RPG Life Sciences delivers stunning 32% profit growth in Q3 FY25

RPG Life Sciences Limited, a part of the diversified RPG Enterprises, has announced impressive financial results for the third quarter (Q3) and nine months (9M) ended December 31, 2024. The integrated pharmaceutical company, known for its domestic and international operations in branded formulations, global generics, and active pharmaceutical ingredients (APIs), showcased remarkable year-on-year (Y-o-Y) growth in both revenue and profitability.

This financial performance reaffirms RPG Life Sciences’ ability to leverage its strategic initiatives while maintaining a robust market position.

What are the highlights of RPG Life Sciences’ Q3 FY25 financial results?

RPG Life Sciences reported a 12% Y-o-Y growth in revenue for Q3 FY25, with total revenue reaching ₹172.71 crore, up from ₹153.70 crore in Q3 FY24. This growth was accompanied by a 32% surge in profit before tax (PBT), which increased from ₹35.54 crore to ₹46.89 crore.

Equally notable was the company’s sustained expansion in EBITDA margins. The EBITDA margin for Q3 FY25 rose to 30.4%, a significant improvement from 25.9% in the same period last year. This increase highlights RPG Life Sciences’ operational efficiency and disciplined cost management, as well as its ability to consistently optimize resources.

How did RPG Life Sciences perform during the nine months of FY25?

For the nine-month period ending December 31, 2024, RPG Life Sciences recorded a 25% Y-o-Y increase in PBT, which rose from ₹100.10 crore to ₹125.28 crore. Revenue from operations grew by 12% to ₹510.34 crore, compared to ₹455.06 crore in the corresponding period of FY24.

The company also achieved EBITDA margin expansion from 24.8% to 27.8% during this period, underscoring its focus on operational excellence and cost optimization.

What is driving RPG Life Sciences’ continued growth?

According to Yugal Sikri, Managing Director of RPG Life Sciences, the company’s robust performance is the result of a meticulously crafted transformation agenda. Over the past five years, RPG Life Sciences has implemented a five-pillar strategy for its Domestic Formulations business, the primary growth engine.

This strategy includes:

• Rejuvenating the product portfolio to meet evolving market needs.
• Building strategic brand and portfolio assets to enhance competitiveness.
• Strengthening the sales force through targeted productivity enhancements.
• Boosting customer engagement via medico-marketing initiatives.
• Driving cost efficiency through structural optimization.

What role do international operations and APIs play in the company’s growth strategy?

RPG Life Sciences is positioning its International Formulations and API segments as secondary and tertiary growth engines. Both divisions are undergoing modernization through significant capital expenditure in manufacturing facilities and R&D laboratories.

The International Formulations business has already started showing healthy double-digit growth, while the API segment is also exhibiting encouraging trends. The company is actively investing in developing a “smart” product pipeline through its upgraded R&D capabilities, which are expected to fuel future growth across international markets.

Sikri emphasized that the surplus cash generated from the assignment of vacant leasehold land at the Navi Mumbai facility will further support business expansion, demonstrating the company’s prudent financial management.

What sets RPG Life Sciences apart from competitors?

As a part of the $4.8 billion RPG Enterprises, RPG Life Sciences benefits from a strong legacy of innovation and strategic direction. Its focus on research-driven, high-quality medicines for both domestic and international markets has positioned it as a trusted partner for healthcare professionals and patients alike.

The company’s structural cost optimization measures have not only supported uninterrupted margin expansion but have also enabled sustainable growth in an increasingly competitive industry.

By consistently delivering value across its branded formulations, generics, and API segments, RPG Life Sciences reinforces its standing as a leader in the pharmaceutical industry.