2025, supported by technology-led investments, resilient services activity and easing financial conditions. Advanced economies recorded moderate growth of 1.9% while Emerging Market and Developing Economies (EMDEs) continued to outperform, registering 4.4% growth driven by strong domestic demand, manufacturing expansion and infrastructure investments.
Global inflation moderated to 4.1% in 2025, supported by easing supply chain disruptions and gradual normalisation in demand patterns, although price pressures remained above central bank targets in several major economies. Monetary policy remained cautious as central banks balanced inflation management with support for economic growth, maintaining relatively tight financial conditions while monitoring liquidity conditions and financial market resilience.
Global trade activity remained resilient, expanding by 5.1% in 2025 as businesses continued to adapt to changing tariff structures and diversify their supply chains. India emerged as a major beneficiary of the China Plus One shift, attracting provisional FDI inflows of USD 81.04 billion in 2025, with manufacturing FDI growing 18% year-on-year to USD 19.04 billion. Indias Production Linked Incentive (PLI) schemes generated committed investments exceeding ?‚?2.16 lakh crore across strategic sectors, steadily positioning the country as a strategic global manufacturing hub.
The global economic outlook for FY2026-27 remains broadly stable. The IMF projects global GDP growth at approximately 3.1% in 2026 and 3.2% in 2027, with inflation expected to moderate from 4.4% to 3.7%. Growth is expected to be underpinned by sustained investment in technology, digital infrastructure and advanced manufacturing. The escalation of geopolitical conflict in the Middle East has introduced renewed volatility.
The pharmaceutical and healthcare sectors are projected to sustain strong structural momentum, driven by rising healthcare expenditure, increasing chronic disease prevalence and expanding access to affordable medicines. For companies operating in the excipients and nutraceutical ingredients space, the operating environment offers robust long-term demand tailwinds alongside near-term challenges from geopolitical tensions and commodity price volatility.
| World (%) | Advanced Economies (%) | EMDEs (%) |
| 2025: 3.4 | FY2025: 1.9 | FY2025: 4.4 |
| 2026P: 3.1 | FY2026P: 1.8 | FY2026P: 3.9 |
| 2027P: 3.2 | FY2027P: 1.7 | FY2027P: 4.2 |
Source: IMF World Economic Outlook, April 2026. Note: Figures correspond to calendar years, not Indias fiscal year.
India continued to reinforce its position as the worlds fastestgrowing major economy during FY2025-26. According to the MoSPIs provisional estimates, Indias real GDP growth was estimated to have grown by 7.7% in FY2025-26 driven by the dual engines of consumption and investment. Private Final Consumption Expenditure (PFCE) rose to 61.5% of GDP, supported by stable employment, improving purchasing power and strengthening rural and urban consumption trends. For industries aligned with pharmaceuticals, healthcare, nutraceuticals and speciality manufacturing, Indias macroeconomic environment remained highly favourable.
Indias industrial sector demonstrated strong expansion, with manufacturing growing by 8.4% during H1 FY2025-26, surpassing the annual estimate of 7.0%. Industrial sector growth is estimated at 6.2% up from 5.9% in FY2024-25, supported by strong domestic demand, public capital expenditure and rising industrial activity. Strengthening industrial momentum, rising pharmaceutical manufacturing and expanding domestic production ecosystems directly support long-term demand for pharmaceutical excipients, speciality ingredients and nutraceutical products - categories central to Sigachis business.
01-47 48-162 163-258 CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS
Inflation moderated during FY2025-26, supported by improved agricultural output and easing food prices. The Reserve Bank of India implemented repo rate cuts and liquidity-enhancing measures, while the banking sector strengthened as asset quality improved. Indias external sector remained resilient, with total exports reaching a record USD 825.3 billion in FY2024-25 and continued momentum during FY2025-26. India also concluded major trade agreements with the United Kingdom, Oman, New Zealand and the European Union, strengthening long-term export opportunities.
Real GDP growth for FY2026-27 is projected at 6.8% to 7.2% supported by resilient domestic demand, infrastructure expansion, manufacturing momentum and continued policy reform. Sustained government focus on healthcare infrastructure, digitalisation and industrial competitiveness is expected to benefit the pharmaceutical, nutraceutical and speciality manufacturing sectors.
The escalation of geopolitical conflict in the Middle East, however, presents a key external risk. As a major crude oil importer, India remains exposed to elevated energy prices, which could widen the current account deficit and add to imported inflation. While the economys broad-based, consumption-led nature provides resilience, a prolonged conflict could moderate near-term growth and affect input costs for manufacturing industries.
GDP Growth (%)
| FY2025-26 | 7.7 |
| FY2026-27P | 6.8-7.2 |
Sources: Economic Survey FY2025-26; IMF World Economic Outlook Update, January 2026.
The global pharmaceuticals market was valued at USD 1,999.24 billion in 2025 and is projected to reach USD 4,035.35 billion by 2034, growing at a CAGR of 8.19%. North America dominated the market with a 44.81% share in 2026. Global Oral Solid Dosage (OSD) formulations continue to dominate, with the market valued at over USD 600 billion and projected to reach USD 800-900 billion by the early 2030s. Within this space, Orally Disintegrating Tablets (ODTs) are gaining traction for their potential to improve patient compliance, with the market valued at USD 15.8 billion and expected to reach USD 31-45 billion at an 8-9% CAGR. The chewable tablet market, valued at over USD 5.4 billion, is projected to reach USD 8.7 billion by 2030. Both segments are directly relevant to Sigachis excipient portfolio.
Market Size (USD billion)
| FY2025 | 1,999.24 |
| FY2034 | 4,035.35 |
(Source: https://www.fortunebusinessinsights.com/impact-of-covid-19-on-pharmaceuticals-market-102685 )
The patent cliff: The 2026-2030 patent cliff offers a roughly USD 236 billion opportunity, with expirations concentrated in oncology, diabetes, immunology and cardiovascular treatment. Each blockbuster losing exclusivity triggers intense generic entry and R&D activity.
Population and ageing dynamics: The global population is projected to reach 8.5 billion by 2030, while life expectancy exceeding 73 years drives sustained demand for treatments for chronic and age-related diseases.
