SMS Pharma Share Price Jumps 8% After USFDA Clears Reformulated Ranitidine Tablets

SMS Pharmaceuticals’ share price (NSE: SMSPHARMA) jumped as much as 8.48% on November 26, hitting an intraday high of ₹297.25. At 10:40 AM, the stock was trading 6.77% higher at ₹292.55, while the Sensex was up 0.73%. The rally came after its associate company VKT Pharma received approval from the USFDA for reformulated Ranitidine tablets.

Why SMS Pharma Share Price Rose Today

The USFDA approved VKT Pharma’s Ranitidine tablets in 150 mg and 300 mg strengths. Ranitidine is used to treat GERD, peptic ulcers, and high stomach acid. This approval brings the medicine back to the US market after 5 years, following safety-related concerns around NDMA impurities.

The updated formulation meets new safety standards, and the company expects this to improve patient access once again.

SMS Pharma Quarterly Performance Boosts Confidence

SMS Pharmaceuticals posted impressive results for Q2FY26:

• Revenue up 23% YoY to ₹242.43 crore
• Gross margin improved 30% YoY, helped by backward integration
• EBITDA up 54% YoY to ₹48.38 crore
• PAT rose 80% YoY to a record ₹25.32 crore
• Strong operating cash flows support the company’s ₹280 crore capex program, due to finish by Nov 2026

The company credits higher demand, market share gains, and improved margins for this strong performance.

Management Commentary

Executive director P. Vamsi Krishna said the company saw strong demand across its diversified product line, especially in key APIs. Backward integration has boosted margins, strengthened customer relationships, and helped SMS Pharma expand into regulated markets.

The company remains confident of achieving:

• 20% revenue growth
• 20% EBITDA margin in FY26

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About SMS Pharma and Operations

Founded in 1990, SMS Pharmaceuticals is a fully integrated API manufacturer with strong R&D capabilities.

It operates 2 facilities:

• Hyderabad: 200 KL capacity
• Vizag: 3,000 KL capacity

The company serves customers in over 70 countries across multiple therapeutic areas.

Conclusion

SMS Pharma’s stock surged after the USFDA approval for reformulated Ranitidine tablets, marking a major comeback for the drug in the US market. Strong quarterly results, robust margins, and ongoing expansion efforts further strengthen the company’s growth outlook for FY26. The combination of regulatory approval and solid financial performance is boosting investor confidence in the stock.

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