💊 Innova Captab: A pharma company where future earnings may look very different from current earnings. Got the hint from @vandit_jain1994 post about this company. ✅ FY26 Revenue: ₹1,630 Cr ( 31%) ✅ CDMO Revenue: ₹1,133 Cr ( 24%) ✅ Branded Generics Revenue: ₹497 Cr ( 51%) ✅ 350 CDMO customers ✅ Presence in 60 countries The key growth driver is the Jammu facility: 🏭 ₹480 Cr invested 📈 FY26 Revenue: ~₹300 Cr 📊 Q4 exit run-rate: ₹90 Cr/quarter ⚙️ Utilization only ~10% 💰 Near EBITDA breakeven Management expects 20% revenue growth ahead and believes EBITDA growth should outpace revenue growth as Jammu scales. 🔹 Government incentives include GST-linked benefits and interest subvention, improving project economics. 🔹 Jammu contributed ~₹300 Cr revenue in FY26 despite being in the early stages of ramp-up. 🔹 Management expects EBITDA growth > Revenue growth and PAT growth > EBITDA growth as utilization rises. Why? Because most fixed costs (employees, utilities, depreciation & finance cost) are already sitting in the P&L. Incremental revenue should drive operating leverage. 🔹 Ex-Jammu EBITDA margins are estimated at ~18%, suggesting the core business is stronger than reported numbers indicate. Other positives: 🌍 Growing exports (~31% of FY26 revenue) 🧪 UK MHRA approval 🏥 Presence in regulated markets like UK, Europe, Canada & Australia 📈 New Baddi expansion under evaluation with potential ₹450-500 Cr revenue capacity The market currently sees a 15.4% EBITDA margin business. The real question is: What does Innova look like when a ₹480 Cr plant running at ~10% utilization starts moving towards optimal utilization? #InnovaCaptab #Pharma #CDMO #MicrocapBreakdown #Investing