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Balaxi Pharmaceuticals Limited Branded IPR - driven Pharma Player in Frontier Markets Investor Presentation
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2 Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Balaxi Pharmaceuticals Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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3 Contents 04 Corporate Snapshot 17 Financial Highlights 23 Strategic Roadmap
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4 Branded IPR-based pharma company Presence in OTC segments including strong branded generics portfolio Frontier markets leadership in Latin America and Africa Targeting top-2 position in each geography Vast portfolio across diverse therapeutic areas Backed by deep distribution presence Asset light structure for expansion in semi-regulated markets Manufacturing foray for backward integration and global expansion Bridging the Supply Gap in Frontier Markets
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5 Successful Produce, Stock, Sell Business Model Transformation New initiatives strengthening functionality in supply chain, regulatory affairs and customer service Centralized digital procurement, regulatory management and customized CRM tools Markets Established operations: Guatemala (Latin America), Dominican Republic (Caribbean) and Angola (Africa) New operations: Hondurus, El Salvador,and Nicaragua Expansion initiated: Ecuador, Chile (Latin America) Products Vast range of essential OTC medicines – with healthy mix of generics and branded generics 980 product registrations in Seven countries 200+ registrations submitted or in the pipeline Supply Chain Outsourced production from WHO GMP certified plants in India, China and Portugal Established the Company’s first pharmaceutical formulation facility in Hyderabad Distribution Deep presence through 38 warehouses and on-ground fleet support Successful process being replicated in other frontier markets; expansion plans in other global markets over near to medium term
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6 Key Success Factors Market Selection Methodology Human Capital Management Regulatory Affairs Systems Focus on countries with high-potential economic growth framework Identify non-English speaking countries with similar characteristics Low competitive intensity and potential to establish top-2 position On-ground feedback mechanism allows deep understanding of demand dynamics As population crosses prosperity thresholds, healthcare spends expand exponentially Established unique ecosystem of 100+ Indian expatriates in operating geographies Financial security ecosystem for key personnel, creating a highly motivated leadership team Local language training and support from local staff improves on-ground effectiveness Home grown management systems have already proven successful in several countries Homogeneous target markets allow cross-movement of people and resources Appreciation and full compliance of local regulatory framework Comprehensive, in-house capabilities backed by cross-functional coordination with business/tech teams Digitization of regulatory operations with end-to-end management and data security Typical 12-24 months regulatory process is monitored at every stage – supports corporate planning and creates strong local IP
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7 Transition from “Asset Light” to “Asset Right” Market Research Product Registration Marketing and Distribution Product Identification Manufacturing Existing Operations New Manufacturing Unit As a part of its corporate evolution, Balaxi has moved its business model from ‘Asset Light’ to ‘Asset Right’. The company has set up its first pharmaceutical manufacturing facility in a Pharma SEZ located at Jadcherla, Hyderabad.
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8 Investment in Manufacturing Facilities Favorable ROI on Capital Expenditure Immediate demand for new production from established markets Higher efficacy, greater acceptance, enhanced profit margins Strong control over manufacturing ecosystem Improved regulatory processes, reduced time-to-market for new launches Opens up several new market opportunities globally The Commissioning of Company’s first pharmaceutical formulation plant, located at a Pharma SEZ near Hyderabad, is now complete, focusing on General Oral Solid Dosage (OSD) formulations markets in Latin America and Africa. This will drive backward integration of the supply chain to these countries, currently outsourced through contract manufacturing relationships. This facility will produce higher efficacy products that enjoy greater acceptance and enhanced profit margins. From the operations standpoint, Balaxi is establishing a manufacturing ecosystem that affords better control, improves regulatory processes and reduces time to market for new product launches. Over the medium term, Balaxi sees several new market opportunities opening up for its product lines. Company’s first pharmaceutical formulation manufacturing unit General Oral Solid Dosage (OSD) formulations Targeting demand for high-quality products in Latin American markets Allows full backward integration of supply chain Commercial production commenced Historically, Balaxi has successfully executed on its “produce, stock and sell” model. The company has built a large and diversified portfolio of products and a leading position by bridging the supply gap in several countries, first in low-regulation markets in Africa and more recently in semi-regulated markets in Latin America. This outreach has been backed by outsourced, WHO GMP compliant, diversified supply chains developed by the company. As a part of its corporate evolution, Balaxi has now set up its first pharmaceutical formulation manufacturing unit to cater to the demand for high-quality products in existing as well as targeted markets.
