This expansion, combined with strong volume growth within its
existing portfolio and a substantial contribution from new products, is expected to drive
early double-digit growth in the Indian market over FY25–28E. Furthermore, the
consistent launch of innovative and differentiated products in both domestic and
international markets is poised to be a cornerstone of Emcure's continued success and
competitive advantage.

 Key risks: 1) Intense competition and price wars in generics and bio-similars as even
patented drugs face this threat. 2) Supply chain and price volatility risks, 3) Fluctuation in
foreign exchange rates. This impacts overseas revenue and profitability. 4) Geopolitical
instability poses risks as economic downturns and policy changes disrupt business.

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Emcure Pharmaceuticals 1 August 2025

Valuation
 Robust growth profile yet relatively cheaper: We value Emcure at 24x Jun’27 earnings to
derive a TP of INR 1,740. Considering the above average growth potential of revenues at
13% 3Y CAGR vs industry average of 12% and superior earnings potential (29% 3Y
CAGR vs 21% for industry), coupled with expectations for return ratios to expand
considerably over next 3 years (RoIC of 14% in FY25 vs 24% in FY28E), we believe
Emcure merits 24x PE on Jun-27 EPS, which is at 18% discount than peers (29.2x)
accounting for lower profitability. With the improved fundamentals, the FCF/EBITDA ratio
is projected to rise from 30% in FY25 to 45% by FY28. As a result, we expect the current
Jun-27 P/E multiple of 20.1x at CMP, trading at 31% discount than peers, to expand
meaningfully in future. We initiate with BUY.

Exhibit 11. Valuation

Particulars INR

Jun 27 EPS 73

Multiple 24

Jun 26 TP 1,740

CMP 1,364

% Upside 27.5%
Source: Company, JM Financial

Exhibit 12. Peer comparatives

Sales Earnings
Domestic CMP Mkt Cap EV RoE (%) PE (x) EV/ EBITDA (x)
Company Rating CAGR CAGR
contr.
(INR) (USD mn) (USD mn) FY 25-28 FY 25-28 FY25A FY26E FY27E FY28E FY26E FY27E FY28E
Emcure BUY 46% 1,364 2,945 3,056 13% 29% 19 27.1 21.2 16.9 14.1 11.3 9.0
Peer avg. ex. Emcure 59% - - - 12% 21% 18 37.2 30.4 25.7 23.0 19.5 16.4
Peer mdn ex. Emcure 57% - - - 12% 21% 18 35.0 29.6 26.4 22.6 19.3 16.9
Torrent HOLD 56% 3,678 14,181 14,467 13% 24% 26 49.5 40.9 33.8 29.4 24.6 20.9
Mankind NR 87% 2,566 12,066 12,807 14% 15% 17 50.4 39.1 31.6 29.5 25.3 18.6
Alkem NR 70% 4,899 6,673 6,601 10% 7% 19 25.1 25.7 22.4 20.7 18.0 15.5
Ipca BUY 39% 1,450 4,191 4,384 11% 33% 11 31.7 25.2 21.2 18.6 15.2 12.7
Ajanta NR 32% 2,695 3,835 3,771 10% 10% 25 32.7 27.7 26.1 22.9 19.6 18.3
J.B. HOLD 58% 1,738 3,095 3,047 13% 17% 21 37.3 31.5 27.2 24.0 21.0 17.2
Eris NR 92% 1,808 2,806 3,110 15% 37% 13 44.3 32.7 26.7 22.4 19.0 16.7
Alembic NR 35% 959 2,148 2,280 11% 25% 12 26.5 20.5 16.6 16.3 13.4 11.3
Source: Company, Bloomberg, JM Financial

Exhibit 13. Stock is trading at its avg P/E … Exhibit 14. …and is reasonably attractive vis-à-vis large peers
36 40
34
32 Torrent
35
30
28
Mankind
26 30
P/E ratio FY28

24
Ajanta
22 Eris
20 25
J.B.
Ipca
18 Alkem
16 Emcure
20
Dec-24
Nov-24

Mar-25
Jan-25

Jul-25
Aug-24

Oct-24

Feb-25
Sep-24

Apr-25

May-25

Jun-25

Alembic

15
P/E Ratio +1 std P/E 5% 10% 15% 20% 25% 30% 35% 40%
FY25-28E EPS CAGR
-1 std P/E Avg - P/E Ratio

Source: Company, JM Financial Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

1. India business
A. Inching towards IPM growth (46% of rev.): Emcure was ranked among the Top 14
companies in the IPM as of Mar’25. Despite growing faster than the IPM in FY21 and
FY22, the company’s growth fell below IPM growth in FY23-25 due to contraction in key
brands across top therapies. However, sustained efforts to grow via new initiatives, its in-
licensing deal with Sanofi, and launch of new products helped lift growth closer to IPM
levels in FY25. We anticipate that growth will continue to inch up YoY over FY26 on
account of robust plans in the cardiac and gynaecology (gynaec) segments (which
contribute the majority of sales), which will see new levers of growth from restructuring
of the cardio-diabeto business, ramp-up of synergies from Sanofi and growth in
gynaecology from increasing presence in menopause, PCOS and endometriosis, which are
three areas that are rapidly growing. It will be a two-pronged strategy of ‘what is big,
make it bigger’, and then new launches in the emerging markets.

Exhibit 15. We expect domestic business to grow at low teens… Exhibit 16. … and inch closer to IPM growth
60 20% 25%
16% 22%
12%
50 18%
12% 15% 20%
11%
40
10% 15%
12%
30
51 9% 8%
46 5% 10% 7% 8%
20 41 11% 11%
37 6%
32 -1%
32 31
-1% 5%5%
0% 5% 3%
10

- -5% 0% 2%
FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY19 FY20 FY21 FY22 FY23 FY24 FY25

India Sales (INR bn) YoY growth Emcure IPM

Source: Company, JM Financial Source: IQVIA, Company, JM Financial

Exhibit 17. Emcure is ranked 14th among the top companies in IPM
Company (INR Bn) Rank MAR'25 3Y CAGR Market share %
IPM 2,333 8%
Sun 1 185 10% 8%
Abbott 2 146 9% 6%
Cipla 3 128 7% 5%
Mankind 4 112 8% 5%
Alkem 5 91 8% 4%
Intas 6 85 13% 4%
Torrent 7 80 10% 3%
Lupin 8 80 7% 3%
Macleods 9 76 9% 3%
Dr.Reddys 10 72 7% 3%
Zydus 11 67 7% 3%
Aristo 12 66 6% 3%
Gsk 13 52 3% 2%
Emcure 14 51 4% 2%
Glenmark 15 50 5% 2%
Source: IQVIA, Company, JM Financial

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 Emcure Pharmaceuticals 1 August 2025

B. Head-to-head with IPM (therapy level) growth: While the business clearly witnessed a
strong fall in growth during FY22-24 in key therapies vs. IPM growth rates, consistent
efforts have helped Emcure rebuild the growth trajectory of the top 15 therapies, of
which a majority have seen a positive turnaround in FY25; current growth initiatives and
new product launches will help in lifting growth in the remaining therapies in the same
direction.

Exhibit 18. Key therapies are expected to turnaround growth at a faster pace
FY25
Therapy
MAT (INR mn) MS % Gwth YoY% 3Y CAGR% IPM Gwth YoY IPM 3Y CAGR%
Cardiac 10,551 3.5 3.5 -3.0 11.7 10.1
Gynaec. 9,393 8.3 0.8 6.7 4.0 8.7
Anti-Infect 6,518 2.6 13.6 4.3 5.1 5.0
Pain 3,620 2.0 8.3 13.2 7.6 9.3
Vitamins 3,386 1.9 2.0 -1.7 8.1 6.4
Blood 2,983 14.6 10.5 8.4 4.1 5.4
Antineoplast 2,768 4.5 26.8 6.3 13.1 20.2
Respiratory 2,593 1.4 -0.5 4.1 3.4 4.3
Antiviral 2,286 19.3 -0.9 10.7 -1.4 -22.8
Gastro 1,864 0.7 2.8 2.9 9.7 9.8
Anti Diabetic 1,467 0.7 12.7 25.5 8.2 7.0
Hepato 1,235 4.4 7.9 10.7 9.6 11.0
Neuro / Cns 802 0.6 -11.9 0.6 8.6 9.6
Hormones 412 1.2 27.1 18.4 6.1 7.7
Derma 332 0.2 -14.4 -19.1 9.5 7.5
Source: IQVIA, Company, JM Financial

C. Building nation’s most trusted women’s healthcare brand: The top therapies of
Emcure’s portfolio – largely cardiac, followed by vitamin, blood, anti-infective and
hormonal offerings – have, despite holding a sizeable share of MAT among the top 15
therapies, primarily catered to supplement the extended needs of gynaecology and
women’s health therapies. This inter-therapeutic synergies between the top avenues of
Emcure to aid the needs of pregnant women has been not only able to make Emcure
the leading company in gynaec offerings, but also the leading women’s healthcare
brand in India.

Exhibit 19. On the path to create a balanced therapy mix

FY22

FY25

Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

D. Building larger brands: Emcure has, over the years, successfully built more than six
brands that are above INR 1bn each and almost 13 brand portfolios that range from INR
500mn to INR 1bn. We expect that, over the next 3 years, it can add over four brands
into the INR 1bn+ categories and another 13 brands into the INR 500mn-1bn category.
These transitions into higher categories will be expectedly led by the company’s
ongoing plans to scale up upcoming therapies and specifically bolster the singular
brands driving the portfolios of niche therapies. Additionally, with the integration of
Sanofi’s portfolio, Emcure will be able to boost the scale of the former’s brand sales.