Healthcare cost containment: Generics have become a structural policy tool. Governments, public payers and private insurers actively promote generic substitution, creating a consistent demand driver that benefits excipient suppliers serving generic formulations.
Emerging market expansion: Markets in Asia-Pacific, led by China and India, are becoming growth hotspots, supported by improved healthcare access, favourable regulations and established manufacturing hubs.
Indias pharmaceutical industry ranks third globally by production volume and 14th by value, supported by nearly 3,000 drug companies and over 10,000 manufacturing units. India is the worlds largest supplier of generic medicines, accounting for around 20% of global generic drug supply by volume. Indias API ecosystem is evolving from a volume-based manufacturing base into a value-driven hub for complex APIs and biologics, supported by PLI-led capacity expansion exceeding 55,000 metric tonnes annually.
Market Size (USD billion)
| FY2025 | 68.38 |
| FY2034 | 174.67 |
2026-2030 patent cliff opens large therapeutic categories to generic entry, and Indian manufacturers are positioned to capture a significant share. India already supplies roughly 40% of US generics and 50% in Africa.
Rising pharmaceutical exports: Indias pharmaceutical exports are poised to reach USD 60-65 billion by 2030, with the API and generic formulations market set for significant growth.
Supply chain realignment away from China: China currently accounts for nearly 35% of outsourced API manufacturing. Shifts in global supply chains, including policies such as the US Biosecure Act, are creating structural opportunities for Indian manufacturers.
Move up the value chain: The industry is shifting from volume-driven manufacturing to innovation-driven growth, with a focus on biosimilars, biologics and speciality medicines. The Union Budget 2026-27 aims to pivot the sector toward high-value manufacturing, including the Biopharma SHAKTI programme with an outlay of ?‚?10,000 crore over five years.
Resilient domestic demand: The Indian Pharmaceutical Market closed 2025 at around ?‚?2,40,672 crore with 8.1% value growth and is expected to grow 7.8-8.1% in 2026, driven by pricing, new products, branded generics and chronic therapies.
Growing CDMO opportunities: India is emerging as a preferred CDMO destination, with the market projected to grow at a 14-15% CAGR through 2030 as global pharmaceutical companies diversify their supply chains.
The Indian pharmaceutical market was valued at USD 68.38 billion in 2025 and is projected to reach USD 174.67 billion by 2034, growing at a CAGR of 10.98%. Strong government policy support through PLI schemes, expanding healthcare access through the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (16,912 Jan Aushadhi Kendras operational, with a target of 25,000 by March 2027), and the strategic focus on biopharma and biologics in the Union Budget FY2026-27 underpin the sectors growth trajectory.
Microcrystalline cellulose (MCC) is a key segment within the excipients and speciality ingredients space, drawing steady demand from the pharmaceutical, food and beverage, cosmetics and personal care industries. The global MCC market was valued at USD 1,255.1 million in 2025 and is projected to reach USD 2,267.5 million by 2033, reflecting a CAGR of 7.8%. Asia Pacific led the market with a 37.8% revenue share, with the pharmaceutical segment contributing 33.9% of global revenue in 2025.
Demand is driven primarily by the pharmaceutical and processed food industries. Rising consumer preference for natural, clean-label and plant-based ingredients is accelerating adoption. As a plant-derived, non-digestible fibre, MCC aligns well with these preferences. The market is positioned for strong growth, supported by rising demand, technological advancement and favourable regulatory developments. Competitive intensity is likely to increase, shaped by new entrants, industry consolidation and technological innovation. In this environment, a sustained focus on innovation will be critical to driving differentiation.
Market Size (USD billion)
| FY2025 | 1,255.1 |
| FY2033 | 2,267.5 |
(Source: https://www.grandviewresearch.com/industry-analysis/microcrystalline-cellulose-market-report )
Microcrystalline cellulose is a purified, partially depolymerised cellulose derived primarily from wood pulp or cotton linters. It functions as a binder, stabiliser, emulsifier, texturiser and bulking agent across multiple industries. In India, MCC plays a critical role in pharmaceutical manufacturing, particularly in oral solid dosage formulations. Beyond pharmaceuticals, it is increasingly used in processed foods, dairy alternatives, cosmetics and nutraceuticals, owing to its versatility, biodegradability and plant-derived nature.
Market Size (USD billion)
| FY2024 | 138.6 |
| FY2031 | 223.9 |
Evolution of Indias Pharmaceutical Industry
| 1970 | Patent Act spurs growth by allowing process patents |
| 1990S | Indian companies gain global prominence |
| 2005 | TRIPS compliance shifts focus to innovation |
| 2024 | Indias pharmaceutical market valued at USD 50 billion |
| 2024-25 | Pharmaceutical market grows by 8.4% |
| 2025-26 | Union Budget allocates USD 602.9 million to pharmaceuticals |
| 2030 | India aims for USD 130 billion pharmaceutical market value |
| 2047 | India aims for USD 450 billion pharmaceutical market value |
Growth is being driven by the expansion of Indias pharmaceutical manufacturing ecosystem, rising health and wellness consumption, the shift toward plant-based and clean-label formulations, broadening nutraceutical applications, growing adoption in personal care and cosmetics, innovation in advanced drug delivery (including 3D printing of dosage forms), a supportive regulatory environment including GRAS status from the FDA and EFSA, and increasing adoption of sustainable and green manufacturing practices.
The industry faces high production and processing costs driven by specialised equipment and energy-intensive processes; stringent regulatory requirements that entail significant compliance investments; competition from alternative cellulose derivatives such as HPMC and CMC; and raw material supply volatility due to dependence on wood pulp and cotton-derived cellulose.
The India MCC market was valued at USD 138.6 million in 2024 and is projected to reach USD 223.9 million by 2031, growing at a CAGR of 7.1%. Future growth is expected to be supported by expanding pharmaceutical manufacturing, rising nutraceutical consumption, increasing preference for sustainable ingredients, and innovation in nanocellulose-based applications.
