Symbiotec Pharmalab IPO: Company Eyes New Growth Engines Beyond Core API Business

Symbiotec Pharmalab's Rs 1,757 crore initial public offering opened for subscription on Monday, August 24, as the company looks to scale up its complex injectables and fermentation CDMO businesses alongside its established steroid API operations, as reported by CNBC-TV18.

The company expects the two newer businesses to become significant growth drivers over the coming years and eventually reach a scale comparable with its core steroid API business.

Chairman and Managing Director Anil Satwani said most of the heavy capital expenditure required to establish the new manufacturing capabilities has already been completed. Symbiotec has invested around Rs 800-850 crore over the past few years through a mix of internal accruals and borrowings and is now moving towards commercialising these investments.

What Does Symbiotec Pharmalab Do?

Steroid and hormone APIs remain the mainstay of Symbiotec's business, accounting for nearly 96% of its revenue. However, the company is looking to broaden its revenue base by moving into higher-value pharmaceutical businesses.

Its fermentation CDMO business is expected to benefit from developments in synthetic biology, while complex injectables represent the company's move further into specialty pharmaceuticals. Management expects the two businesses to eventually become sizeable enough to rival its existing steroid API operations.

Symbiotec also sees considerable scope to grow revenue using its existing manufacturing assets. Chief Financial Officer Raghavender Ramachandran said the core API business currently generates asset turnover of around 1.5 times.

The company believes it could potentially double revenue from current levels without requiring significant additional capital expenditure. It plans to continue deploying operating cash flows towards capacity expansion as demand develops.

Symbiotec is also increasing its focus on regulated markets, particularly the US and Europe. Its reported export numbers capture direct exports, while some of its products reach regulated overseas markets through Indian pharmaceutical companies that source from the company. Management expects revenue from the US and Europe to increase as its presence in these markets expands.

Symbiotec Pharmalab IPO: Fresh Issue To Cut Debt

The IPO comprises a fresh issue of Rs 150 crore and an offer for sale by existing shareholders. Proceeds from the fresh issue will primarily be used to repay debt and for general corporate purposes.

As of March 31, 2026, Symbiotec had debt of around Rs 380 crore. The company expects this to fall to approximately Rs 230 crore after the IPO.

The reduction in debt comes as the company enters the commercialisation phase for the newer businesses. Management expects returns on capital to improve as the recently created facilities begin contributing more meaningfully to revenue and earnings.

The adjusted return on capital employed (ROCE) for the core API business has improved from around 25% to approximately 30%. Consolidated returns, however, remain lower as the newer facilities have yet to reach their full earning potential.

Symbiotec also has a highly integrated manufacturing setup for its steroid and hormone API business, with production beginning from phytosterol derived from soybean. Management has said the company has no manufacturing dependency on China, although it continues to source certain materials from Chinese suppliers where commercially viable.

With the bulk of the initial investment in its new businesses already completed, Symbiotec is now looking to scale these operations and turn them into meaningful contributors to revenue and profitability.

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