Exhibit 20. Brands >INR 1bn MAT Exhibit 21. Brands of INR 500mn-1bn MAT
60

50
18

40 20

Alkem
MAT INR bn

JB Pharma
IPCA labs

30
15 Mankind
Emcure
Alembic

FDC

20
Torrent

6
Eris

6
Ajanta

10 6 3
4
5
0 1

No. of brands

Source: IQVIA, Company, JM Financial

Source: Company, JM Financial

E. Positive headroom visible for growth: While some of the key brands have shrunk in
FY23-25, we note that the complementary brands of same molecules have still
maintained their growth at par/above IPM growth. For example, while all brands under
the Orofer umbrella grew, Orofer-FCM has shrunk on account of loss of exclusivity
(patent) and heavy pricing pressures from small competitors. However, the
management is confident that FCM will grow ahead on account of price stabilisation
and exit of certain key competitors. Likewise, brands that faced challenges over the last
2-3 years are poised for a turnaround in the next couple of years.

Exhibit 22. Line extended products like FCM saw degrowth due to LOE and are at the influx point of turn around
FY25 Sales
Brand Molecule Therapy % of Sales 2 Yr CAGR 2Yr IPM CAGR
(INR mn)
Orofer-Xt Conv.Iron Gynaec 2,614 5.1% 7% 3%
Zostum Cefoperazone+Sulbactum Anti infectives 2,295 4.5% 29% 4%
Bevon Oth. Multivit.-Min. Vitamins 1,629 3.2% 0% 5%
Orofer Fcm Conv.Iron inj Gynaec 1,257 2.5% -7% 8%
Maxtra Cold prep + Stomatologicals Respiartory 1,187 2.3% -3% 3%
Metpure-Xl S-Metoprolol Cardiac 973 1.9% 8% 7%
Encicarb Conv.Iron Inj. Gynaec 720 1.4% 26% 8%
Orofer-S Conv.Iron Inj. Gynaec 692 1.4% -10% 8%
Pause Tranexamic Acid Blood related 650 1.3% 3% 4%
Feronia-Xt Conv.Iron Gynaec 617 1.2% -3% 3%
Lornit Ornithine + Oth.Hepatic Prot.Lipo Liq. Hepatoprotectives 601 1.2% 11% 9%
Augpen Amoxy. & Clav. Anti infectives 562 1.1% -9% 3%
Spegra Oth. Anti Hiv Prep. Anti viral 533 1.0% 9% 19%
Osteri Teriparatide Pain 521 1.0% 10% 19%
Orofer Xt Plus Conv.Iron Liquid Gynaec 512 1.0% -8% 2%
Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

F. Cloaked as an acute player: While Emcure’s parent entity has been solely focused on
the chronic business, a majority of its MAT, similar to peers, is accounted for by the
acute segment and catered to by its subsidiary Zuventus which largely sells gynaec
products. With plans to have cosmetology and derma segments, we expect the
contribution from the acute segment to rise further. However, we also do not limit our
outlook for the chronic segment as the company is equally invested in growing the
chronic segment. The company’s ambitious Plans w.r.t. plans to enter opthal, where the
it is in phase 3 of testing the ready-to-use opthal grade Bevacizumab for wAMD with a
patented technology and plans regarding R-Asparaginase, which if offered in the Indian
market, have the potential to boost its chronic illness segment.

Exhibit 23. Acute and Chronic business split

120

100
65%

80
45%

60
82%

40
66%

66%

40%
68%

20 53%

93%

59%
-
Mankind

Emcure
Alkem

Ajanta
FDC
Alembic

Eris

JB
Torrent

IPCA

Chronic Acute

Source: IQVIA, Company, JM Financial

G. New therapies to revamp acute business: Over the past 3 years, Emcure’s growth in the
acute segment has been lacklustre at 5% CAGR, the lowest among peers. This has
primarily been on account of the gynaec therapy remaining muted over FY 23-24 and
FY24-25 vs. 7% and 4% respectively for IPM. However, continuous efforts to increase
its presence in menopause, PCOS and endometriosis, along with focus on opthal and
derma, will aid in higher rate of growth in the segment.

Exhibit 24. Emcure’s growth in acute segment over last 3 years has been sub-par wrt industry players…
CAGR 6% CAGR 7% CAGR 10% CAGR 5% CAGR 11% CAGR 3% CAGR 5% CAGR 11% CAGR 12% CAGR 15%
80
70
60
50
40
30
20
10
-
Torrent Mankind Eris Emcure IPCA Alkem JB Alembic Ajanta FDC

FY22 (INR bn) FY25 (INR bn)

Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

H. Inorganic efforts to turnaround chronic: Like in the acute segment, the company has
seen muted growth in the chronic segment. This segment, largely led by the parent
entity, has struggled to scale up the cardiac businesses over FY2-24. However, with the
integration of Sanofi to the portfolio with MR and product synergies, the cardiac
segment, which contributes the majority of the chronic segment, is expected to
outperform industry growth and rise to be at par with the top growing companies in
the country.

Exhibit 25. …and similarly chronic segment’s growth has been muted during the same period
CAGR 11% CAGR 12% CAGR 8% CAGR 1% CAGR 18% CAGR 13% CAGR 19% CAGR 7% CAGR 9% CAGR 6%
50
45
40
35
30
25
20
15
10
5
-
Torrent Mankind Eris Emcure IPCA Alkem JB Alembic Ajanta FDC

FY22 (INR bn) FY25 (INR bn)

Source: IQVIA, Company, JM Financial

Exhibit 26. New product launches and venturing into new therapies along with Inorganic and in-licensing efforts would aid growth
30 24.4
25
17.2
20 15.6
13.2
15 11.2
7.2 7.6 7.0
10 4.6 5.2
3.9
3.2
5
-1.9
0
-6.4
-5
-10
FY19 FY20 FY21 FY22 FY23 FY24 FY25

Acute growth YoY% Chronic growth YoY%

Source: IQVIA, Company, JM Financial

I. Volume growth - need of the hour: As the company’s major business is being driven by
the acute segment, it is imperative for it to focus on higher volume growth to improve
topline expansion. However, Emcure’s growth has been primarily driven by price
increases and new innovations. Emcure’s volume CAGR over the last 4 years is 0%
while peers have seen substantial contribution from volume growth, which aids their
overall improved growth profiles. The company’s volume growth has been particularly
muted over the last 3 years on account of slower growth in cardiac and vitamin
therapies, and certain key brands in gynaec, anti-infective and vitamins. However, the
synergies in the Sanofi business, new product launches in cardiac and derma, plans to
launch Amphotericin B Liposomal, introduction of opthal therapy and rapid growth
plans for derma (especially in cosmetics) would help revive volume growth in the
business by 3-4% levels in the next 1-2 years.

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Emcure Pharmaceuticals 1 August 2025

Exhibit 27. Volume CAGR over last 4 years is 0%, however… Exhibit 28. …improvement in PCPM to aid 3-4% volume growth
IPCA Labs 22.1
22.5
8
Emcure Ajanta 18.5 6.1
6
4 14.5 11.7
9.4 6.2
Alembic FDC
2 10.5 2.5
5.8
- 6.5 5.4 1.9
5.3 3.6 3.4
3.7
2.5 9.8 2 1.9
Torrent JB 2.5 4.6 6.0
3.9 3.8 4.1 3.5
0.1 0.4
-1.5 -4.4
-5.7 -5.4
Mankind Alkem
-5.5
Eris FY19 FY20 FY21 FY22 FY23 FY24 FY25

Vol.4Y CAGR% Price 4Y CAGR% N.I 4Y CAGR% Vol.Gwth Price Gwth N.I Gwth Total Growth

Source: IQVIA, Company, JM Financial Source: Company, JM Financial

J. Strong MR network; building brick by brick: Emcure has a strong ground force of 4,150
MRs who are primarily responsible for driving growth. Over the last 3 years, the MR
strength has picked up pace post a downward trend seen during Covid. The integration
of 220 MRs from Sanofi has furthermore created possibilities to deepen the company’s
reach in the country. The increasing MR count, however, has also supressed PCPM; we
believe that synergies from Sanofi and improving product portfolio will help in quicker
ramp-up of PCPM in the coming quarters.

Exhibit 29. MR strength has picked up pace post –ve trend till FY24.. Exhibit 30. …on account of synergies of 220 MRs with Sanofi
4500 900 700 18
783 632 735
16.7
4000 508 730 800 16
470 600
605 14
3500 700
500
11.9 12
3000 600
400 10
2500 500 8.9

660
630

630
610
8
590

300
4150
4149

560

540
3818

2000 400
3691

3634

6
3457

3411

200
1500 300 4
1000 200 100
2

500 100 0 0
2QFY24

3QFY24

4QFY24

1QFY25

2QFY25

3QFY25

0 0 4QFY25
FY19 FY20 FY21 FY22 FY23 FY24 FY25

No. of MRs PCPM ('000) PCPM ('000) YoY growth %

Source: IQVIA, Company, JM Financial Source: Company, JM Financial

K. Rampant portfolio expansion: New introductions have always been an integral part of
Emcure’s growth story. That is likely to continue with aggressive expansion of its brand
portfolio at a faster pace than its domestic-focused listed peer set. Going ahead,
Emcure is further expected to expand into dermatology, diabetes (GLP-1), CNS,
oncology (biosimilars), and ophthalmology. The ramping up of these opportunities in
newer segments provides Emcure significant headroom for future growth.