Microcrystalline Cellulose contributes 70-75% of total revenue and reinforces Sigachis leadership as one of the largest MCC manufacturers globally. MCC enables strong customer stickiness due to stringent quality requirements, high regulatory standards and long-standing customer relationships, resulting in significant repeat business. The segment demonstrated operational resilience during the 2025 Hyderabad incident by efficiently reallocating production across facilities. Beyond its financial contribution, MCC acts as a gateway to regulated global markets and supports cross-selling opportunities for higher-margin products such as CCS, coatings and speciality excipients, strengthening Sigachis long-term growth.
(Source: https://mobilityforeights.com/product/india-microcrystalline-cellulose-market )
The global food and beverage market is projected to reach approximately USD 9.79 trillion in 2026 and grow to USD 11.78 trillion by 2031, reflecting a CAGR of 3.75%. The global nutritional market is expected to grow at a faster rate, with a CAGR of 10.6% rising from approximately USD 731.9 billion in 2025 to USD 1,819.6 billion by 2034. Structural shifts toward wellness, convenience and sustainability continue to reshape demand.
Asia-Pacific led the global food and beverage market in 2025 with approximately 40.88% share, while the Middle East and Africa region is expected to register the fastest growth at a CAGR of 5.24% through 2031.
Key demand drivers include rising demand for functional and protein-rich products; a growing focus on gut health and mental wellness; the shift toward natural, plant-based and clean-label nutrition; convenience and occasion-based consumption; sustainability and responsible sourcing; and digital retail and packaging innovation. Companies investing in advanced traceability systems, food safety infrastructure and quality assurance capabilities are expected to gain long-term competitive advantage.
Market Size (USD billion)
| FY2026 | 9.79 |
| FY2031 | 11.78 |
(Source: https://www.mordorintelligence.com industry-reports/food-and-beverage-market)
The Indian food and beverages market was valued at approximately USD 437.6 billion in 2024 and is projected to reach around USD 875.0 billion by 2030, growing at a CAGR of 12.5%. Growth is being driven by the expansion of restaurants, fast-food chains and food delivery platforms; rising health consciousness fuelling demand for organic and natural products; and the growing popularity of ready-to-eat foods. The expansion of Direct-to-Consumer brands, the adoption of plant-based alternatives, and the integration of AI into food processing are expected to drive the next phase of growth.
(Source: https://www.jadhavarbusinessintelligence.com/marketresearch-report/indian-food-and-beverages-market/1082 )
The global nutraceuticals market is in a sustained growth phase, underpinned by a structural shift toward preventive healthcare. Asia-Pacific led the market in 2025 with a 38.9% revenue share. Indias nutraceuticals market was valued at USD 8.93 billion in 2025 and is projected to reach USD 23.09 billion by 2034, reflecting a CAGR of 11.14% well ahead of the global pace. A distinctive driver is the convergence of traditional and modern science: Ayurvedic ingredients validated through modern nutritional research are widening consumer adoption. Policy support through schemes such as PMKSY and PMFME, progressive regulatory reform under FSSAI and rising R&D investment further reinforce the sectors competitiveness.
(Source: https://www.imarigroup.com/india-nutraceuticals-market https://www.grandviewresearch.com/industry analysis/nutraceuticals-market)
The Indian cosmetics market was valued at USD 21.50 billion in 2025 and is projected to reach USD 43.85 billion by 2033, growing at a CAGR of 9.3%. Consumer preferences are shifting toward clean, natural and ingredient-transparent products. The
sustainable beauty products market is expected to grow from USD 18.4 billion in 2025 to USD 32.7 billion by 2032. MCCs plant-derived, absorbent and stabilising properties position it well for growing adoption in skincare and cosmetic formulations - an adjacency that Sigachi is actively developing.
(Source: https://www.grandviewresearch.com/industry-analysis/india-cosmetics-market-report )
These structural shifts across the pharmaceutical, food, beverage, nutrition and personal care landscape align closely with Sigachis core capabilities and product portfolio. As one of Indias largest manufacturers of microcrystalline cellulose and a diversified producer of excipients, food and nutrition ingredients, APIs and speciality solutions, the Company is positioned at the intersection of several demand drivers.
Clean-label and plant-based demand: MCC is a plant-derived, label-friendly ingredient widely used as a stabiliser, texturiser and bulking agent in processed and functional foods. Rising consumer preference for natural and minimally processed ingredients directly supports demand for the Companys food-grade excipients.
Functional and nutraceutical growth: Sigachis food and nutrition portfolio, including vitamin-mineral blends and functional ingredient solutions, is aligned with the expansion of fibre-enriched foods, meal replacements and wellness-focused formulations.
Pharmaceutical and nutraceutical convergence: Growth in functional and preventive-health products increasingly draws on pharmaceutical-grade quality standards. The Companys established excipient expertise, multi-grade MCC range and co-processed high-functionality excipients position it to serve customers across this widening pharma-nutra spectrum.
Quality, compliance and sustainability: Tightening requirements around food safety, traceability and sustainable sourcing favour established, compliance-led manufacturers. Sigachis regulatory certifications, R&D infrastructure, and sustainable manufacturing practices enable it to meet evolving expectations across geographies.
Global reach: With exports to over 65 countries and a presence across multiple regions, the Company is positioned to participate in growth across both mature and high-growth emerging markets, including Asia-Pacific, the Middle East and Africa.
Sigachi Industries Limited, incorporated in 1989, is a leading global manufacturer of pharmaceutical excipients and active pharmaceutical ingredients (APIs) and one of the largest producers of microcrystalline cellulose (MCC) in India, serving over 500 customers across 65+ countries.
The Company offers a diversified portfolio including high-quality Excipients, Co-processed Excipients, Pre-formulated Excipients, Polymer Blends, APIs and Intermediates, Vitamin-Mineral Nutrient Blends and O&M Services. With 70-75% of revenue derived from the pharmaceutical and nutraceutical segments. It operates advanced manufacturing facilities across Telangana, Gujarat and Karnataka, with a current MCC capacity of 18,000 MTPA and exports accounting for around 69% of production. Ongoing expansion at Dahej-SEZ unit is expected to increase overall MCC capacity to 30,000 MTPA. The Company sells its cellulose-based products under the following brands; HiCel, AceCel, CoatCel, GloCel, BARETab.