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9 Glimpse of Company’s first Formulation Facility:
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10 Glimpse of Company’s first Formulation Facility:
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11 Glimpse of Company’s first Formulation Facility:
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12 Global Footprint Existing/targeted markets have aggregate GDP of $ 400 billion and pharma imports of $ 6 billion Guatemala El Salvador Honduras Nicaragua Dominican Republic Ecuador Chile Portugal Angola India China Existing Market Targeted Expansion Product Sourcing Regions
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13 Key Milestones 2003-07 2008-10 2011-13 2014-16 2017-19 2020-26 Started business supplying white labelled products to customers in Africa Products were sourced from WHO GMP certified plants based in India Created front-end presence by setting up the first pharma wholesale depot in Angola Diversified supply chain by sourcing pharma products from WHO GMP certified manufacturers in China Continued Angola expansion by setting up the 14th pharma wholesale depot and a central distribution warehouse Made in-roads in Dominican Republic – initiated product registrations and opened a central distribution warehouse Set-up central distribution warehouse in Guatemala, entering the third geography Started operations in Honduras, El Salvador and Nicaragua Successfully completed fund raising exercise through Preferential issue – INR 47.57 crore Capex plans – Established Company’s first pharma formulation manufacturing facility in Hyderabad
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14 Corporate Structure Balaxi Pharmaceuticals Limited Balaxi Healthcare Dominica SRL (WOS) Balaxi Healthcare Guatemala S.A (WOS) Balaxi Healthcare Angola LDA Balaxi Healthcare EL Salvador (WOS) Balaxi Healthcare Honduras (WOS) Balaxi Healthcare Nicaragua (WOS) Balaxi Global FZCO, Dubai (WOS) Balaxi Healthcare Angola LDA (WOS) Balaxi Healthcare Nicaragua (WOS) Existing subsidiary companies
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15 Experienced Board of Directors Ashish Maheshwari Chairman & Managing Director Founder of the company, first generation entrepreneur, qualified Chartered Accountant Minoshi Maheshwari Non-Executive Director Co-founder, 20 years of rich experience with Balaxi Kunal Bhakta Independent Director Chartered Accountant with 15 years’ experience, manages First Water Capital, a SEBI registered listed markets AIF Akshita OstwalGandhi Gamji M.S. Rao Independent Director MBA and Bachelors in Engineering, heads successful niche specialty paints and ink chemicals business in Africa/GCC Independent Director MBA from Asian Inst of Mgt, Manila; PGD from IIM-A, Cornell, Kansas State University Ex-CEO, Cereals System Initiative for S Asia promoted by Bill & Melinda Gates Foundation Independent Director Fellow practicing company secretory; Master’s degree in law; A registered trademark agent; Founder of Akshita Surana & Associates; Corporate Laws and IPR laws advisory; Consulting & Litigation
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16 Dynamic Leadership Team Ashish Maheshwari Chairman & Managing Director Founder of the company, first generation entrepreneur, qualified Chartered Accountant Commenced business by supplying white labelled pharmaceuticals formulations to various importers Established Balaxi Group as a conglomerate spanning four continents Recognizes and appreciates knowledge, discipline, transparency and accountability Paridhi Maheshwari Head – Alternate Channels MBA Graduate from London Business School. Stickler for well-defined systems and processes Initiated and leads the consumer products business Qualified Chartered Accountant and Certified Public Accountant from USA Associated with Balaxi Group since 2012 Inherent talent in designing and implementing systemic processes, checks and balances in all operations of the company Clear understanding of the company’s businesses spread across four continents and seven countries Amol Mantri CFO Pranav Maheshwari Head – Latin America BBA and Economics Graduate from Emory University, Atlanta Keen observer, quick learner, leads from the front Oversees the company’s vision for Latin America .