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Emcure Pharmaceuticals 1 August 2025

Exhibit 31. Emcure’s annual domestic sales growth breakup over FY15-24

6 6 5 3
4 6 2
6 0 4
4 3 6 5 5 6 6
2 4 3
1 1
-1 0
-2 -4 -3
-2 -1

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Pricing growth % Volume growth % New launches growth %

Source: IQVIA, Company, JM Financial

Exhibit 32. Cumulative additions to portfolio over FY23-25

134
121 117
102
91 88
74 66
49 40

Alkem Eris Mankind JB Emcure Peer avg. Torrent Ajanta Ipca Alembic
Pharma (excl. Pharma
Emcure)
Source: IQVIA, Company, JM Financial

L. Diversified domestic geography spread: Emcure’s domestic business is well diversified

across the five regions of the country, which safeguards it from micro challenges and
unforeseen hurdles. More importantly, on the strategy front for MNCs, it makes
Emcure, a prime candidate at partnerships to expand its growth profile, via in-licensing
deals.

Exhibit 33. Geographic mix (%) of Emcure domestic business

13 17 19 18 20

27 24 23 22 23

22 22 21 23 18

16 15 15 15 15

21 22 22 22 24

FY20 FY21 FY22 FY23 FY24

East Zone North Zone South Zone West Zone Rest of India

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

2. Gynaec-focused player; driving the domestic business

A. Well placed market leader: Emcure is recognised as a leader in India's women's
healthcare market. with 8.4% market share (IQVIA) in the Indian gynaecology segment.
Apart from the share contributed by gynaec, women’s healthcare market share for
Emcure is aided by complimentary therapeutic services that are essential in women’s
healthcare. These include cardiac, and blood related and anti-diabetic segments, which
cater to ~39% of women’s healthcare offerings by Emcure.

Exhibit 34. Offerings in women’s healthcare

Brand names FY25 MAT INR mn Therapies Usage
Iron deficiency; Anemia management (for adolescence,
Orofer, Ferium, Feronia 6,790 Gynaec
pregnancy, post-pregnancy, and pre- and post-menopause)
Hypertension management (for adolescence, pregnancy, post-
Metpure, Numlo, Asomex, Temsan, Eslo 4,220 Cardiac
pregnancy, and pre- and post-menopause)
Menstrual disorder management (for adolescence and pre- and
Pause, Sylate, Evanew 1,360 Blood
post-menopause)
Diabetes management (for adolescence, pregnancy, post-
Vylda, Emsita, Xilia 1,130 Anti Diabetic
pregnancy, and pre- and post-menopause)
Galact 332 Gynaec Breastfeeding (for post-pregnancy)

Materna HCG, Materna HMG, Emprogest, Exhep, Tosiban 810 Gynaec Infertility management (for pregnancy)

Dydrofen, Emdydro, Zuviston 690 Gynaec Pregnancy support (for pregnancy and post-pregnancy)

Celol, Denmab, Osteri, Coralium 810 Gynaec Post-menopausal osteoporosis (for pre- and post-menopause)
Pegex, Emtreo, Eligard, Trazumab, Oxa, Citafine, Cancer treatment (for adolescence, pregnancy, post-pregnancy,
1,230 Gynaec
Embremma, Bevarest and pre- and post-menopause)
Source: IQVIA, Company, JM Financial

B. Brand universes under common molecules: Emcure has undertaken a very unique
strategy to improve its sales capability by introducing multiple brands under the same
molecule umbrella. This strategy gives it the leverage to sell through doctors of different
specialities.
Example: Emcure has three key mother brands in iron deficiency that are branched out
through almost 16 brand names with only slight variations in their molecular
compositions. This enables doctors to control the dosage required as per bespoke needs
of the specialities. Thus, Orofer XT is sold via gynaec doctors, Feronia via GPs and
Ferium via ortho doctors.

Exhibit 35. Emcure offers 16 brands under iron molecule group

BRAND (INR mn) COMPANY MAT FY23 MAT FY24 MAT FY25 3Y CAGR%

Orofer-Xt Emcure 2,281 2,400 2,614 11.3

Orofer Fcm Emcure 1,454 1,269 1,257 -0.3
Orofer-S Emcure 863 767 692 0.5
Orofer Xt Plus Emcure 608 581 512 1.4
Orofer-Xt Total Emcure 89 96 99 7.3
Orofer Emcure 27 26 24 -6.3
Orofer D3 Emcure 16 14 12 -11.0
Feronia-Xt Zuventus 651 658 617 1.5
Feronia-D3 Zuventus 47 45 42 -8.4
Feronia-Max Zuventus 23 27 37 34.0
Feronia Fcm Zuventus - 19 31 NA
Feronia Zuventus 27 19 16 -13.1
Feronia-Hp Zuventus 6 6 8 13.0
Ferium-Xt Emcure 439 434 425 4.8
Ferium Emcure 552 516 400 -7.5
Ferium-D3 Emcure 11 8 6 -25.3
Total Emcure Iron Molecule MAT 7,095 6,887 6,792 4.0
Total IPM Iron molecule MAT 33,512 34,700 36,273
MS % 21.2 19.8 18.7
Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

 Orofer XT is a nutritional supplement—each film-coated tablet provides 100 mg of

elemental iron (as ferrous ascorbate) and 1.5 mg folic acid—often also available in
formulations with methylcobalamin (B₁₂) and zinc†. It’s used primarily for prevention and
treatment of iron deficiency anaemia, especially during pregnancy, lactation, or chronic
blood loss, helping boost haemoglobin levels, reduce fatigue, and support overall red
blood cell formation.

 Feronia tablet, produced by Zuventus, combines ferrous ascorbate (equivalent to ~100 mg

elemental iron) and 1.5 mg folic acid. It is marketed as a basic haematinic supplement to
prevent and treat iron deficiency and folate deficiency anaemia, particularly after the first
trimester of pregnancy. Typically taken as one tablet daily under medical supervision, it
supports haemoglobin synthesis, red blood cell formation, and improves oxygen delivery
and energy levels

 Ferium tablet, largely similar to Feronia but manufactured and marketed by Emcure,
combines Iron (III) Hydroxide Polymaltose Complex—equivalent to 100 mg of elemental
iron—and 350 µg folic acid per chewable tablet. It is designed to prevent and treat iron
deficiency and folate deficiency anaemia, support red blood cell formation, boost
haemoglobin levels, relieve fatigue, and improve energy, making it especially useful
during pregnancy or nutritional deficiency. The chewable format enhances ease of
consumption, and it is typically taken once daily under medical supervision.

C. Well-spread growth triggers in women’s healthcare: The company has a well-

established pipeline of projects under the gynaec portfolio, which is expected to boost
sales over FY26-27. These include strategies to ramp up the OTC segment with product
range under Arth and Galact brands, increasing presence in menopause, PCOS, and
endometriosis segments. With 57% women suffering from anaemia, specifically a large
number of cases in pregnant women, the segment offers vast opportunities to the
company to make further innovations.

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Emcure Pharmaceuticals 1 August 2025

3. Cardiac segment; sustenance of the business

A. A versatile product portfolio: Emcure has a very robust portfolio of general cardiac
offerings, routed via line extensions of key cardiac mother molecules sub-grouped
under various brands (example: Metpure which has the base molecule of metoprolol
has extended brands with molecular combinations with amlodipine – Metpure-AM,
atorvastatin – Metpure AR, hydrochlorothiazide – Metpure H, telmisartan – Metpure
TEL and metoprolol succinate – Metpure XL). This segment is the highest
contributor of Emcure’s domestic sales (currently contributing to 21% of sales) on
the back of the benefits of catering to the large three cardio-vascular treatment
avenues, namely, Antihypertensives, Anticoagulants and Antihyperlipidemics. With
the in-licensing deal with Sanofi, Emcure has also gained access to the former’s
super speciality cardiac portfolio, which has the potential to boost Sanofi’s volume
routed through strong network of Emcure.

Exhibit 36. Antihypertensives, Anticoagulants and Antihyperlipidemics hold 78%/13%/8%

shares of the cardio portfolio respectively
Mother Molecule MAT (INR mn) Usage

Metoprolol 1,491
Telmisartan 916
Amlodipine And Atenolol 908
Amlodipine 812
Nicorandil 231
Efonidipine 150
Sacubitril And Valsartan 79 Antihypertensives
Azilsartan 54
Olmesartan Medoxomil And Chlorthalidone 46
Losartan 42
Ivabradine 25
Propafenone 16
Bisoprolol Fumarate And Telmisartan 11

Total 4,782 78%

Enoxaparin 739
Rivaroxaban 42
Anticoagulants
Acetylsalicylic Acid 21
Nicoumalone 15

Total 817 13%

Rosuvastatin 348
Antihyperlipidemics
Atorvastatin 146

Total 494 8%
Source: IQVIA, Company, JM Financial

Exhibit 37. Key brands of Sanofi to add cardiac speciality to Emcure’s portfolio
Brand Mother Molecule MAT (INR mn)

Cardace Ramipril 1,495

Clexane Enoxaparin sodium 1,111

Lasilactone Furosemide and Spironolactone 587

Cordarone Amiodarone 493

Lasix Furosemide 488

Total 4,174
Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

B. Re-growth in the waiting: The therapy has been the highest contributor of Emcure’s
domestic sales (currently contributing to 21% of sales), but has shrunk over the last 3
years by 3% CAGR while the overall MAT of the company grew by 4% CAGR. This
downtrend is attributable to the drag from key brands in the therapy like Eslo, Asomex,
Consivas, Enoxarin, Exhep, Numlo, Ticaplat, Zilarbi and Lomoh, which cumulatively
contribute to 30% of the cardiac MAT and have declined by 14% CAGR over the last 3
years.

