Citi Pharma Ltd (CPHL) conducted its analyst briefing session today to discuss business performance and outlook, as reported by Topline Pakistan Research. The company’s biotech insulin manufacturing plant, currently in trial production, is scheduled to undergo a regulatory inspection by the Drug Regulatory Authority of Pakistan (DRAP) in April 2026. The inspection is a mandatory compliance requirement before commencing commercial operations. The domestic insulin market is currently estimated at approximately Rs 20 bn.

CPHL has received name approval from SECP for its new project, Citi REIT Management Company (CRMC), and has received an NOC for the formation of CRMC. The expected timeline for the formation is within 6 months. CPHL has three valuable debt-free plots in this project, worth Rs8bn, at Hali Road, DHA Lahore, and Islamabad.

Net sales increased 23% YoY to Rs4.3bn in 2QFY26, primarily due to higher sales of formulation products, better product mix, and enhanced production efficiencies. This takes 1HFY26 sales to Rs7.7bn, up by 14% YoY. Not that the revenue mix includes 80% APIs and 20% formulation products.

The company is targeting segment revenue from formation to reach Rs 4 bn by December 2026. Overall, Rs3bn in revenue has already been achieved to date, and Rs1-2bn will be booked by June 2026, based on in-hand orders.

Similarly, the company’s gross margins soared to 22% from 15% in 2QFY26. This takes 1HFY26 margins to 19%, up from 14% in 1HFY25. Gross margins increased due to improved inventory management. The gross margins of APAPIroducts vange ofrom~14-15% for APIs, and ~1820% for other products.

The company will commence trading operations through its wholly owned subsidiary, Citi Veterinary Limited. This is a strategic entry into the animal health and livestock pharmaceutical market. The market size of this segment is approximately. Rs345-400bn, and the management has set a target of achieving Rs1.5bn in the first year.

§ However, as the plant might take 3-4 months to become operational, the company is managing the product portfolio across both segments, including animal health and livestock, through toll manufacturing.

§  Furthermore, CPHL has initiated the establishment of ashAshoequivalence centres in Pakistan,n which will integrate bioanalytical laboratories. This is an animal research facility with a 100-bed affiliated hospital under one roof, marking it a fully integrated research platform.

§  To recall, CPHL recorded the net profit of Rs404mn (EPS of Rs1.77) up by 58% YoY in 2QFY26. This takes 1HFY26 net profits to Rs 608mn (EPS of Rs 2.66), up by 32% YoY.

§  The company is currently trading at an FY26E/FY27F PE of 19.3/13.5x.