SMS Pharmaceuticals shares zoom 10% on clean USFDA inspection report

SMS Pharmaceuticals shares rose 10 per cent after it received an Establishment Inspection Report with a No Action Indicated from the USFDA

Shares of SMS Pharmaceuticals rose over 10 per cent on Thursday after the company received an Establishment Inspection Report (EIR) with a No Action Indicated status for its Central Laboratory Analytical Services in Hyderabad. 

 

The pharmaceutical company's stock rose as much as 10.63 per cent during the day to ₹256 per share, the steepest rally since April 23 this year. The stock pared gains to trade 6.4 per cent higher at ₹246.2 apiece, compared to a 0.49 per cent decline in Nifty 50 as of 10:31 AM. 

 

Shares of the company snapped a three-day losing streak and currently trade at 48 times the average 30-day trading volume, according to Bloomberg. The counter has risen 2.5 per cent this year, compared to a 3.8 per cent advance in the benchmark Nifty 50. SMS Pharmaceuticals has a total market capitalisation of ₹2,161.78 crore.   

 

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SMS Pharmaceuticals gets clean USFDA inspection report 

The company announced the successful closure of a United States Food and Drug Administration (USFDA) inspection at its Central Laboratory Analytical Services in Gagillapur, Hyderabad.

 

The inspection, carried out from June 23 to June 25, 2025, concluded with zero Form 483 observations, it said in an exchange filing. The company has now received the Establishment Inspection Report (EIR) with a “No Action Indicated” (NAI) status, confirming the audit’s closure. 

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SMS Pharmaceuticals Q1 results

The pharma company reported a 24.33 per cent year-on-year (Y-o-Y) rise in net profit to ₹20.49 crore for the quarter ended June 2025, compared with ₹16.48 crore in the same quarter last year. Revenue from operations increased 19.22 per cent to ₹196.05 crore, against ₹164.45 crore in the year-ago period.

 

The company commissioned its backwards integration project, marking a critical step in strengthening our supply chain and improving cost efficiencies, P. Vamsi Krishna, executive director, said earlier. "The project has delivered the desired outcomes in quality and performance, and we are now scaling up production. With full backwards integration now in place for our key APIs, we expect to see a meaningful improvement in margins over the next few quarters."  ALSO READ: HDFC Bank emerges as top choice for global EM funds with record ownership 

The company is engaged in the manufacturing of active pharmaceutical ingredients (APIs) and their intermediates. It operates a research and development centre at Gagillapur, Hyderabad, and has manufacturing facilities at Bachupally, Hyderabad, as well as at Kandivalasa village in Vizianagaram district, Andhra Pradesh.

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