Exhibit 38. Faster growth expected on account of cross-pollination benefits with Sanofi
25 22.5

20
12.1 11.8 12.9 13.1
15 11.7
9.0 9.7
7.5 6.2 11.1
10
3.5
5 0.2
0
-5
-12.0
-10
-15
FY19 FY20 FY21 FY22 FY23 FY24 FY25
Emcure MAT Growth YoY IPM MAT Growth YoY

Source: IQVIA, Company, JM Financial

C. Levered up for growth - In-licensing to boost capabilities:

 Growth of the cardiac segment is expected to be higher vs. the green shoots seen in
1Q from the restructuring of the Cardio-diabeto business. This will be on back of
the higher MR productivity and product portfolio integration of Sanofi with Emcure
and the initiatives to increase the volumes of Emcure’s existing portfolios, specifically
in the niche segments of Anticoagulants and Antihyperlipidemics.
 With the in-licensing deal of Sanofi in FY25, the company has created a cross-
pollination scenario combining Sanofi’s innovative drug formulations with Emcure’s
established presence in various therapeutic areas. This will allow healthcare
professionals to access a wider array of value-driven solutions under one roof, which
will help Emcure to achieve higher volumes, going forward, which would offset any
macro impacts.
 In Sanofi, for a long time, there had not been considerable promotional expenses
on some of the legacy and key products like Cardace. Hence, Emcure has shifted its
cardiologist KOLs and invested heavily in education activities, scientific meetings,
etc. In FY25, Sanofi added INR 4bn worth of Cardiac MAT to Emcure’s portfolio
(organic MAT of INR 6bn).
 Apart from the cardiac portfolio, Emcure will also derive benefits of exclusive
distribution rights of Sanofi’s well established OAD (Oral Anti-Diabetics) brands in
India, notably Amaryl (glimepiride) and Cetapin (metformin).

Exhibit 39. Emcure and Sanofi have almost similar share of revenue Exhibit 40. …Emcure, however, continues to lead by volume of
(INR bn)… brands (No.s.)

10.0
43.9 16
100
46.2 18

Sanofi Emcure Zuventus Sanofi Emcure Zuventus

Source: IQVIA, Company, JM Financial Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

4. Brand-led niche therapy growth

Strong brand capabilities: Emcure has built niche capabilities in certain therapeutic avenues
that are predominantly driven by almost single/handful brand profiles. This suggests the huge
potential that opens up to undertake new initiatives to unlock growth possibilities for these
brands, which can further single-handedly drive the case mix of whole therapies. Going
ahead, as these brands grow, they can leverage their brand presence to expand into newer
products.

Exhibit 41. Strong singular brands of Emcure

Brand Therapy MAT FY'25 INR mn 3Y CAGR About
A top ranked multivitamin, multimineral & antioxidant formulation used to treat vitamin deficiencies
and support immune, nerve, and cognitive health. It includes a broad spectrum of B vitamins (B1, B2,
Bevon Vitamins 1629 2%
B3, B5, B6, B12), vitamins A, D₃, E, biotin, iron, zinc, selenium, chromium, iodine, manganese, and
more
An anti-infective antibiotic brand combining cefoperazone and sulbactam sodium, widely used for
Zostum Anti-Infectives 2295 25% treating severe respiratory, urinary tract and abdominal infections. It's one of Emcure’s top 300
selling brands in India
A polyethylene glycol 3350 (PEG 3350) based osmotic laxative, indicated for chronic constipation in
Pegclear Gastro Intestinal 203 9% adults and children over age 2. It is administered as a solution and requires fluid intake; typical dose
diluted in water 1 3 times daily
An antibiotic combination containing Ofloxacin and Metronidazole, used toAtreat various bacterial
Diof Gastro Intestinal 199 11%
and parasitic infections, including diarrhea, dysentery, and systemic infections
A diabetes management product under Emcure’s metabolic portfolio—likely based on DPP 4
Vylda Anti-Diabetic 781 19%
inhibitors (e.g. vildagliptin) or similar agents used for glycaemic control in type 2 diabetes
An injectable medication used to treat severe osteoporosis, particularly in postmenopausal women
and men at high risk of fractures. Its active ingredient is Teriparatide, a synthetic form of the human
Osteri Pain 521 30%
parathyroid hormone (PTH), which stimulates new bone formation, increasing bone density and
reducing the risk of spinal and other fractures.
A dual action analgesic and anti-inflammatory tablet combining diclofenac + serratiopeptidase,
Emanzen D Pain 457 12% formulated using a double enteric coating technology (“cold coating”) to reduce gastrointestinal
irritation while offering fast pain relief
Listed under Emcure’s analgesic portfolio—a diclofenac-based formulation (often diclofenac
Proxym Pain 292 14% potassium or sodium) for pain and inflammation relief, developed with gastro protective
enhancements
An antiretroviral medication used to treat HIV-1 infection in adults and adolescents weighing at least
Spegra Antiviral 533 16% 40 kg. It's a combination of three active ingredients: Dolutegravir, Emtricitabine, and Tenofovir
Alafenamide.
It's a combination medicine containing Dolutegravir, Lamivudine, and Tenofovir Disoproxil Fumarate.
Viropil Antiviral 409 30%
It is used to manage HIV-1 infection in adults and adolescents
It is used to treat chronic Hepatitis C virus (HCV) infection. It primarily contains Sofosbuvir, which
Sofocure Antiviral 299 22% works by inhibiting the Hepatitis C virus from replicating and spreading, thereby reducing the viral
load in the body.
Medication used to treat various liver diseases, such as hepatitis, fatty liver, jaundice, cirrhosis, and
Lornit Hepatoprotectives 601 17% hepatic encephalopathy. It contains L-ornithine L-aspartate, an amino acid blend that supports liver
function, reduces harmful ammonia levels in the blood, and aids in liver cell regeneration.
Maxiliv, available in tablet and injection form, is an antioxidant supplement manufactured by
Zuventus Healthcare Ltd. and containing glutathione. It is primarily used to manage glutathione
Maxiliv Hepatoprotectives 434 6%
deficiency and conditions like alcoholic liver disease, liver cirrhosis, gastritis, and liver damage in
HIV/HCV co-infection.
Source: IQVIA, Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

5. Strengthening at therapy levels – the significant triggers

Focused path ahead: The company has outlined very specific and clear targets to introduce
new therapies into the portfolio, both organically and inorganically. It has also additionally
laid out plans to grow smaller therapeutic services that have huge headroom and market
potential to grow. On a bigger scale, the plans are to focus on 1) complex injectables. 2)
biosimilars, and 3) new drug delivery routes for existing molecules targeting better efficacy
or new indication. The key focus area will be CNS and derma, and 4) ADC (antibody drug
conjugates).

Exhibit 42. Growth triggers

Therapy/ Segment Plans

Derma Sharpen focus on derma segment with launch of the subsidiary, Emcutix and its key - first of differentiated products like PRX-PLUS and Flawzilo

Management expects derma to lead growth in next 12 months

The niche segment of cosmetology is seeing an uprise which is attracting focus

GLP 1 (Semaglutide) Leverage distribution network and expertise in diabetes care, potentially through partnerships or generic versions following patent expiry

Gynaec Entered into OTC segment with product range under Arth and Galact brands

Launched a portfolio of products in menopause and PCOS segment

57% women are anaemic and 30% men are anaemic. So, there is a huge potential in terms of just people who are not aware that they need it

Increasing presence in menopause, PCOS and endometriosis which are 3 areas that are rapidly growing. So, it will be a two-pronged strategy of
whatever is big, make it bigger.
Restructuring of the cardio-diabeto business is complete, and the company saw a return to normalization during the quarter. We expect this
Cardio-diabeto
restructuring to drive growth going forward. Dibetes would also grow from the integration of Sanofi’s portfolio with Emcure.
Ready-to-use opthal grade Bevacizumab for wAMD with a patented technology is in Phase III and the company expects in the current FY to
Opthal
launch this particular product, which will help foray into the ophthalmic segment. from the Gennova subsidiary, which is dealing in biologics
Filed for approval R-Asparaginase in oncology, which will be the first time the product will be available in India. The R-Asparaginase that is there
Oncology is currently imported from China and it is coming from the natural sources. As far as this particular product is concerned, it has been developed
in-house and is recombinant ensuring batch to batch quality which would prove beneficial to patients who are suffering from blood cancer.
The prices of FCM have stabilized and there's visibility of seeing market share increases because there was an influx of small players and quite a
IDA (FCM)
few of them have exited at this point. So FCM segment would be where the company will now have an upside

CNS The company believes that it has potential to explore and grow in Neuro segment and plans to invest above the market growth rate

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

6. Entry into wellness healthcare: Diversifying product mix

Long term game: Emcure has entered into the wellness segment with the introduction of
Artha and Galact products, a line of OTC and DTC brands in the women’s healthcare regime.
The strategy is largely centred around leveraging the brand image of Emcure as India’s
market leader in women’s healthcare. The company aims at expand the new vertical into a
full fledged separate growth driver for the company on the long run.

Beyond conventional branding: Emcure has resorted to building awareness around the key
symptoms and medical issues the new product lines aim to cater to. However, as a way of
promoting its brands via taking a preachy and conventional route to spread awareness, the
OTC/DTC brands will be turning to popular stand up comedians to throw some light on the
subjects in a light hearted way

Arth-Comprehensive solution for menopause wellness: Arth offers a range of convenient and
easy-to-use products specifically designed for women aged 35-55 to help them manage their
health and well-being during menopause. The products aim to alleviate common symptoms
like hot flashes, night sweats, mood swings, and vaginal dryness. Despite affecting 96% of
women and impacting their daily lives, many delay seeking treatment due to lack of
awareness. The initial product launch includes multi-symptom capsules, tender breast relief
capsules, bone health tablets, and Brahmi capsules specifically formulated to address brain
fog.

