SMS Pharma up 8% as arm gets USFDA nod for reformulated Ranitidine tablets

SMS Pharmaceuticals share price today: Pharmaceutical company SMS Pharmaceuticals share price was in demand on Wednesday, with the scrip rallying up to 8.48 per cent to hit an intraday high of ₹297.25 per share.

 

At 10:40 AM, SMS Pharmaceuticals share price was trading 6.77 per cent higher at ₹292.55 per share. In comparison, BSE Sensex was trading 0.73 per cent higher at 85,204.25 levels.

Why did SMS Pharmaceuticals share price rise in trade today?

 

SMS Pharmaceuticals shares climbed in trading today following the announcement that the US Food and Drug Administration (USFDA) has approved reformulated Ranitidine tablets from its associate company, VKT Pharma, in 150mg and 300mg strengths.

 

Ranitidine tablets are prescribed for the treatment of gastroesophageal reflux disease (GERD), peptic ulcers, and other conditions associated with excessive stomach acid.

 

The approval marks the return of this key acid-reducing medication to the US market after a five-year hiatus, SMS Pharmaceuticals said.

 

The USFDA’s approval comes after rigorous safety evaluations and manufacturing enhancements aimed at addressing previous concerns about NDMA impurity formation.

 

The approval is expected to improve patient access to this essential medication for individuals who rely on it to manage various health conditions.  ALSO READ | Sun Pharma sees Golden Cross; other pharma stocks with similar pattern

SMS Pharmaceuticals financial performance 

 

SMS Pharmaceuticals reported robust quarterly results, driven by strong operational execution and strategic initiatives in the September quarter of FY26. Revenue grew 23 per cent year-on-year (Y-o-Y) to ₹242.43 crore, led by higher volumes and market share gains. 

 

Gross margin expanded 30 per cent Y-o-Y, supported by backward integration, while Ebitda rose 54 per cent Y-o-Y to ₹48.38 crore, reflecting the benefits of operating leverage. 

 

Profit after tax (PAT) surged 80 per cent Y-o-Y to ₹25.32 crore, marking a record high for a single quarter. 

 

Operating cash flows remained healthy, underpinning the company’s ongoing capital expenditure plans. 

 

The ₹280 crore capex programme is on track for completion by November 2026, keeping the company aligned with its FY26 outlook.

 

P Vamsi Krishna, executive director of SMS Pharmaceuticals said, “We concluded Q2FY26 on a strong note with 80 per cent PAT growth Y-o-Y. We continued to see strong demand across our diversified portfolio, with market share gains in key APIs driving revenue growth. This quarter marks an inflection point as our backward integration efforts are now driving margin expansion. This has strengthened our value proposition to existing customers and is helping us expand our customer base in regulated markets.”

 

“Our continued focus on product mix optimisation, backward integration, economies of scale and pipeline of new products will enable us to achieve our target of 20 per cent revenue growth and Ebitda margin expansion to 20 per cent in FY26,” Krishna added.  ALSO READ | Patel Engineering rises 5% in trade; what's driving investors' interest?

SMS Pharmaceuticals outlook

 

The company is on track to achieve 20 per cent revenue growth in FY26, with Ebitda margins targeted at 20 per cent. This performance is expected to result in a net asset turnover of approximately 1.6x, placing the company among the industry leaders. 

 

The growth trajectory will be supported by completed backward integration, robust R&D capabilities, advanced plant engineering, a diversified product portfolio, and price stabilisation across key APIs, the company said.

 

Founded in 1990, SMS Pharmaceuticals is an integrated pharmaceutical company specialising in APIs and intermediates. 

 

It operates two advanced manufacturing facilities in Hyderabad and Vizag, with capacities of 200 KL and 3,000 KL. 

 

Backed by strong in-house R&D, the company delivers quality products across multiple therapeutic segments to customers in over 70 countries.