HiCel?„? AceCel® CoatCel® GloCel® BARETab®
Pharma Portfolio Components
| Spheres | Thickeners and stabilisers | Pre formulated excipients | Super disintegrants | Functional fillers/carriers |
| Spheres for drug delivery and formulation. | Substances increasing viscosity and preventing degradation. | Ready-to-use excipient blends for efficient manufacturing. | Agents promoting rapid tablet breakdown for quick drug release. | Inert substances adding bulk and aiding drug delivery. |
| High functionality excipients | Binders | Lubricants | ||
| Excipients with enhanced properties for pharmaceutical applications. | Substances holding ingredients together in a tablet. | Substances reducing friction during tablet manufacturing. |
01-47 48-162 163-258 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS
FY2025-26 was a defining year for the Company. A fire incident at the Pashamylaram unit, Hyderabad on June 30, 2025, resulted in the tragic loss of 54 team members and 28 members sustaining injuries. The incident also resulted in the temporary suspension of 6,400 MTPA of MCC capacity - approximately 29% of the Companys installed base. The Company responded with immediate humanitarian support, activated production reallocation protocols across its Dahej and Jhadadia facilities, and initiated a comprehensive safety and operational reset. The Pashamylaram facility remains subject to judicial proceedings; management has adopted a zero-incremental-capital-expenditure policy for the site pending final judicial clearance.
Strategically, the Company pivoted its growth trajectory decisively toward the Dahej SEZ, fast-tracking a 12,000 MTPA MCC expansion (capex: ?‚?106 crore) to scale total capacity to 30,000 MTPA by Q2 FY 2027-28.
FY2025-26 marked a fundamental inflection point in Sigachis journey. The Pashamylaram incident of June 30, 2025 brought an unprecedented human and operational challenge for the organisation and required management to immediately recalibrate its priorities. The immediate focus was on supporting affected families and employees, ensuring business continuity, strengthening safety across operations and protecting customer commitments.
MCC Revenue Trends (?‚? in Million)
| FY2022 | 2,266 |
| FY2023 | 2,603 |
| FY2024 | 3,015 |
| FY2025 | 4,092 |
| FY2026 | 3,364 |
Resilience: The Companys multi-location manufacturing footprint enabled production to be progressively reallocated across its Gujarat facilities, allowing Sigachi to maintain continuity of supply to a significant part of its customer base despite the loss of capacity at Pashamylaram.
Reset: The incident led to a comprehensive reassessment of safety, operating processes and organisational controls. The Company initiated enhanced safety audits, process revalidation, independent reviews and stronger operating protocols across manufacturing locations, consciously prioritising safety and compliance over short-term capacity utilisation.
Rebuild: Management subsequently focused on rebuilding operating reliability, customer confidence, financial discipline and organisational capability. The decision to accelerate capacity creation at Dahej represents an important part of this strategy, while initiatives in working capital, portfolio diversification and regulatory-market access are intended to strengthen the Companys underlying business model.
Growth: As the Company moves beyond the immediate recovery phase, its strategic direction is increasingly centered on disciplined and diversified growth across MCC and value-added excipients, APIs, Food & Nutrition and O&M. The objective is not merely to restore the pre-incident operating position, but to build a safer, more resilient and increasingly diversified enterprise capable of sustainable long-term growth.
Revenue Break-up (FY26) (%)
| Cosmetics | 5 |
| Food & Nutra | 20 |
| Pharma | 75 |
Sigachi is one of the largest MCC manufacturers in India, with established leadership in the excipients space and a diversified portfolio spanning MCC, APIs, vitamin-mineral blends, film coatings and polymer blends. The Company serves over 500 customers across 65+ countries, with exports accounting for approximately 69% of production. Its quality certifications - including USFDA, WHO-GMP, EXCIPACT, GAIN and ISO standards - create high switching costs for pharmaceutical customers and reinforce long-term relationships. Multi-facility operations across Gujarat, Telangana and Karnataka provide geographic diversification and demonstrated resilience during the FY2025-26 disruption. A strong five-year growth track record (revenue CAGR of 29%, EBITDA CAGR of 35%) validates the underlying business model.
Revenue concentration remains elevated, with MCC contributing 70-75% of total revenue, creating dependence on a single product category. The Pashamylaram incident exposed concentration risk across the manufacturing footprint, with the facility remaining subject to judicial proceedings and to capital being frozen. The API segment, while strategically important, is still scaling from a £60 crore revenue base. Working capital management has been a persistent area of improvement, with 193 days of working capital at the beginning of FY2025-26 and elevated debtor and inventory cycles. The Companys credit rating was downgraded during the year due to Pashamylaram Fire Incident.
2026-2030 patent cliff, valued at approximately USD 236 billion, is expected to drive significant demand for generic formulations and, consequently, for pharmaceutical excipients. The Dahej SEZ expansion (capex: ?‚?106 crore) to 30,000 MTPA represents a 66% capacity increase, positioning Sigachi to capture this demand while securing SEZ tax benefits and export incentives. The Crosarmellose Sodium (CCS) facility at Dahej (capex: ?‚?90 crore; 1,800 MTPA; commercialisation Q2 FY2027-28) is a strategic value multiplier, commanding pricing 2-3x higher than standard MCC with margins exceeding 20%. Entry into regulated European markets through EDQM CEP approvals opens a high-value growth corridor. The cystic fibrosis API - with a patent valid until 2039 - creates a potential 11-plus-year runway of recurring, high-margin revenue in regulated markets once CEP filings are finalised. The NUENEX nanofiber partnership with Respilon Group represents a high-value, innovation-led growth vector. Rising global demand for clean-label, plant-based and sustainable ingredients across food, nutraceutical and cosmetics sectors expands the addressable market for MCC beyond pharmaceuticals.
Competition from alternative cellulose derivatives such as HPMC and CMC, which may offer functional or cost advantages in certain applications, could erode MCC market share over time. Raw material supply volatility - driven by dependence on wood pulp and cotton-derived cellulose, climate factors and forestry regulations - presents input cost risk. Increased competitive intensity from Chinese MCC manufacturers, who benefit from economies of scale and lower input costs, could put pressure on realisations in export markets. Evolving regulatory requirements across multiple jurisdictions involve significant compliance investment and could affect product development timelines. Prolonged geopolitical disruption, particularly in the Middle East, could elevate energy prices, freight costs and marine insurance, compressing margins for an export-oriented manufacturer.
