Kashmik Formulation targets ₹100 crore revenue in FY26, eyes IPO

The company currently produces around 25 crore units a month and is expanding its ground and first-floor production facilities to meet rising demand

With a growing emphasis on affordable medicines and export-led growth, Ahmedabad-based Kashmik Formulation is targeting revenue of Rs 100 crore for FY26 — more than double its FY25 topline of Rs 40 crore.

 

The company is planning to boost production capacity and invest in automation as it eyes new markets and future growth.

 

Kashmik Formulation is also considering an initial public offering (IPO) within the next two to three years to scale its market presence and support future growth. 

 

While aiming to be a major player, it does not expect to become a top 20 or top 10 Indian contract manufacturer in the immediate term, considering it part of a longer-term plan.

 

Founded in 2017, the company operates at full capacity with a daily output of 10 million tablets. Kashmik is now investing Rs 20 crore to ramp up capacity by 50 per cent to 15 million tablets per day. The company currently produces around 250 million units a month and is expanding its ground and first-floor production facilities to meet the rising demand.

 

“Our current clients include Cipla and Dr. Lal Pathlabs. At this point, our contract manufacturing capacity is fully utilised, but once the new capacity comes online, we will look to onboard more clients,” said Nilesh Patel, managing director.

 

Branded generics account for nearly 70 per cent of Kashmik’s revenue, with contract manufacturing contributing 20–30 per cent. The company is also stepping up its export focus, aiming to increase the share of exports from the current 20 per cent to 50 per cent over the next few years. Kashmik is in the process of registering its products in semi-regulated markets such as Africa, Myanmar, and Latin America. 

 

“We’re not targeting regulated markets yet, but we’re actively working to expand in semi-regulated geographies. Registration is underway, and that will be a key driver for our export ambitions,” said Patel.

 

To improve operational efficiency, Kashmik is also investing Rs 4–5 crore in packaging automation and AI-driven solutions. While the company is not yet investing heavily in research collaborations, it has plans to set up a new research and development centre in Jammu. A foray into injectables is also on the cards, with a new facility planned within the next 3–5 years.

 

On the pricing front, Kashmik has launched Dapagliflozin, an anti-diabetic drug under its DAPNEC brand, which the company claims is priced approximately 400 per cent lower than competing brands. “It’s a highly competitive space, but we’re targeting volume growth through affordability,” said Patel.

 

Like many Indian pharma companies, Kashmik faces challenges in active pharmaceutical ingredient (API) sourcing, especially due to heavy dependence on China. “Cost remains a major barrier to diversifying away from Chinese APIs. Any disruption in supply from China could hit production significantly,” Patel added. Despite headwinds, the company is optimistic about its growth trajectory.