FDC's US formulations leap 283% in Q4, but the year was flat
A strong final quarter, powered by a US FDA approval and margin recovery, couldn't offset a sluggish domestic year for FDC. Revenue rose just **3%** for FY26.
— 3 earlier stories on FDC Ltd. →What's new
- Q4 consolidated revenue rose 18.9% YoY to ₹585 cr, with net profit doubling to ₹103 cr.
- US formulations revenue surged 283% to ₹39 cr; EBITDA margin expanded to 18.2% from 11%.
- Full-year revenue was up just 3% to ₹2,171 cr; net profit grew 5.5% to ₹281 cr.
Why this matters
The quarter showed what FDC can do when its US business fires. But a 3% full-year revenue growth, with domestic formulations flat, shows the core business remains stuck. The Q4 beat doesn't change the annual story.
What we're watching
- Whether the US growth is sustained or a one-off from the fluconazole launch.
- Domestic formulation trends in Q1 FY27.
- Margin durability at the new 18.2% EBITDA level.
The full read
FDC closed FY26 with a quarter that showed what the US business can deliver. Q4 consolidated revenue of ₹585 crore rose 18.9% year-on-year, and net profit of ₹103 crore more than doubled. The engine was US formulations, which surged 283% to ₹39 crore after the company received a US FDA approval for fluconazole tablets. EBITDA margin expanded sharply to 18.2% from 11% a year prior. But zoom out, and the year was flat. Full-year revenue of ₹2,171 crore grew just 3%, and net profit of ₹281 crore was up 5.5%, as domestic formulations remained sluggish. The Q4 numbers are a clean beat. The annual numbers are a reminder that the core business hasn't found a second gear.
Questions answered
- Why did Q4 profit more than double while full-year profit grew only 5.5%?
- The strong Q4, with net profit of ₹103 crore, was not enough to lift the full year after weak earlier quarters. The company's domestic formulations were flat for the year, dragging down the overall growth to 5.5%.
- What drove the margin expansion to **18.2%**?
- The primary driver was the sharp recovery in the US formulations business, which saw revenue jump 283%. This high-growth segment likely carries better profitability than the stagnant domestic portfolio.
- How significant is the fluconazole US FDA approval?
- It's the catalyst behind the 283% surge in US formulations revenue to ₹39 crore in Q4. The approval allows FDC to sell the drug in the US market, providing a new revenue stream.
- Does the strong quarter change the outlook for FDC?
- Not materially. The press release itself notes the core results were previously disclosed, and the annual trajectory of 3% revenue growth remains the key constraint. The quarterly beat is a positive signal, not a trend change.
Story so far
All notes on FDC →- 27 May 2026 · 3:42 PM IST FDC's US formulations leap 283% in Q4, but the year was flat
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