Sigachi Industries segmental performance in FY2025-26 was shaped by the Pashamylaram fire incident in Q1, leadership-related exceptional charges in Q3, and a rigorous safety-first operational recalibration that prioritised compliance over near-term throughput. These events led to a rebalancing of the revenue mix, margin pressures in the core business and significant non-recurring charges. The Company recorded an annual MCC sales volume of 14,357 MT at a capacity utilisation of approximately 76% against a pre-incident benchmark exceeding 90%. Exports contracted from 66% to 55% of total revenue as capacity constraints limited the Companys ability to service certain global accounts at full volume.
The MCC segment remains the Companys primary revenue driver. In FY2025-26, the segment generated revenue of ?‚?336.40 crore, recording volumes of 14,357 MT at an average realisation of ?‚?234.31 per kg. Export revenue contributed approximately ?‚?250.32 crore. High-margin speciality and co-processed grades accounted for 48% of volume, providing a cushion against price sensitivity on standard grades.
The shutdown of Pashamylaram led to production reallocation to Gujarat units, with higher logistics costs, raw material expenses and duty impacts compressing margins through the year. Capacity utilisation dipped to 75% during the intensive safety audit and re-validation phase. While capacity constraints forced some customers to activate secondary and tertiary supplier arrangements, Sigachis preferred "Vendor 1" status remains intact, and the Company is well-positioned to reclaim these volumes as the 12,000 MTPA Dahej expansion comes online.
The API segment gained meaningful traction as a strategic growth driver, generating approximately ?‚?60 crore in revenue in FY2025-26 and contributing around 12% to the revenue mix. The Trimax API facility at Raichur is the focal point of the API strategy. It has filed four CEPs, with the Metformin CEP for European markets receiving approval - a milestone signalling the Companys ability to penetrate highly regulated geographies. For FY2026-27, the API segment is projected to scale to over ?‚?100 crore in revenue, increasing its contribution to 18-20% of the total mix.
The O&M segment delivered stable, consistent performance, recording a revenue of ?‚?53.44 crore and operating at margins of 21-22%. The segment recently secured terms of reference for a new bulk drug unit in Andhra Pradesh, positioning it as a scalable service platform that provides high-margin stability and de-risks the core MCC businesss capital-intensive nature.
The allied trades segment saw a temporary increase in contribution due to the MCC disruption, as the Company partially offset the capacity shortfall by leveraging its food nutrition and shortfall portfolio.
FY2025-26 was an exceptional year in the truest sense of the term. The Companys financial performance reflects the interplay of three forces: robust underlying demand, as evidenced by strong pre-incident revenue momentum; the operational and humanitarian impact of the Pashamylaram incident; and the recognition of significant non-recurring exceptional items that prioritised balance sheet integrity over near-term profitability.
Revenue from Operations (?‚? in Mn)
| FY2025-26 | 4,778 |
| FY2024-25 | 4,882 |
| FY2023-24 | 3,989 |
| FY2022-23 | 3,020 |
| FY2021-22 | 2,503 |
EBITDA (in Mn)
| FY2025-26 | 537 |
| FY2024-25 | 1,120 |
| FY2023-24 | 766 |
| FY2022-23 | 587 |
| FY2021-22 | 531 |
PAT (in Mn)
| FY2025-26 | (828) |
| FY2024-25 | 705 |
| FY2023-24 | 572 |
| FY2022-23 | 436 |
| FY2021-22 | 400 |
Cash Flow from Operations (in Mn)
| FY2025-26 | 43 |
| FY2024-25 | 269 |
| FY2023-24 | 129 |
| FY2022-23 | 290 |
| FY2021-22 | 59 |
Gross Profit (in Mn)
| FY2025-26 | 2,100 |
| FY2024-25 | 2,275 |
| FY2023-24 | 1,727 |
| FY2022-23 | 1,392 |
| FY2021-22 | 1,118 |
EBITDA Margin (%)
| FY2025-26 | 11.24 |
| FY2024-25 | 22.38 |
| FY2023-24 | 19.20 |
| FY2022-23 | 19.43 |
| FY2021-22 | 21.21 |
PAT Margin (%)
| FY2025-26 | (17.32) |
| FY2024-25 | 14.09 |
| FY2023-24 | 14.34 |
| FY2022-23 | 14.43 |
| FY2021-22 | 15.98 |
| FY2025-26 | 9.85 |
| FY2024-25 | 16 |
| FY2023-24 | 16 |
| FY2022-23 | 19 |
| FY2021-22 | 22 |
Revenue: Q1 FY2025-26 revenue of ?‚?1,282 million represented 33.99% year-on-year growth, validating strong underlying demand ahead of the incident. The Pashamylaram shutdown imposed a projected revenue headwind of approximately ?‚?600 million across subsequent quarters. Capacity utilisation dipped to 75-80% during the intensive safety revalidation phase, then recovered to approximately 75% by Q4. Full-year sales volume of MCC stood at 14,357 MT. Revenue from Operations dropped from ?‚?488 crore in FY25 to ?‚?478 crore in 2025-26. Also, exports contracted from 66% to 55% of total revenue as capacity constraints limited the Companys ability to service certain global accounts at full volume.
Margins: EBITDA margins came under pressure as the Company absorbed higher logistics costs from production reallocation to Gujarat, elevated raw material expenses and duty impacts following the loss of the SEZ-proximate Hyderabad capacity. They compressed from 22.31% in Q4 FY2024-25 to 4.86% in Q3 FY 2025-26, reflecting the cumulative impact of capacity disruption, logistical inefficiencies and the operational slowdown during safety audits. Q4 saw the beginning of margin recovery, with EBITDA of ?‚?15.4 crore, demonstrating the re-emergence of operational leverage as capacity utilisation stabilised.
Exceptional items and balance sheet de-risking: Management prioritised long-term balance sheet integrity over near-term profitability by recognising the full weight of extraordinary items upfront. In Q1, the Company recognised ?‚?1,210 million in provisioning related to the Pashamylaram incident. In Q4, an exceptional item of ?‚?1,182 million was recorded in connection with leadership transition and organisational restructuring.