Exhibit 43. Arth’s product range aid reduction in severity of Exhibit 44. …by 95.8%* over a period of 60 days
menopause symptoms…
45
39
40 36
35
29
30
25
20
20
15
10
5 1.62
0
Day 0 Day 7 Day 15 Day 30 Day 60

MPS score

Source: Company, JM Financial Source: Company, JM Financial *Result of clinical trials

Diversified into paediatric complimentary segments: Galact, a lactation supplement

formulated with natural ingredients like Shatavari and six other herbs, aims to boost breast
milk production in mothers, which is linked to improvements in infant immunity and IQ. This
is particularly relevant in India, where only 64% of mothers exclusively breastfeed their babies
for the first six months, significantly lower than the recommended levels by WHO and UNICEF
guidelines. Galact's goal is to support all mothers in achieving exclusive breastfeeding for the
first six months, in line with these international guidelines. Building on its 20 years of being
prescribed by healthcare professionals, Galact will now also be available over-the-counter,
expanding access to this natural solution for lactation support. The Galact brand plans to
introduce further products addressing various needs during the lactation phase..

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Emcure Pharmaceuticals 1 August 2025

Exhibit 45. Emcure has re-launched Galact… Exhibit 46. …with more variants to choose from

Source: Company, JM Financial Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

7. Domestic outlook: The strong horse in the derby

Emcure's domestic business in India is poised for a strong outlook, driven by a projected 12%
growth, stemming from an anticipated ~4% increase in volume, ~3% from new initiatives,
and a ~5% price growth. This positive trajectory is further supported by the resurgence of
FCM growth alongside price stabilization. The turnaround of previously underperforming
larger therapy areas, coupled with the introduction and focus on new therapies like
dermatology, ophthalmology, and CNS, will be key growth drivers. Emcure is also set to
capitalize on brand-led niche areas, including antiviral and blood products. The company is
actively developing a well-balanced therapy mix that complements its growing market share
in women's healthcare, further boosted by improved PCPM. Additionally, Emcure's robust
distribution network will leverage the integrated benefits from its partnership with Sanofi for
the cardio and diabetics portfolio.

Exhibit 47. We expect the domestic business to grow in low teens Exhibit 48. …while the contribution to total sales will remain in a
over FY25-28E… tight band
60 20% 60% 55%
16% 53%
12%
50 50% 47% 46% 46%
12% 15% 45% 44%
11%
40 40%
10%
30 30%
51 5%
46
20 41 20%
37
32 -1%
32 31
-1%
0%
10 10%

- -5% 0%
FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY22 FY23 FY24 FY25 FY26E FY27E FY28E

India Sales (INR bn) YoY growth % Sales

Source: Company, JM Financial Source: Company, JM Financial

JM Financial Institutional Securities Limited Page 23

Emcure Pharmaceuticals 1 August 2025

8. International markets: Complementary to domestic business

A. The larger chunk of business: For Emcure, sales outside India across 70 countries
contributes to 50%+ of total revenue. The key markets with higher proportion of
international sales are Europe and Canada, of which Europe has improved contribution
in the last 3 years and Canada has seen stable growth. During FY22-25, revenue
outside India grew at a CAGR of 17% and we expect it to taper to 15% CAGR in FY25-
28E. We also expect contribution from sales outside India to increase by ~200bps over
the next 3 years.

Exhibit 49. We expect exports to grow by 15% CAGR FY25-28E Exhibit 50. Exports contribute to 50%+ of total revenue

INR bn 64

55

20%

22%

23%
19%
18%
48

15%
18%
42

35

14%

16%

16%
12%

16%

17%
28

12%
27

21%
20%

19%

18%

17%

16%
15%
FY22 FY23 FY24 FY25 FY26 FY27 FY28
Europe (Rev INR mn) Canada (Rev INR mn) RoW (Rev INR mn)
FY22 FY23 FY24 FY25 FY26 FY27 FY28
Source: Company, JM Financial Source: Company, JM Financial

B. Aided by inorganic growth: The company has a strong track record of successfully
entering and growing its presence in new markets through inorganic expansion. In the
past, it has made strategic acquisitions such as Marcan Pharma in Canada in 2015 and
Tillomed Labs in UK in 2014, which has allowed it to leverage R&D and manufacturing
capabilities in India and, at the same time, quickly and cost-efficiently establish
distribution channels for products in Canada and Europe.

C. Uniquely strategised across borders: Acquisition of rights of pharmaceutical products,

such as BiCNU in 2012, and in-licensing of pharmaceutical products, such as Atazanavir
and Dolutegravir, have also allowed Emcure to expand its presence in existing markets
as well as facilitate entry into new markets. The focus in international markets is on
developing and commercialising products, which are differentiated and require
significant expertise to develop and manufacture, and, as such, are subject to less
competition and allow the company to enjoy high margins. For example, in Europe and
other key target markets, it is focused on higher value-added generics and complex
injectables, such as Cidofovir and Trepostinil.

D. (i) Europe: As of FY25, Europe contributed to 19% of Emcure’s total revenue, down
250bps YoY. The growth in revenue was also lower at 4% YoY (vs. 18% 3-year CAGR).
However, the ramp-up from the recent acquisition of Manx, collaboration in Italy for
the recently launched PRX-Plus, and the latest approval the company has received for
Amphotericin B Liposomal (first generic to receive approval in the EU) help us bake in
8% CAGR over FY25-FY28E for the region.

 Amphotericin B Liposomal is a lipid formulation of the antifungal drug Amphotericin

B, used to treat severe and life-threatening fungal infections. It is an intravenous
injection that works by targeting the fungal cell membrane, disrupting its structure
and leading to the death of the fungal cells. The liposomal formulation, such as
AmBisome, is designed to reduce the toxicity associated with conventional

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Emcure Pharmaceuticals 1 August 2025

Amphotericin B, particularly nephrotoxicity (kidney damage). It is used for conditions

such as cryptococcal meningitis, visceral leishmaniasis, and various types of systemic
fungal infections.

Exhibit 51. Europe contributed to 19% of Emcure’s total revenue Exhibit 52. We bake in 8% CAGR for Europe’s sales growth for
FY25-28E
21% 20 32% 35%
20%
19% 18
18% 30%
17% 16
16%
15% 14 25%

12 19%
20%
10

19
17
15%

16
8

14.7
14.1
11.9
6 8% 8% 8% 10%

9.0
4 4%
5%
2
0 0%
FY22 FY23 FY24 FY25 FY26 FY27 FY28

FY22 FY23 FY24 FY25 FY26 FY27 FY28 Europe (Rev INR mn) YoY growth
Source: Company, JM Financial Source: Company, JM Financial

(ii) First steps into Europe: Emcure marked its entry in Europe with the acquisition of Tillomed
Labs, along with its subsidiary, Tillomed Holdings Ltd, for GBP 8.7mn (2x FY14 EV/sales).
Since acquiring Tillomed, the association successfully grew revenue from EUR 5mn to EUR
174mn over FY14-FY24 by increasing presence in both the retail and hospital segments and
expanding product portfolio from 2 products in FY14 to more than 150 products now.

Exhibit 53. Emcure has been able to successfully integrate the Tillomed business and
maintain robust growth
200

180 174

160

140

120
100
EUR mn

100

80

60

40

20
5
0
FY14 FY20 FY24

Source: Company, JM Financial

(iii) Acquisition of Manx (EU); still in the game: Led by its strategy of expanding inorganically,
the company acquired Manx Pharma Ltd in Apr’25, for GBP 19.7mn, including GBP 4.7mn
for inventory, of which GBP 6.2mn will be upfront and rest as milestone payments over the
next 18 months. We expect synergies of the deal to converge over FY26 with Manx
contributing potentially ~USD 15mn in sales on back of the 100 molecules portfolio that was

JM Financial Institutional Securities Limited Page 25

Emcure Pharmaceuticals 1 August 2025

acquired via the deal of which there is an existing 40% overlap of the portfolio, which will
aid efficient integration of operations of the entities.

E. (i) Canada: As of FY25, Canada contributed to 16% of Emcure’s total revenue, flat YoY.
Revenue growth spiked over the last 2 years, growing 27% and 36% in FY24 and FY25
respectively. However, we believe that growth will moderate to ~15% CAGR FY25-28E,
with contribution from Canada increasing to 17% on account of the ramp-up from the
recent acquisition of Mantra and improved market share in the generics portfolio.

Exhibit 54. Canada contributed to 16% of Emcure’s total revenue Exhibit 55. We expect growth to be moderate by ~15% CAGR
20 40%
16% 17%
16% 16%
18 36% 35%
14% 16
30%
12% 14
12% 27%
12 25%

10 20%

19
17
8 15%
15% 15% 15%

14
12.5
6
10%

9.2
4

7.3
7%

6.8
2 5%

0 0%
FY22 FY23 FY24 FY25 FY26 FY27 FY28

FY22 FY23 FY24 FY25 FY26 FY27 FY28 Canada (Rev INR mn) YoY growth

Source: Company, JM Financial Source: Company, JM Financial

 (ii) How did Emcure enter Canada? In Canada, Emcure has grown through the growth of
the generic portfolio and differentiated products. Like in Europe, Emcure’s entry into
Canada was marked by its acquisition of Marcan Pharma in 2015. The acquisition was
done for a total consideration of ~CAD 125mn. This acquisition was a crucial step in
Emcure's strategy to expand its global footprint and establish a strong presence in the
Canadian market as Canada was seen as an attractive market due to its significant
generic drug market share (67% of prescriptions in 2014). We expect that further
untapped regions of the geography can be tapped into via consolidation (inorganically) of
the smaller players by Emcure.

 (iii) Widening the reach in Canadian markets: In Nov’23, Marcan acquired a majority stake
in Mantra Pharma, a Canada-based company engaged in the sale and distribution of
pharmaceutical finished formulation products, natural health products and medical
devices, primarily in the Quebec region of Canada. This deal was financed via CAD
57.6mn debt raised by Marcan.

