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Informist, Thursday, Sept. 10, 2026

 

--Brooks Labs CEO: Looking to deepen presence in African markets

--Brooks Labs CEO:Got approval for 1 molecule in Nigeria, 3 more in pipeline

--CONTEXT: Comments by Brooks Labs CEO Rathi in interview with Informist

--Brooks Labs:Seeking registration, inspection in Botswana, Congo, Mozambique

--Brooks Labs CEO: Exploring regulated mkts like Europe, US via partnerships

--Brooks Labs CEO: Planning 3 oncology product launches in Afghanistan in Q3

By Gunjan Rajput and Pratiksha 

 

NEW DELHI – Brooks Laboratories Ltd. is looking to deepen its presence in African markets after recently securing regulatory approval and an order for supply in Nigeria, as the pharmaceutical manufacturer shifts its strategy towards higher-margin products and seeks to revive top line growth. "We got approval from Nigeria also recently. We are getting orders for the supply too," Chief Executive Officer and Chief Financial Officer Prashant Rathi said in an interview with Informist.

 

The Mumbai-based company has received approval for one molecule in Nigeria, with three more in the pipeline, Rathi said. While some products are already registered in these markets, Brooks Labs is pursuing further registrations and regulatory inspections in Rwanda, Botswana, the Democratic Republic of Congo, and Mozambique.

 

The expansion builds on the company's existing international footprint. According to the 2025-26 (Apr-Mar) annual report, the company's products are exported to Afghanistan, Yemen, Kosovo, Bolivia, Guatemala, Turkmenistan, Nigeria, Lebanon, Mauritius, Sudan, Madagascar, the Democratic Republic of Congo, Angola, and Mozambique, besides select markets in Latin America and Africa. Its manufacturing facilities have regulatory approvals from Yemen, Afghanistan, Cambodia, Cte d'Ivoire, and Nigeria, and support more than 50 market authorisations and over 95 products.

 

As per the annual report, Brooks Labs is also pursuing registrations in Nigeria, Sudan, Bolivia, Ecuador, Kosovo, Syria, Myanmar, the Dominican Republic, El Salvador, Kenya, and Rwanda, subject to regulatory approvals and commercial feasibility. "We are expanding on the registration...we see how quickly we get registration, who are the competitors there [and] what are the current in-market prices," Rathi said.

While semi-regulated markets remain an important focus, Brooks Labs is also exploring more regulated markets such as Europe and the Americas through strategic partnerships. Rathi said these partnerships are in the pipeline, although the company has not quantified its potential revenue contribution.

 

BUSINESS, PROFITABILITY

The company is looking to add oncology to its product portfolio through licensing and loan-licensing arrangements, rather than its own manufacturing, Rathi said. It has three oncology molecules lined up for launch in Afghanistan through a local partner, with the management expecting the launch around the December quarter, depending on shipments. The company plans to subsequently take the products to Yemen and other export markets, he said. "Oncology is not the portfolio of Brooks...but yes, this is the new therapeutic category that we have introduced," the management said.

 

The company is also evaluating a glucagon-like peptide-1 product-development opportunity. Rathi said this is among the company's key projects. The opportunity is being evaluated as a product-development exercise rather than simply competing on price, he said.

 

Following a strong FY24, Brooks Labs' revenue growth has slowed slightly since then. On a standalone basis, the company's revenue from operations rose over 43% year-on-year to INR 794.86 million in FY24. However, revenue grew only about 4% on year in FY25, with the turnover rising to INR 825.57 million. In FY26 as well, revenue rose 4% on year to INR 857.38 million. Despite the slower revenue growth, the company's standalone net profit almost doubled on year to INR 30.34 million in FY25, and rose 90% on year to INR 57.743 million in FY26.
 

Rathi attributed the divergence between the top line and bottom line to a deliberate change in the product mix. Instead of deploying resources and manpower towards lower-margin products, Brooks Labs has been prioritising higher-margin products, he said. "Instead of deploying our energy and resources for the lower margin profit, we went for a higher margin profit." He added that the exports segment is a premium opportunity for the company and optimisation of products is a key avenue to improve margins.

 

Rathi said the company's consolidated on-year loss in the June quarter was largely due to the share of loss from Brooks Steriscience, its jointly controlled entity. Brooks Labs reported a 10% year-on-year decline in consolidated revenue at INR 229.61 million in the June quarter. The company reported a consolidated net loss of INR 17.87 million, against a profit of INR 95.85 million in the same period a year ago. Brooks Steriscience's share of the loss was INR 32.06 million in the June quarter. Brooks Steriscience is a joint venture in which Brooks Laboratories shares control with Steriscience Specialties.

Rathi said losses at the jointly controlled entity were mainly due to supply-chain disruptions amid the war in West Asia, and described it as temporary. "It's mostly supply disruption," he said, adding that the company is working on alternative sources and ways to make supply more cost-efficient.

 

The supply-chain disruption has also coincided with higher raw-material and packaging costs, he said, adding that the company has not been able to fully pass on the incremental costs to customers, particularly in India's price-sensitive market. The company is, therefore, trying to offset the pressure through alternative sourcing, procurement optimisation, and product changes. He said there was no major impact currently, but acknowledged that margins had been affected initially.

 

While revenue growth moderated sharply, the company's earnings before interest, tax, depreciation, and amortization margin improved to 8.23% in FY26 from 6.03% in FY25. For the June quarter, the company reported an EBITDA margin of 8.1%.

 

Brooks Labs has also strengthened its cash position through partial sale of its holding in Brooks Steriscience. In June, the company sold 51,220 shares for about INR 1.06 billion, reducing its holding in Brooks Setriscience from 49% to 32.67%. The company said the proceeds provide flexibility to invest in registrations and new products. "We have generated sufficient cash," Rathi said, adding that Brooks Labs is investing more in registrations and innovative products. 

 

Rathi expects the company to see profitability by the end of FY27 as it remains focused on delivering both top line and bottom line improvement despite a weak June quarter.

 

On the manufacturing front, Rathi sees a combination of higher utilisation, better product mix, and selective capacity expansion driving the next phase of growth. Some production lines are already highly optimised, and the company said it will prioritise products with better margins while evaluating additional capacity based on returns on capital expenditure. 

 

The company plans to continue investing in compliance-related augmentation while remaining open to capacity expansion where the returns justify the investment. Brooks Labs' annual report identifies manufacturing expansion, contract development and manufacturing organisation, and third-party manufacturing as important growth drivers.

 

For Brooks Labs, the immediate challenge is, therefore, to convert its expanding regulatory footprint and new product pipeline into revenue while maintaining the higher-margin product mix that the company says has already helped drive a sharp improvement in profitability.

 

At 1521 IST, shares of the company were at INR 64 on the National Stock Exchange, up 1.6%.  End 

Edited by Avishek Dutta

 

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