The Company adhered to Ind AS 16, recognising estimated liabilities immediately while deferring insurance recoveries until claims are formally settled. This conservative approach ensures that lingering liabilities do not compromise FY2026-27 recovery efforts.
Insurance recovery profile: The Company holds a comprehensive Business Interruption and Loss of Profit policy covering operating profits for up to 12 months, with a total contractual coverage of ?‚?25.0 crore. Expected business interruption with the 12-month review period commencing from July 2026.
Profitability: The combined effect of revenue headwinds and exceptional charges resulted in reported net losses in Q1 (?‚?1,010 million) and near-breakeven in Q3 (?‚?0.16 million loss), with a net profit of ?‚?105 million in Q2. Q4 demonstrated the beginning of the recovery trajectory, with EBITDA of ?‚?15.4 crore providing a baseline for FY2026-27 guidance. These reported figures mask the underlying operational viability, as evidenced by the Companys five-year CAGRs of 29% in revenue, 35% in EBITDA and 28% in PAT. On an annual basis, the company reported a Net Loss of ?‚?82.8 crore, compared with a Net Profit of ?‚?70.5 crore in the previous year.
Balance sheet and capital structure: The Company has no long-term debt and maintains approximately ?‚?135 crore in short-term working capital borrowings. Working capital management remained a key focus, with a targeted initiative to reduce working capital days from the 193-day baseline to a more efficient level. The Companys credit rating was downgraded during FY2025-26 due to Pashamylaram fire incident Restoration of the credit rating is a primary priority for FY2026-27, supported by the Q4 profit recovery and the projected FY2026-27 capacity ramp-up. Management is also restructuring the debt profile, transitioning from heavy reliance on short-term working capital toward a more balanced funding mix of internal accruals, term debt and potential equity.
Debtors Turnover (Days)
| FY2025-26 | 171 |
| FY2024-25 | 125 |
| Change | 36.8% |
Inventory Turnover (Days)
| FY2025-26 | 124 |
| FY2024-25 | 136 |
| Change | (8.82)% |
Current Ratio (Times)
| FY2025-26 | 1.44 |
| FY2024-25 | 2.13 |
| Change | (32.39)% |
Debt-Equity Ratio (Times)
| FY2025-26 | 0.26 |
| FY2024-25 | 0.19 |
| Change | 36.84% |
Operating Profit Margin (%)
| FY2025-26 | 9.14 |
| FY2024-25 | 19.22 |
| Change | (52.44)% |
EBITDA Margin (%)
| FY2025-26 | 11.24 |
| FY2024-25 | 22.38 |
| Change | (49.77)% |
Net Profit Margin (%)
| FY2025-26 | (17.32) |
| FY2024-25 | 14.09 |
| Change | (222.92)% |
Return on Net Worth (Before exceptional items) (%)
| FY2025-26 | 9.85 |
| FY2024-25 | 16.45 |
| Change | (40.12)% |
The year-on-year movement in key financial ratios primarily reflects the operational disruption following the Pashamylaram incident, lower capacity utilisation, increased logistics and operating costs arising from production reallocation, elevated receivable cycles and the impact of exceptional circumstances during FY2025-26. Management has initiated focused measures towards improving working-capital efficiency, restoring operating margins and strengthening cash generation during FY2026-27.
Working-capital efficiency remained an important area of management focus during FY2025-26. The operating disruption during the year, changes in production and customer servicing patterns, and the broader impact of the incident on business operations contributed to an elongation of the Companys cash-conversion cycle. Debtor days increased from 125 days in FY2024-25 to 171 days in FY2025-26, while inventory days improved from 136 days to 124 days.
Management recognises that sustainable growth must be accompanied by stronger conversion of operating earnings into cash. Accordingly, FY2026-27 will have an increased focus on receivables management, customer credit discipline, inventory optimisation, procurement planning and closer alignment between sales, production and collections.
The Company is also evaluating its funding mix with the objective of progressively reducing excessive dependence on short-term working-capital borrowings and creating a more balanced structure comprising internal accruals and appropriately structured long-term funding for growth capital expenditure.
Improvement in cash conversion and working-capital productivity will therefore remain an important management priority alongside revenue growth and margin restoration during FY2026-27.
The Company has followed the accounting standards prescribed under Section 133 of the Companies Act, 2013, consistently in the preparation of its financial statements. There were no deviations from the prescribed accounting treatment during the year.
Sigachi Industries is strengthening its research and development capabilities as part of its strategic transition into a fully integrated pharmaceutical company, with a clear focus on innovation, product development and entry into regulated global markets.
A key milestone is the commissioning of the new API R&D Center in Hyderabad, which became fully operational in Q2 FY2025-26. The facility brings together API development, analytical capabilities and innovation under one roof, enabling faster product development, improved speed-to-market and enhanced readiness for regulated market entry. The center is focused on supporting multiple Certificate of Suitability (CEP) filings to expand the Companys global footprint.
On the innovation front, the Company is actively advancing its product pipeline across multiple areas. Sigachi has partnered with Respilon Group S.R.O. to develop advanced drug delivery systems using nanofiber technology (NUENEX). It continues towards the advancement of a new APIs combination for cystic fibrosis and expected to be a significant revenue contributor post-commercialisation. The Company is expanding its presence in the excipients business by offering optimised polymer blends and film-coating solutions tailored to meet diverse customer requirements Sodium (CCS) facility at Dahej, expected to be commissioned by Q2 FY2027-28.
The Companys R&D application lab at Dahej is accredited by the Department of Science and Industrial Research (DSIR). Sigachi holds an approved CEP for Metformin from the European Directorate for the Quality of Medicines (EDQM), with several additional filings in progress. As of FY2025-26, its IP portfolio includes 46 registered trademarks, an active patent pipeline focused on performance-oriented in-house technologies, and multiple CEPs - reflecting a sustained commitment to innovation and regulatory excellence.
Sigachi Industries places strong emphasis on quality and regulatory compliance as a core pillar of its business. Its manufacturing facilities are certified to leading pharmaceutical and quality standards, including USFDA, WHO-GMP, GMP, SGMP and EXCIPACT, as well as management and safety standards, including ISO 9001:2015, ISO 14001 and ISO 45001. In its food and nutrition segment, the Company holds certifications including FSSAI, FSSC 22000, HACCP, Halal and Kosher. Sigachi achieved the GAIN (Global Alliance for Improved Nutrition) Audit Certification in 2025.