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Emcure Pharmaceuticals 1 August 2025

RoW: As on FY25, RoW contributed to 19% of Emcure’s total revenue, up 140bps YoY. The
RoW sales are majorly driven by higher volumes in South Africa and Zimbabwe, both markets
that are led by ARV products. While the RoW portfolio maintains a proportional balance
between ARV and Non ARV, with ARV business maintain growth momentum in the key RoW
geographies, non-ARV portion is led by expansion into newer geographies like Malta where
sales are driven by therapies like oncology, ophthalmology and anti-fungal. We expect the
RoW segment to grow by 20% CAGR over FY25-28E, increasing the contribution to overall
revenue by 365bps over FY25-28E on the back of higher growth in ARV and non-ARV
portfolios, which drive the business in RoW. Key monitorables remain the stability of
continued growth of the operations in South Africa and Zimbabwe, which are expected to be
the top export destination for Emcure (after EU and Canada), and the strategies to be placed
to revamp the decline in Myanmar.

Exhibit 56. RoW contributed to 19% of Emcure’s sales… Exhibit 57. Driven by ARV and Non ARV business in same proportion
30 40%
23% 33%
22% 28%
20% 25 30%
19% 20% 20% 20%
18%
18% 20%
20
15% 10%
15

26
0%

22
10

18
-10%

15.1
-17%

11.8
5 10.7

8.9
-20%

0 -30%
FY22 FY23 FY24 FY25 FY26 FY27 FY28

FY22 FY23 FY24 FY25 FY26 FY27 FY28 RoW (Rev INR mn) YoY growth

Source: Company, JM Financial Source: Company, JM Financial

 Mixed basket yet clearly strategised: In other markets in the rest of the world, Emcure
utilises a mix of its own front-end capabilities along with partnerships with strong local
and multi-national companies for distribution of products. Product portfolio in most of
these markets are both ARV and non-ARV products leveraged by both India product
portfolio as well as global product filings, particularly complex products that are sold in
Europe and Canada. The company is also focusing on launching biotherapeutic products
in the rest of the world markets. It has established subsidiaries, including in Dubai, South
Africa, Peru, Mexico, Brazil, the Philippines, Kenya, Nigeria, Chile, Australia and the
Dominican Republic, which play an important role in liaising and managing operations in
these markets.

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Emcure Pharmaceuticals 1 August 2025

9. Infrastructural capabilities
A. Manufacturing capabilities: Emcure started as a CDMO business catering to
multinational corporations. This beginning as a CDMO helped it develop the ability to
handle complex manufacturing processes at scale, such as lyophilisation and complete
isolation technology for cytotoxic products. In the manufacturing of biotherapeutics
products, it has successfully developed and deployed various microbial and mammalian-
based platforms.

B. Geographically concentrated, diversified by abilities: Emcure has 13 facilities across

India with nine of the major facilities in Maharashtra and Gujarat. These facilities are
capable of producing pharmaceutical products of a wide range of dosage forms,
including oral solids, oral liquids, injectables, including complex injectable, such as
liposomal and lyophilised injectable, bio-therapeutics and complex APIs, including chiral
molecules, iron molecules, and cytotoxic products. The manufacturing and development
facilities include formulation through process development, and scale-up and full-scale
commercial manufacturing.

C. Capacity utilisation: Emcure’s manufacturing capabilities take approximately 3-4 years

to reach optimal utilisation rates of 75%+. During capacity expansion, the business has
historically witnessed delays in ramping up production and lags in utilisation rates on
the back of changes in types or new product categories being manufactured in the new
capacities.

D. Regulatory certifications: The manufacturing facilities are subject to inspections and

audits by several overseas regulatory authorities, including the USFDA, the U.K. MHRA,
Health Canada, ANVISA Brazil and the EDQM (Europe). For Emcure, it becomes
important to have received these major regulatory approvals and accreditations, which
enable it to supply its products in regulated and other markets.

Exhibit 58. Manufacturing facilities are largely concentrated in the western belt

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

Exhibit 59. Emcure’s manufacturing facilities have received accreditations from various
international regulatory bodies and agencies

Source: Company, JM Financial

Exhibit 60. Manufacturing units of Emcure

Facility Location Type Installed capacity (tablets/capsules in millions) Capacity utilization
Oral Solid Doses, Hinjawadi Pune Leased 2,128.05 72.97%
Biotech Formulations Hinjawadi Pune Rental 7.92 –
Injectables, Sanand Ahmedabad Leased 46.09 76.91%
Oncology Injectables, Sanand Ahmedabad Leased 10.45 4.50%
Orals, Kadu Surendranagar Owned 507.91 10.78%
Orals, Mehsana Mehsana Leased 559.68 25.48%
Orals, Jammu Jammu Leased 1433.7 57.55%
API, Kurkumbh Pune Leased 264.38 36.79%
API, Pimpri Pune Leased 13.51 3.48%
Orals, Jammu Jammu Leased 153.85 17.87%
Orals, Sikkim East Sikkim Leased 804.17 42.54%
Orals, Bengaluru Bengaluru Rural Owned 42.34 74.02%
Biotech, Hinjawadi Pune Leased 6.34 77.92%
Source: Company, JM Financial

E. Research-led business: Emcure has predominantly been focused on strong R&D

capabilities backed by 548 qualified scientists, across five R&D facilities in India, and has
established dedicated teams for new product development, including complex oral
solids, injectables, complex generic APIs and biotherapeutics, technology transfer and
life cycle management. As per latest reported data of FY24, it has been granted 220
patents, and had 30 pending patent applications in several countries; it had also
submitted 102 DMFs for APIs with the USFDA. Of the five R&D facilities, three facilities
are focused on formulations research, one on API research and one on
biopharmaceuticals research.

Exhibit 61. R&D assets of Emcure

Location Lease tenure Major areas of research Approvals obtained

Hinjawadi, Pune, Maharashtra 95 years (2003-98) API DSIR-approved

Hinjawadi, Pune, Maharashtra 95 years (2003-98) Formulations DSIR-approved

Hinjawadi, Pune, Maharashtra 5 years (Jul-23 to Jun-28) Formulations Pending DSIR approval

Hinjawadi, Pune, Maharashtra 5 years (Oct-24 to Sep-29) Biopharmaceuticals and vaccines DSIR-approved

Ahmedabad, Gandhinagar, Gujarat NA - 31 Aug-24 Formulations DSIR-approved

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

F. The company has been able to maintain reasonable R&D expenditure with substantial
efforts to reduce costs (as % of revenue) while also maintaining the quality of research
and considerably good R&D output. The balance in cost management and efficacy of
research quality is commendable to unlock operational benefits that would help expand
margins.

Exhibit 62. Emcure is able to maintain reasonable R&D expenditure with substantial efforts to
reduce costs
3.5 7%
5.81%
3.4 6%
5.05%
4.66%
3.3 5%

3.2 4%

3.1 3.4 3%

3.0 2%
3.1
2.9 3.0 1%

2.8 0%
FY22 FY23 FY24

R&D expenses (INR bn) % of revenues

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

10. Financials: Robust outlook

We expect 13%/21%/29% Revenue/EBITDA/APAT CAGR over FY25-28E, respectively. Key
drivers for growth, which help us bake in 13% CAGR FY25-28E (vs 10% CAGR FY22-25) are:
(1) Improving volumes of gynaec and cardiac therapies; (2) Scale-up of niche therapies where
Emcure in the market leader like blood and anti-infective therapies; (3) Ramp-up of in-
licensing products of Sanofi. (4) Stronger distribution network and penetration of Zuventus.
The company has the potential to create fast-growing segments that can eventually
outperform IPM growth, with expectations to aid domestic business grow at 16% CAGR over
FY25-28E. Its international segment will aid overall growth as we forecast 15% CAGR over
the same period. The increasing contribution of the domestic business (190bps FY25-28E)
along with improving field force productivity will result in 390bps expansion in EBITDA
margin over FY25-28E, in our view. Consequently, APAT growth of 29% will result in RoICs
of 21% by FY28E (vs. 13.6% FY25).

Exhibit 63. Well-distributed revenue growth b/w exports and Exhibit 64. … leads to improving margin profile
domestic…
30
140
22.5
25 22.7
120 21.5
19.7 20.4
18.5 18.6
100 20
64

80
15
55

25.8
48

60
42

21.7
10
35

18.2
28
27

14.7
40
13.3

12.3
11.8
51

5
46
41

20
37
32

32

31

- 0
FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY22 FY23 FY24 FY25 FY26E FY27E FY28E

India Sales (bn) Sales outside India (bn) EBITDA (bn) EBITDA Margin (%)

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 65. PAT to grow in low-high teens… Exhibit 66. …resulting in 21% RoIC by FY28E
18 27

16 13.3 24.1

14 24
12.1 22.3
11.3
12 10.7
21 19.6 20.6 20.2
10 8.9 8.5
18.6
7.5
15.3

8 17.3 17.3
18 17.0
12.2

6 15.9
9.5

4 15
6.7
6.6

13.6
5.3

5.0

13.0
2

0 12
FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY23 FY24E FY25E FY26E FY27E FY28E

Adj Net Profit (bn) PAT Margin % RoE % RoIC %

Source: Company, JM Financial Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

