Wanbury Limited faces Q3 FY25 revenue decline amid facility shutdown

Wanbury Limited, a pharmaceutical company with a strong presence in the active pharmaceutical ingredients (API) market and domestic branded formulations, has announced its financial results for the third quarter (Q3) and nine-month (9M) period of fiscal year 2025. The results indicate a sharp decline in revenue and profitability, largely attributed to the temporary shutdown of its Tanuku manufacturing facility for a scheduled upgrade. Despite the short-term setback, the company remains committed to strengthening its API portfolio expansion and sustaining growth through strategic appointments and regulatory approvals.

How Did the Tanuku Facility Shutdown Impact Revenue from Operations?

The company’s revenue from operations for Q3 FY25 stood at ₹133.5 crore, marking an 8.3% decline year-over-year (YoY) from ₹145.5 crore in Q3 FY24. The quarter-on-quarter (QoQ) decline was even more significant at 17.2%, compared to ₹161.2 crore in Q2 FY25. The company attributed this drop to the 30-day scheduled shutdown of the Tanuku manufacturing plant, which affected production capacity and revenue generation.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter fell to ₹14.8 crore, representing a 32.3% YoY decline from ₹21.8 crore in Q3 FY24. The EBITDA margin narrowed to 11.1%, reflecting a contraction of 393 basis points from the previous year.

Wanbury Limited also reported a substantial drop in its profit after tax (PAT), which stood at ₹1.2 crore, down 88.1% YoY from ₹10.3 crore in Q3 FY24. The PAT margin declined to 0.9%, representing a 615-basis-point drop compared to the same period last year.

What Are Wanbury Limited’s Growth Strategies Despite the Decline?

Although Wanbury Limited faced a temporary downturn in Q3 FY25, it remains focused on API portfolio expansion, regulatory compliance, and strategic leadership changes to drive future growth. The company successfully completed the Brazilian Health Authority (ANVISA) audit at its Tanuku facility in December 2024, securing its ability to maintain and expand its presence in the Brazilian pharmaceutical market. This regulatory clearance strengthens its global market positioning and opens new revenue opportunities.

In addition, Wanbury Limited is preparing to launch three new API products in the near future. These additions are expected to bolster its export capabilities and drive revenue from operations, particularly in emerging markets.

How Will New Leadership Drive Wanbury Limited’s India Formulation Business?

The company has taken significant steps to strengthen its management team, appointing Rashesh Patel as Corporate Director – India Formulation Business. Patel brings extensive experience in sales, business transformation, and brand development, having previously worked at Kepler Healthcare and Corona Remedies. At Kepler Healthcare, he led the company to several industry recognitions, including the Best Launch of the Year and Excellence in Marketing awards.

During his tenure at Corona Remedies, Patel played a crucial role in the company’s growth from ₹80 crore in FY 2013 to ₹623 crore by FY 2022, marking an impressive 7.8x revenue increase. He also spearheaded expansion initiatives, taking the company from a partially operational four-division business to a six-division, multi-specialty pharmaceutical firm. His leadership at Troikaa Pharmaceuticals further demonstrated his strategic expertise, where he successfully launched five new business divisions over 12 years. Patel’s appointment is expected to enhance Wanbury Limited’s India Formulation Business, positioning it for long-term profitability and market expansion.

How Will New Board Members Strengthen Corporate Governance?

Wanbury Limited has also strengthened its board with the appointment of Pallavur Sankar Dass Vaidyanathan as an Additional (Non-Executive Independent) Director. His vast experience includes serving as CEO and Director of Curatio Healthcare, where he scaled the business and successfully facilitated its ₹2,000 crore acquisition by Torrent Pharmaceuticals. His background in strategic planning and brand management at Dr. Reddy’s Laboratories (DRL) further underscores his ability to drive corporate growth and innovation.

Additionally, Manoj Gursahani has joined the board as an Additional (Non-Executive Independent) Director. As Executive Director of Mumbai-Global Chamber, a Co-Founder of Vera Healthcare Technologies, and a global strategist, Gursahani brings deep industry insights. His expertise in AI-driven healthcare solutions, specifically in early screening for diabetes-related eye diseases, aligns with Wanbury Limited’s focus on innovation and healthcare expansion. His appointment is expected to contribute to corporate governance, strategic direction, and business development.

How Is Wanbury Limited Managing Debt and Fundraising?

To support its growth initiatives and financial restructuring, Wanbury Limited has entered into a Definitive Term Sheet with Emerging India Credit Opportunities Fund II to raise ₹200 crore through unlisted, secured, redeemable non-convertible debentures (NCDs). These funds will be disbursed in two tranches, with ₹175 crore allocated in the first tranche and ₹25 crore in the second tranche.

The capital raised will be directed toward replacing high-cost debt, funding capital expenditures, and strengthening working capital. This strategic move is expected to provide financial flexibility while supporting long-term expansion efforts.

What Is Wanbury Limited’s Future Outlook?

Despite the revenue decline in Q3 FY25, Wanbury Limited remains optimistic about its future trajectory. The company continues to enhance its API portfolio expansion, develop new market opportunities, and focus on regulatory compliance. The completion of the ANVISA audit, combined with its planned API launches, positions the company for growth in international markets.

Additionally, the strategic appointments of Rashesh Patel, Pallavur Sankar Dass Vaidyanathan, and Manoj Gursahani bring expertise that will strengthen Wanbury Limited’s India Formulation Business and corporate governance. These leadership changes, coupled with financial restructuring efforts, indicate a commitment to long-term stability and profitability.

As the company moves forward, its ability to recover from the temporary impact of the Tanuku facility shutdown will depend on its execution of API expansion strategies, leadership-driven business transformation, and prudent financial management. With a renewed focus on revenue from operations, cost efficiency, and global market penetration, Wanbury Limited is positioning itself for sustainable growth in the pharmaceutical industry.