Quality is a key competitive advantage, creating high switching costs for customers. Pharmaceutical manufacturers are typically reluctant to change excipient suppliers, as even a low-cost excipient can significantly impact the quality and efficacy of a high-value API product. This reinforces long-term customer relationships and supports pricing stability.
To enhance its presence in regulated markets such as the US and Europe, Sigachi is actively pursuing multiple EDQM approvals, with additional CEP filings underway beyond the approved Metformin CEP. The new API R&D center in Hyderabad integrates advanced analytical capabilities to accelerate regulatory readiness.
Following the June 2025 incident at its Pashamylaram facility, Sigachi undertook a comprehensive quality and safety reset, pivoting from a compliance-based safety model to proactive safety leadership. This transformation was implemented through a multi-layered audit architecture: continuous internal self-assessments to identify and neutralise latent risks within production lines; third-party industrial safety audits to ensure impartial compliance with international standards; and open-door audit protocols for global formulation customers, specifically targeting safety equipment and emergency response protocols.
Specific measures included NFPA 660-aligned safety protocols across all manufacturing assets, installation of pressure-venting and interlock systems, enhanced Dust Hazard Analysis (DHA) across all powder-handling sections, and refined environmental controls and preventive maintenance cycles. The Dahej and Jhagadia facilities underwent rigorous independent safety and quality re-audits. This intense focus on safety resulted in a tactical dip in capacity utilisation to 75-80% during the re-validation phase. This deliberate trade-off has created a future-ready manufacturing backbone built on validated, resilient protocols.
Beyond physical and process-safety interventions, the Company is strengthening the governance architecture through which safety is owned, reviewed and continuously improved. The objective is to progressively move safety from a predominantly compliance-driven framework towards a culture of proactive risk identification, clear accountability and prevention.
Safety responsibilities are being reinforced across organisational levels, from operators and supervisors to plant leadership and senior management. Greater emphasis is being placed on competency-based deployment, structured induction and training, periodic assessment of personnel operating critical processes and equipment. Management of Change protocols, closure of audit observations, preventive maintenance and emergency preparedness.
The Company is also strengthening the use of independent safety assessments and periodic management reviews to provide additional assurance on the effectiveness of plant-level controls. Leading indicators, including closure of safety observations, training and competency compliance, preventive-maintenance adherence, near-miss reporting and corrective-action closure, are intended to complement conventional lagging safety indicators.
Through these measures, Sigachi aims to institutionalise safety as a management responsibility and operating discipline embedded across its manufacturing organisation, rather than viewing safety solely as a statutory or functional requirement.
The Board and management continuously assess and monitor risks that could affect the Companys operations, financial performance and long-term strategic objectives. The following key risks have been identified:
Operational and safety risk: The June 2025 fire incident at the Pashamylaram facility underscored the criticality of safety in chemical and pharmaceutical manufacturing. The Company has responded with a comprehensive safety overhaul, including NFPA 660 alignment, enhanced dust hazard analysis and independent re-audits across all facilities. The risk of operational disruption remains inherent in manufacturing operations and is mitigated through multi-facility redundancy, Business Interruption insurance and the ongoing expansion at Dahej.
Revenue concentration risk: MCC contributes 70-75% of total revenue. While the Company is actively diversifying into APIs, O&M services and food and nutrition ingredients, a significant adverse development in the MCC market could disproportionately affect financial performance. The strategic target of a 75% MCC / 25% API-and-others revenue mix within 24 months is designed to address this concentration.
Raw material risk: Dependence on wood pulp and cotton-derived cellulose exposes the Company to fluctuations in raw material availability and pricing. Climate-related factors and forestry regulations may influence long-term supply stability. The Company mitigates this through diversified sourcing and prudent inventory management.
Foreign exchange risk: With exports accounting for approximately 55% of production, the Company is exposed to currency fluctuations. Adverse movements in the Indian Rupee against the US Dollar and other currencies could impact realisations and margins.
Regulatory and compliance risk: The Company operates across multiple jurisdictions with varying regulatory requirements. Changes in pharmaceutical, food safety or environmental regulations or adverse outcomes from regulatory inspections could affect market access and require additional compliance investment.
Competitive risk: The global MCC market faces increasing competitive intensity from Chinese manufacturers, new entrants and alternative cellulose derivatives. Sustained investment in quality, innovation and regulated market access is essential to maintaining differentiation and pricing power.
Geopolitical and macroeconomic risk: Escalation of conflict in the Middle East, trade policy shifts and global economic slowdown could affect export demand, freight costs, energy prices
01-47 48-162 163-258 CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS
and supply chain stability. As an export-oriented manufacturer, the Company remains exposed to global trade disruptions.
Capacity ramp-up risk: The Dahej MCC expansion (12,000 MTPA; capex ?‚?106 crore) and the CCS facility (1,800 MTPA; capex ?‚?90 crore) represent significant capital commitments totalling approximately ?‚?200 crore. Delays in commissioning, cost overruns or lower-than-anticipated capacity utilisation could affect return on capital. Management anticipates a "H2 loading" profile in FY2026-27, with new facilities beginning at approximately 30% utilisation and ramping to 50%+ in the second half.
Insurance recovery risk: While the Company holds comprehensive insurance policies, the timing, quantum and certainty of insurance recoveries remain subject to the claims settlement process.
Credit rating risk: The Companys credit rating was downgraded during FY2025-26 following due to Pashamylaram fire incident.
At Sigachi Industries, the workforce is central to the Companys ability to innovate, maintain excellence in quality and deliver sustainable growth. The Company views its 1,800+ employees as strategic partners in advancing its vision of improving global health and well-being through responsible pharmaceutical solutions.
As detailed earlier in this MDA, the Pashamylaram incident resulted in a significant loss of lives and injuries and profoundly affected employees, their families and the wider Sigachi community. The Company responded with immediate financial, humanitarian and continuing support to the affected families and employees.