Exhibit 67. Steady FCF generation Exhibit 68. Comparative valuation

14 64.3 70 40

55.3 45.5
12 60
35
48.1
10 50

P/E ratio FY28

30
8 40
29.1 30.3
27.9
6 12.0 11.7 30
25

4 8.7 20
7.9
20
2 4.4 10
3.7 3.4

0 0 15
FY22 FY23 FY24 FY25 FY26E FY27E FY28E 5% 15% 25% 35%
FY25-28E EPS CAGR
FCF (INR bn) FCF/EBITDA %

Source: Company, JM Financial Source: Company, JM Financial

Exhibit 69. Domestic formulations to grow at 16% CAGR in FY24-27

Revenue FY22 FY23 FY24 FY25 FY26E FY27E FY28E

India Sales (bn) 32,047 31,818 31,440 36,600 40,626 45,501 50,961

% Sales 55% 53% 47% 46% 46% 45% 44%

YoY growth -1% -1% 16% 11% 12% 12%

Sales outside India (bn) 26,507 28,040 35,140 42,360 48,437 55,494 63,702

% Sales 45% 47% 53% 54% 54% 55% 56%

YoY growth 6% 25% 21% 14% 15% 15%

Europe 8,968 11,873 14,110 14,740 15,919 17,193 18,568

% Sales 15% 20% 21% 19% 18% 17% 16%

YoY growth 32% 19% 4% 8% 8% 8%

Canada 6,795 7,294 9,230 12,520 14,398 16,558 19,041

% Sales 12% 12% 14% 16% 16% 16% 17%

YoY growth 7% 27% 36% 15% 15% 15%

Other continents 10,745 8,872 11,800 15,100 18,120 21,744 26,093

% Sales 18% 15% 18% 19% 20% 22% 23%

YoY growth -17% 33% 28% 20% 20% 20%

Total Revenue 58,554 59,858 66,580 78,960 89,063 1,00,996 1,14,664

YoY growth 2% 11% 19% 13% 13% 14%

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

11.Key risks
 Intense competition: The pharmaceutical market, particularly in India, is highly
competitive. Price wars, new product launches by competitors, and aggressive marketing
strategies can erode Emcure's market share and profitability.

 Regulatory scrutiny and compliance: The pharmaceutical industry is heavily regulated.

Changes in drug pricing policies, manufacturing standards, quality control requirements,
intellectual property laws, or delays in regulatory approvals for new products can
significantly impact Emcure's operations and financial performance.

 Dependence on key products and therapeutic areas: Significant reliance on a few key
products or therapeutic areas could expose the company to risks if these segments face
increased competition, patent expiry, or changes in treatment guidelines.

 Pricing pressure and government policies: Governments and healthcare payers are
increasingly focused on controlling healthcare costs, leading to downward pressure on
drug prices.

 Product development and R&D failure: Pharmaceutical R&D is a high-risk, high-reward

endeavour. Failure to develop and successfully launch new products, unexpected side
effects during clinical trials, or delays in regulatory approvals for pipeline products can
lead to significant financial losses and hinder growth.

 Raw material and supply chain risks: Dependence on a limited number of suppliers for key
raw materials can expose Emcure to supply chain disruptions, price volatility, or quality
issues.

 Foreign exchange fluctuations: Adverse movements in foreign exchange rates can impact
revenue and profitability from overseas operations.

 Geopolitical and economic instability: Economic downturns, political instability, or

changes in trade policies in key international markets can disrupt business operations,
reduce demand, and impact financial performance.

 Competition from generics/biosimilars: Even innovative products eventually face

competition from generics or biosimilars once their patents expire, leading to significant
price erosion and revenue decline.

 Litigation risks: Emcure may face litigation related to product liability, patent
infringement, or other commercial disputes, which can be costly and damage its
reputation.

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Emcure Pharmaceuticals 1 August 2025

12. Company overview

Mr Satish Mehta, a first-generation entrepreneur and visionary leader, started Emcure in
1981 with the aim of providing affordable and high-quality healthcare to patients to
significantly improve their lives. Emcure is headquartered in Pune, India. It focuses on
developing, manufacturing, and marketing a diverse range of pharmaceutical products
globally. Under Mr Mehta’s leadership, Emcure has become a well-respected name in the
global pharma market with a presence in more than 70 countries through its subsidiaries in
UK, Canada, Singapore, Brazil and other countries. Emcure emphasises research and
development (R&D) to create a differentiated product portfolio encompassing oral solids, oral
liquids, injectables, biotherapeutics, and complex APIs. It has five dedicated R&D centres
across Pune and Ahmedabad. Emcure operates 13 manufacturing facilities in India, some of
which are approved by the USFDA. These facilities are equipped to produce a wide range of
dosage forms and complex products.

Exhibit 70. Timeline of key events

Year Description

1981 Emcure Pharmaceuticals is founded with a vision to provide quality and affordable healthcare solutions globally.

1994 Establishes its first Active Pharmaceutical Ingredient (API) manufacturing unit, laying the foundation for a vertically integrated supply chain.

2002 Introduces its first biologic product, marking a significant step in delivering advanced treatment solutions.

2006 Strengthens its global footprint by entering key international markets, extending its presence to over 70 countries.

2010 Successfully develops and markets 11 chiral molecules, setting benchmarks in drug efficacy and safety.

2015 Becomes the domestic leader in three biologic therapies, reinforcing its commitment to innovation in critical therapeutic areas.

2018 Recognized for groundbreaking launches such as Emluz and Orofer XT with multiple accolades at the AWACS Awards.

2021 Files 234 global patents, with 201 approved, highlighting its R&D expertise in delivering differentiated pharmaceutical solutions.

2023 Expands R&D capabilities with cutting-edge facilities focused on mRNA, vaccines, and complex APIs.
- Emcure’s IPO was successfully listed on Indian stock exchanges, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on July 10, 2024.
2024
- Emcutix, focused on dermatology segment was launched in Oct 2024, to provide breakthrough solutions in prescription, consumer, and aesthetic dermatology.
2025 Emcure Research Centre (ERC) was inaugurated in Ahmedabad.
Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

13. Management background

Exhibit 71. Management background
Name Designation Background

Satish Mehta is the first-generation entrepreneur and visionary who started Emcure in 1981. Mr. Mehta has also
been instrumental in Emcure entering into strategic alliances with MNCs to bring world-class products to the
Indian market at affordable prices. He is a Postgraduate in Chemistry from the Pune University and has a PGDM
Satish Ramanlal Mehta Founder - CEO & Managing Director (Post Graduate Diploma in Management) from the Indian Institute of Management, Ahmedabad (IIM-A). He has
served as a member of: Committee to recommend / frame Rules under the Indian Institutes of Management
Act, 2017 – Ministry of HRD (Government of India). Economic & Commercial Consultative Group (ECCG) – NITI
Aayog (Government of India). India-China Bilateral Council – NITI Aayog (Government of India)

Berjis Desai has been on the Board since 1997. Having practised transactional and dispute resolution laws, for
the last 37 years. He retired as Managing Partner of JSA, a national law firm. A Master of Law (starred first)
Berjis Minoo Desai Chairman, Non-Executive Director
from the University of Cambridge, Berjis is now an independent legal counsel engaged in Private Client Practice,
that is, succession and estate planning for HNIs and promoter families.

Guha has 37 years’ professional experience having held many leadership positions in the Indian Pharmaceutical
Prakash Kumar Guha MD - Zuventus Healthcare Limited Industry. Prakash Kumar has earlier worked with Alkem Laboratories as the President – Sales and Marketing and
at Wander Limited as Deputy Managing Director. He is a graduate in science from Utkal University.

He has been associated with Gennova since 2006. Dr. Singh has been at the fore-front for developing India’s
first mRNA vaccine for COVID-19. Prior to joining Gennova, he worked with the National Institute of Health
CEO and Whole-time Director -
Sanjay Singh (NIH), USA where he headed the Antigen Research Section. Sanjay Singh completed his graduation and post-
Gennova Biopharmaceuticals Limited
graduation in Science (Biochemistry) from the Lucknow University and is a Ph.D. in Biochemistry from the
Central Drug Research Institute, Lucknow.

He’s been associated with the company since 1989. His responsibilities also include overseeing the Commercial
structure and procurement. Sanjay has played a crucial role in devising the strategy for RoW markets enabling
Sanjay Rajanikant Mehta President, Emerging Markets Emcure to enter new markets and deepen market penetration. He has also shaped the company’s commercial
structure and helped the organization achieve a seamless supply chain, continuous improvements in productivity
& smooth distribution of finished products. Sanjay is a Commerce Graduate from the Pune University.

Vikas has been an integral part of the Emcure management team for the last 15 years. He initially looked at
Business Development and later his role expanded to include Corporate Strategy and Finance. He has played a
President, Corporate Development, crucial role in spearheading Emcure’s growth in Europe and Canada. Prior to joining Emcure, Vikas worked in
Vikas Madan Thapar
Strategy & Finance the Silicon Valley, USA with Ebay/PayPal as well as Agilent Technologies. Vikas holds a bachelor’s degree in
Management Science from the University of California, San Diego. He did his MBA from the USC Marshall
School of Business of University of Southern California.

Tajuddin Shaikh has been associated with Emcure for close to two decades and is also on the Board of Emcure’s
International Subsidiaries. Prior to joining Emcure in 2003, he had worked with S.R. Batliboi & Associates (Ernst
Tajuddin Sabir Shaikh Chief Financial Officer
& Young). He is a qualified Chartered Accountant from the ICAI and Cost Accountant from the ICAI. He has
further completed Senior Management Programme course from IIM Ahmedabad.

Dr. Gondaliya has played a vital role to ensure Emcure’s Manufacturing Units run productively and seamlessly.
Prior to Emcure, he served reputed pharmaceutical industries in India where he held positions of responsibility of
Deepak Gondaliya President, Technical Operations Developing products for global markets. Deepak holds a Ph.D. in Pharmacy (Pharmaceutics and Pharmaceutical
Technology). Deepak is a named inventor on more than 20 patents and has published 5 articles in international
journals, with contributions in Novel Drug Delivery Systems and Process.