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17 FINANCIAL HIGHLIGHTS
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18 Management’s Comments – Q1 FY27 Performance "Q1 FY27 marked a positive start to the new financial year, with the Company delivering healthy revenue growth and improved profitability while continuing to execute its long-term strategic priorities. Our focused approach towards institutional business, portfolio expansion, and backward integration is beginning to translate into improved operating performance across key markets. Consolidated revenue increased 14% YoY to ₹80.68 crore from ₹70.74 crore in Q1 FY26. Gross profit margin expanded by 241 basis points to 46.5%, reflecting an improved business mix, disciplined product selection, and the benefits of our market diversification strategy. Profit after tax increased to ₹1.29 crore from ₹0.29 crore in the corresponding quarter last year. While profitability has improved meaningfully, we believe it does not yet reflect the Company's full earnings potential and expect further improvement as operating leverage strengthens and strategic initiatives mature. During the quarter, we secured 16 new product registrations, taking our total portfolio to 980 registered products across our key markets. We also achieved another significant milestone with the commencement of commercial production at our first pharmaceutical formulation facility at Jadcherla, Hyderabad. The facility now has approvals for 31 commercial products, with production being scaled up in line with market demand. In parallel, the Company is progressing towards WHO-GMP certification, which is expected to further strengthen our manufacturing credentials and unlock new growth opportunities. Looking ahead, we remain focused on expanding our institutional business, strengthening our presence across Africa and Latin America, accelerating commercialization of our manufacturing facility, and continuing our portfolio expansion. Alongside the strategic exit from the Ancillary Building Hardware business, these initiatives are expected to improve working capital efficiency, enhance operational performance, and create sustainable long-term value for our stakeholders. We sincerely thank our shareholders, employees, customers, partners, and all stakeholders for their continued trust and support as we advance into the next phase of Balaxi's growth journey."
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19 Quarterly Financial Performance - Consolidated Particulars (INR Crore) Q1 FY27 Q1 FY26 YoY Revenue 80.68 70.74 14.1% Gross Profit 37.51 31.18 20.3% Gross Margin % 46.5% 44.1% +241 bps EBITDA 4.66 4.15 12.4% EBITDA Margin 5.8% 5.9% (8 bps) Profit After Tax 1.29 0.29 347% PAT Margin % 1.6% 0.4% +120 bps Earning Per Share (in Rs.) 0.24 0.05 380%
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20 Working Capital DebtShareholders’ Funds Fixed Assets Pharma Product Mix – Q1 FY27 40% 13% 13% 16% 18% Dosage Forms Tablets Injectables Liquids Capsules Others 54% 46% Geographies Africa* LATM** 40% 60% Products Branded Generics 40% 15%6% 39% Therapeutic Areas Antibiotics Analgesic Anti-malaria Others *Africa: Angola *LATM – Guatemala, Dominican Republic, Hondurus, El Salvador and Nicaragua
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21 Financial Performance (Consolidated): FY26 Particulars (INR Crore) FY26 FY25 YoY Revenue 270.17 292.56 (7.7%) Gross Profit 119.30 126.86 (6.0%) Gross Margin % 44.2% 43.4% +80 bps EBITDA 11.35 33.50 (66.1%) EBITDA Margin % 4.2% 11.5% (725bps) Profit After Tax 1.42 25.07 (94.3%) PAT Margin % 0.5% 8.6% (805 bps) Earnings Per Share (INR) 0.26 4.54 (94.3%)
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22 Working Capital DebtShareholders’ Funds Fixed Assets Pharma Product Mix – FY26 41% 15% 12% 16% 16% Dosage Forms Tablets Injectables Liquids Capsules Others 52% 48% Geographies Africa* LATAM** 40% 60% Products Branded Generics 41% 14% 8% 37% Therapeutic Areas Antibiotics Analgesic Anti-malaria Others *Africa: Angola and Central African Republic *LATAM – Guatemala, Dominican Republic, Hondurus, El Salvador and Nicaragua
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23 Core Strategy: Enter, Expand & Excel Balaxi in 2020: Business Consolidation Balaxi in 2021-24: Expansion into New Geographies Balaxi in 2025 & Beyond Presence across Angola, Guatemala and Dominican Republic Effective and efficient supply chain model consisting of 38 warehouses and a fleet of owned vehicles Aim to capture incremental market share in existing geographies by continuing to pursue various opportunities by leveraging physical assets Expanding presence in Honduras, El Salvador, Nicaragua, and Central African Republic Focus on offering a comprehensive product portfolio to fulfill consumer demand Foray into other Latin American countries, South-East-Asia and CIS markets, replicating the established and differentiated business model Backward integration of supply chain by setting up Company’s first pharma formulation manufacturing facility Focus on ideal mix of branded and generic medicines, maximizing returns in key geographies Targeting strong global presence in potential frontier markets over the next five years Tapping into new channels for deeper penetration in existing markets
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Plot No. 409, H.No. 8-2-293, 3rd Floor Maps Towers, Jubilee Hills, Road No:81,Hyderabad. Telangana CIN: L25191TG1942PLC121598 Company Investor Relations contact Sunny Purohit +91-40-2355-5300 sunny@balaxi.com www.balaxipharma.in BALAXI BALAXI:IN Thank You