The Companys people philosophy is anchored in empowerment, capability building and purpose-driven engagement. Sigachi was certified as one of the "Best Workplaces for Millennials" by the Great Place to Work Institute and recognised among the "Top 25 Indias Best Workplaces in Pharmaceuticals, Healthcare and Biotech 2025." Gender diversity among new hires stood at 11.1% with an overall gender diversity ratio of 10.60%. The Companys CSR initiatives touched over 12,600 lives during the year.
The organisations ability to maintain stable supply chains, planned production levels and business continuity during the crisis - including through a period of leadership transition - demonstrated the maturity of its governance systems and the strength of its middle-management layer. The Company continues to invest in structured learning, skill enhancement and leadership development, enabling employees to support Sigachis strategic transition toward becoming a fully integrated pharmaceutical company.
Robust internal controls are fundamental to effective risk management and the integrity of financial reporting. Sigachi Industries has implemented a comprehensive internal financial control framework that is well-aligned with the scale, complexity and nature of its operations.
The Company maintains strong control systems that are continuously reviewed to ensure compliance with all statutory and regulatory requirements. Oversight by the Audit Committee plays a critical role in periodically evaluating the effectiveness of these controls, with a clear focus on financial accuracy, risk mitigation and governance standards.
Following the June 2025 incident, the Company materially strengthened its internal control framework. A zero incremental capital expenditure policy was adopted for the Pashamylaram site pending judicial clearance, preventing further capital from being deployed into a non-operational asset.
The insurance provisioning methodology adopted in Q1 - recognising all estimated liabilities of ?‚?1,182 million immediately under Ind AS 16, while deferring insurance recoveries until claims are settled - reflects the Companys commitment to conservative, transparent financial reporting and to eliminating
future-quarter "financial surprises." Enhanced safety protocols, independent facility re-audits and reinforced accountability processes across all manufacturing sites further strengthened the operational control environment.
Through disciplined processes, transparent accounting practices and a culture of compliance, Sigachi reinforces trust among stakeholders, ensures the reliability of its financial disclosures and supports long-term financial stability.
The Company enters FY2026-27 with a clear strategic roadmap anchored in recovery, diversification and capacity-led growth. Management has guided for revenue of ?‚?650-675 crore and an EBITDA margin of 18-20% reflecting a decisive transition from the defensive recovery posture of FY2025-26 to a period of profitable expansion. Performance during FY2026-27 is expected to reflect progressive improvement in operating efficiencies, optimisation of available capacities, normalisation of supply chains and an improving product mix. The benefits from the new MCC and CCS capacities are expected to accrue following their respective commissioning schedules in FY2027-28.
Capacity expansion: The fast-tracked 12,000 MTPA MCC expansion at Dahej SEZ (capex: ?‚?106 crore) is expected to be commissioned by Q2 FY2027-28, scaling total capacity to 30,000 MTPA - a 66% increase that creates significant competitive barriers and enables economies of scale in premium export markets.
By consolidating growth at the Dahej SEZ rather than the Hyderabad, Telangana, the Company secures substantial tax benefits and export incentives critical for a business where 55% of turnover is derived from exports.
CCS commercialisation: The Crossarmellose Sodium facility at Dahej (1,800 MTPA; capex: ?‚?90 crore) is expected to commence commercialisation in Q2 FY2027-28. CCS commands market pricing 2-3x higher than standard MCC, with margins exceeding 20% offering immediate margin accretion as it enters the product mix. Early customer inquiries for bundled MCC-CCS shipments validate the cross-selling thesis.
Revenue diversification: Management has articulated a clear roadmap to shift the revenue mix from 70-75% dependence on MCC toward a more balanced portfolio. The API segment, anchored by the Trimax facility, is projected to scale from ?‚?60 crore to over ?‚?100 crore, increasing its contribution from approximately 14% to 18-20% of revenue. The O&M segment is expected to continue delivering margins of 21-22% as a scalable service platform.
Margin recovery: With the restoration of full manufacturing capacity, the normalisation of logistics costs, and the prioritisation of high-margin speciality and co-processed grades, EBITDA margins are expected to return to the guided 18-20% range. Insurance recoveries under the Business Interruption and Loss of Profit policy are expected to provide additional bottom-line support.
Innovation pipeline: The cystic fibrosis API, with a patent valid until 2039, represents a potential 11-plus-year runway of recurring, high-margin revenue once CEP filings are finalised. The NUENEX nanofiber partnership, expansion into polymer blends and film coatings, and the development of complex, customer-centric formulations are expected to accelerate the Companys migration from commodity excipients to value-added, margin-accretive solutions.
Vendor 1 reclamation: Regaining preferred supplier positioning with key global formulation customers remains an important measure of operational recovery. During FY2026-27, the Company intends to progressively rebuild customer volumes through improved supply reliability, operating consistency and optimisation of available capacities. The planned 12,000 MTPA Dahej expansion, expected to be commissioned by Q2 FY2027-28, will provide additional capacity to support the next phase of customer and export growth.
The Companys structural strengths - a clean balance sheet with no long-term debt, diversified manufacturing across Gujarat and Karnataka, established quality credentials, a growing global customer base and an expanding product portfolio - position it well to convert the robust demand environment into sustainable long-term growth. The stated vision of reaching ?‚?11,000 crore in revenue by FY2028-29 is supported by available land banks of 20 acres at Dahej and 25 acres at Kurnool, enabling modular, capital-efficient expansion with a relatively lean total capex of approximately ?‚?200 crore spanning MCC and CCS expansions.
This report may contain certain statements that the Company believes are or may be considered to be forward-looking statements which are subject to certain risks and uncertainties. These estimates and judgements relating to the financial statements have been made on a prudent and reasonable basis, so that the statements reflect, truly and fairly, the state of affairs and profits for the year. Actual results may differ materially from those expressed or implied. Significant factors that could influence the Companys operations include government regulations, tax regimes, market access-related regulatory compliance, patent laws, domestic and international fiscal policies, geopolitical developments, commodity price volatility and the timing of insurance recoveries. Due to risk and uncertainties, actual results could significantly or materially differ from those that were indicated. These risks and uncertainties include the influence of domestic and international economic and political situations, the volatility of interest rates and the stock market, new rules/laws and government policies that may have an impact on enterprises, and the capability to carry out its goals.
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