Kuber Mahadeo Jagdale has an impressive track record of 35+ years of experience. Kuber has been an integral
part of Emcure Management team for last 1.5yrs and has done major transformation in API Business. Prior to
Kuber Mahadeo Jagdale President - API Business joining Emcure Kuber was associated with Sekhmet Pharma Ventures Pvt. Ltd. as COO as well as Senior Vice
President with Cipla Ltd. for about 32yrs. Kuber holds a bachelor’s degree in Pharmaceutical Science from the
University of Mumbai as well as he has done Post Graduate Diploma in Management from Delhi University.

With an association of 25 years with the company, Rajesh Nair has worked across HR operations, employee
relations, talent acquisition and management, among other functions. Prior to his current role as President-HR
Emcure, he headed the HR department for Emcure’s Manufacturing facilities, Research and Development (R&D)
Rajesh Nair President – HR
units and support functions units of Emcure. He is an MBA from Savitribai Phule, Pune University. In his other
assignments, he was also associated with Dr. Reddy’s Laboratories, for a brief but impactful stint in 2009, where
he was associated as BU HR Head of the company’s Biologics Development Centre.
Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

Exhibit 72. Shareholding Exhibit 73. IPO details

Particulars Details

IPO price INR 960-1,008

15.6% Listing price INR 1,359

Listing gains 35%

3.1% Fresh issue INR 8bn
3.4%
% Fresh issue 41

OFS INR 11.5bn

% OFS 59
Source: Company, JM Financial

77.9%

Promoter DIIs FIIs Others

Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

Financial Tables (Consolidated)

Income Statement (INR mn) Balance Sheet (INR mn)
Y/E March FY24A FY25A FY26E FY27E FY28E Y/E March FY24A FY25A FY26E FY27E FY28E
Net Sales 66,583 78,960 89,063 100,996 114,664 Shareholders’ Fund 27,787 42,388 55,960 68,143 83,446
Sales Growth 11.2% 18.6% 12.8% 13.4% 13.5% Share Capital 1,812 1,895 1,895 1,895 1,895
Other Operating Income 0 0 0 0 0 Reserves & Surplus 25,976 40,493 54,065 66,249 81,551
Total Revenue 66,583 78,960 89,063 100,996 114,664 Preference Share Capital 0 0 0 0 0
Cost of Goods Sold/Op. Exp 24,754 31,466 34,289 38,378 42,999 Minority Interest 0 0 0 0 0
Personnel Cost 12,921 14,463 16,120 18,179 20,639 Total Loans 20,873 7,317 7,317 7,317 7,317
Other Expenses 16,610 18,342 20,485 22,724 25,226 Def. Tax Liab. / Assets (-) 406 90 90 90 90
EBITDA 12,297 14,689 18,169 21,714 25,799 Total - Equity & Liab. 49,066 49,795 63,368 75,551 90,853
EBITDA Margin 18.5% 18.6% 20.4% 21.5% 22.5% Net Fixed Assets 25,619 26,036 29,389 28,514 27,401
EBITDA Growth 4.1% 19.4% 23.7% 19.5% 18.8% Gross Fixed Assets 32,562 36,453 43,981 47,481 50,981
Depn. & Amort. 3,124 3,841 4,134 4,375 4,612 Intangible Assets 11,010 11,459 11,459 11,459 11,459
EBIT 9,173 10,847 14,035 17,339 21,187 Less: Depn. & Amort. 19,276 23,117 27,251 31,626 36,239
Other Income 570 617 650 700 950 Capital WIP 1,323 1,241 1,200 1,200 1,200
Finance Cost 2,371 1,758 1,610 1,463 1,317 Investments 6,968 4,632 4,632 4,632 4,632
PBT before Excep. & Forex 7,372 9,707 13,075 16,576 20,820 Current Assets 41,076 46,522 58,870 74,870 94,567
Excep. & Forex Inc./Loss(-) 99 104 0 0 0 Inventories 15,251 19,318 20,668 22,606 25,328
PBT 7,471 9,811 13,075 16,576 20,820 Sundry Debtors 18,588 20,022 22,693 24,903 29,844
Taxes 1,997 2,639 3,530 4,393 5,517 Cash & Bank Balances 2,324 1,653 9,428 20,671 32,037
Extraordinary Inc./Loss(-) 0 0 0 0 0 Loans & Advances 0 0 0 0 0
Assoc. Profit/Min. Int.(-) 0 0 0 0 0 Other Current Assets 4,913 5,529 6,082 6,690 7,359
Reported Net Profit 5,474 7,172 9,545 12,183 15,303 Current Liab. & Prov. 24,597 27,394 29,523 32,465 35,747
Adjusted Net Profit 5,474 7,172 9,545 12,183 15,303 Current Liabilities 18,360 20,449 21,907 24,108 26,571
Net Margin 8.2% 9.1% 10.7% 12.1% 13.3% Provisions & Others 6,237 6,945 7,616 8,357 9,175
Diluted Share Cap. (mn) 189.5 189.5 189.5 189.5 189.5 Net Current Assets 16,480 19,128 29,347 42,405 58,820
Diluted EPS (INR) 28.9 37.8 50.4 64.3 80.8 Total – Assets 49,066 49,795 63,368 75,551 90,853
Diluted EPS Growth -4.7% 31.0% 33.1% 27.6% 25.6% Source: Company, JM Financial
Total Dividend + Tax 0 0 0 0 0
Dividend Per Share (INR) 0.0 3.0 0.0 0.0 0.0
Dupont Analysis
Source: Company, JM Financial
Y/E March FY24A FY25A FY26E FY27E FY28E
Cash Flow Statement (INR mn)
Net Margin 8.2% 9.1% 10.7% 12.1% 13.3%
Y/E March FY24A FY25A FY26E FY27E FY28E
Asset Turnover (x) 1.3 1.4 1.4 1.3 1.3
Profit before Tax 7,372 9,707 13,075 16,576 20,820
Leverage Factor (x) 2.0 1.6 1.3 1.2 1.2
Depn. & Amort. 3,124 3,841 4,134 4,375 4,612
Net Interest Exp. / Inc. (-) 2,164 1,667 960 763 367 RoE 21.0% 20.4% 19.4% 19.6% 20.2%

Inc (-) / Dec in WCap. 505 -4,243 -2,444 -1,815 -5,050 Key Ratios
Others 144 6 0 0 0 Y/E March FY24A FY25A FY26E FY27E FY28E
Taxes Paid -2,237 -2,469 -3,530 -4,393 -5,517 BV/Share (INR) 146.6 223.7 295.3 359.6 440.4
Operating Cash Flow 11,072 8,510 12,194 15,507 15,233 ROIC 13.0% 13.6% 17.0% 20.6% 24.1%
Capex -3,071 -4,069 -3,459 -3,500 -3,500 ROE 17.3% 17.3% 18.6% 19.6% 20.2%
Free Cash Flow 8,000 4,441 8,735 12,007 11,733 Net Debt/Equity (x) 0.6 0.1 -0.1 -0.2 -0.3
Inc (-) / Dec in Investments -890 2,592 0 0 0 P/E (x) 47.2 36.0 27.1 21.2 16.9
Others -3,163 537 650 700 950 P/B (x) 9.3 6.1 4.6 3.8 3.1
Investing Cash Flow -7,125 -940 -2,809 -2,800 -2,550 EV/EBITDA (x) 22.2 17.9 14.0 11.2 9.0
Inc / Dec (-) in Capital 77 7,792 0 0 0 EV/Sales (x) 4.1 3.3 2.9 2.4 2.0
Dividend + Tax thereon -827 0 0 0 0 Debtor days 102 93 93 90 95
Inc / Dec (-) in Loans 1,677 -14,058 0 0 0 Inventory days 84 89 85 82 81
Others -2,569 -1,874 -1,610 -1,463 -1,317 Creditor days 88 84 82 82 82
Financing Cash Flow -1,642 -8,140 -1,610 -1,463 -1,317 Source: Company, JM Financial
Inc / Dec (-) in Cash 2,305 -569 7,775 11,243 11,365
Opening Cash Balance -1,765 419 1,653 9,428 20,671
Closing Cash Balance 539 -150 9,428 20,671 32,037
Source: Company, JM Financial

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Emcure Pharmaceuticals 1 August 2025

APPENDIX I

JM Financial Inst itut ional Secur ities Lim ited

Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd. and National Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst - INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +91 22 6630 3030 | Fax: +91 22 6630 3488 | Email: [email protected] | www.jmfl.com
Compliance Officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1743 | Email: [email protected]
Grievance officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1743 | Email: [email protected]

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Definition of ratings
Rating Meaning
Buy Total expected returns of more than 10% for stocks with market capitalisation in excess of INR 200 billion and REITs* and more than
15% for all other stocks, over the next twelve months. Total expected return includes dividend yields.
Hold Price expected to move in the range of 10% downside to 10% upside from the current market price for stocks with market
capitalisation in excess of INR 200 billion and REITs* and in the range of 10% downside to 15% upside from the current market price
for all other stocks, over the next twelve months.
Sell Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* REITs refers to Real Estate Investment Trusts.
Research Analyst(s) Certification
The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:
All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and
No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research
report.
Important Disclosures
This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select
recipient of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written
consent of JM Financial Institutional Securities. This report has been prepared independent of the companies covered herein.
JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
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JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
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Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
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The Research Analyst(s) principally responsible for the preparation of this research report and their immediate relatives are prohibited from buying or selling debt
or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their immediate relatives (as defined under SEBI (Research Analysts)
Regulations, 2014); (a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the
company(ies) covered under this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time
of publication of this report. Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.

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Emcure Pharmaceuticals 1 August 2025

While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or
developments referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may
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JM Financial Institutional Securities Limited Page 39