FDC Limited has reported a steady performance for the quarter ended 30 June 2025 (Q1 FY26), with operating revenue of Rs 6.48 billion, reflecting a year-on-year (YoY) growth of 1.6 per cent.The India formulation business recorded revenue of Rs 5.79 billion, showing a 5.6 per cent YoY rise and contributing 90 per cent to total consolidated sales. The API segment also delivered modest growth of 3.3 per cent YoY, with sales of Rs 260 million. However, export formulations dropped 33.8 per cent YoY to Rs 420 million, while emerging market revenue declined 39 per cent YoY to Rs 260 million due to supply disruptions.The US business showed early signs of recovery, with Rs 116 million in sales during Q1 FY26, representing a 106 per cent YoY growth in direct supplies. This growth follows the resolution of recall-related issues and updated API impurity standards clarified by the US FDA. Despite this progress, overall US business revenue fell 22.2 per cent YoY due to lower profit share from partners caused by reduced sales in FY25.FDC’s EBITDA for the quarter stood at Rs 1.4 billion, with a margin of 21.6 per cent, down from 23 per cent in the previous year. The drop is mainly due to increased strategic expenses, notably a 271.4 per cent YoY surge in R&D expenditure to Rs 85 million and higher employee costs linked to field force expansion and ORS manufacturing capacity enhancements.Business Performance Summary – Q1 FY26 (Rs crore):Net Sales: Rs 648 crore | 1.6% YoY growthIndia Formulations: Rs 579 crore | 5.6% YoY growthUS Formulations: Rs 16 crore | -22.2% YoY declineEmerging Markets: Rs 26 crore | -39.3% YoY declineAPI Sales: Rs 26 crore | 3.3% YoY growthAccording to IQVIA secondary sales data (MAT June 30, 2025), FDC outpaced the Indian Pharmaceutical Market (IPM) with 10.8 per cent growth versus 8.0 per cent for IPM. Its flagship brand, Electral, climbed to 14th place in IPM rankings, up from 18th the previous year. Electral also became the fastest-growing product among IPM’s top 20 and the first FDC brand to cross Rs 6 billion in IPM sales.Export formulation sales were Rs 420 million, accounting for 6 per cent of total sales, while the API business represented 4 per cent with Rs 260 million in revenue.Despite short-term supply challenges in emerging markets, FDC maintains a healthy order pipeline and expects improved execution in subsequent quarters.