Curis Lifesciences IPO

Curis Lifesciences manufactures a diverse range of pharmaceutical products, including tablets, capsules, oral liquids, external preparations such as creams, gels, and ointments, and sterile ophthalmic ointments. The company holds two manufacturing licenses—G/25/2225 and G/28/1632—issued by the Foods & Drugs Control Administration, Gujarat. These licenses authorise the company to produce both general drugs and specialised products, including vaccines, sera, sterile formulations, and psychotropic substances under Schedules C, C(1), and X. Furthermore, Curis Lifesciences claims to have a portfolio of 943 approved products, comprising 745 under License G/25/2225 and 198 under License G/28/1632, allowing it to cater to a wide range of therapeutic requirements.

The company’s manufacturing facility is situated in Sanand GIDC II, Ahmedabad, Gujarat — a location that offers access to reliable infrastructure, skilled labour, and established supply chains.

Curis Lifesciences claims to operate a large-scale production facility with an annual capacity of 138 crore tablets, 15.75 crore capsules, 10.80 lakh litres of syrup, 270 tonnes of external preparations, and 45 tonnes of sterile ophthalmic ointment. This capacity provides the company with the flexibility to respond to increasing demand and expand its operations efficiently.

The company’s manufacturing facility is accredited by the World Health Organisation – Good Manufacturing Practices (WHO-GMP). It is also registered with several international regulatory authorities, including those in Yemen, Kenya, the Philippines, and Nigeria, supporting its ability to serve both domestic and global markets.

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 35.45 crore in FY23 to Rs 35.55 crore in FY24 and Rs 49.13 crore in FY25. PAT increased from Rs 1.87 crore in FY23 to Rs 4.87 crore in FY24 and Rs 6.10 crore in FY25.

Curis Lifesciences depends on third-party suppliers for sourcing key raw materials such as starch, paracetamol, isopropyl alcohol, and packaging materials like aluminium foil and corrugated boxes. Net cost of raw material consumed accounted for Rs 9.81 crore (62.15 percent) of the company’s total expenses for the period ended July 31, 2025; Rs 21.24 crore (51.32 percent) in FY25; Rs 12.75 crore (44.44 percent) in FY24; and Rs 16.56 crore (49.28 percent) in FY23. The company generally procures materials from the spot market without long-term contracts, leaving it vulnerable to price volatility and supply shortages. Any significant increase in input costs or supply disruptions could negatively impact the company’s profit margins, production cycles, and financial condition.

The top customer alone accounted for Rs 9.32 crore (47.79 percent) of the company’s revenue for the period ended July 31, 2025; Rs 10.86 crore (22.10 percent) in FY25; Rs 15.91 crore (44.76 percent) in FY24; and Rs 11.92 crore (33.63 percent) in FY23. Such dependence exposes the company to significant customer concentration risk. If the company loses this key customer or orders from it are reduced, it could adversely impact the company’s revenue and profits.

The top supplier alone accounted for Rs 8.82 crore (49.75 percent) of the company’s total purchase for the period ended July 31, 2025; Rs 6.88 crore (16.72 percent) in FY25; Rs 5.16 crore (21.55 percent) in FY24; and Rs 1.86 crore (7.71 percent) in FY23. Such reliance increases vulnerability to supply chain disruptions, pricing changes, and material shortages. Any termination or interruption in the relationship with this vendor could disrupt the company’s manufacturing operations and adversely affect its business and financial stability.

Curis Lifesciences derives a major portion of its revenue from Gujarat under its contract manufacturing activities. For the contract manufacturing for merchant exports segment, Gujarat accounted for Rs 5.77 crore (29.86 percent) of the company’s revenue for the period ended July 31, 2025; Rs 19.65 crore (41.12 percent) in FY25; Rs 22.97 crore (67.45 percent) in FY24; and Rs 15.90 crore (47.64 percent) in FY23. For the contract manufacturing for domestic suppliers segment, this state accounted for Rs 8.24 crore (42.66 percent) of the company’s revenue for the period ended July 31, 2025; Rs 21.36 crore (44.70 percent) in FY25; Rs 5.91 crore (17.36 percent) in FY24; and Rs 10.21 crore (30.60 percent) in FY23. Furthermore, the company’s single manufacturing facility is also located in Gujarat. This concentration of operations and sales in Gujarat increases the company’s exposure to regional regulatory, political, and economic risks. Any disruption in this region could negatively impact the company’s business operations, revenue, and financial performance.

Curis Lifesciences generates a substantial portion of its revenue from export sales to a few countries, primarily through merchant exporters and direct sales to the Republic of Yemen and Kenya. Export sales accounted for Rs 10.74 crore (55.08 percent) of the company’s total revenue for the period ended July 31, 2025; Rs 24.90 crore (50.68 percent) in FY25; Rs 26.64 crore (74.93 percent) in FY24; and Rs 21.15 crore (59.67 percent) in FY23. Such reliance on a limited number of international markets increases exposure to country-specific economic, regulatory, and geopolitical risks. Any disruption in trade relations or decline in demand from these countries could negatively affect the company’s export revenue and overall financial performance.

Curis Lifesciences derives a major portion of its revenue from its top five products. They contributed Rs 19.31 crore to the company’s revenue for the period ended July 31, 2025; Rs 47.80 crore in FY25; Rs 34.26 crore in FY24; and Rs 33.73 crore in FY23, accounting for more than 90 percent of total operating revenue. Heavy reliance on a limited product portfolio increases the company’s vulnerability to demand fluctuations, regulatory changes, or shifts in market preference.

The company, its promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

Curis Lifesciences primarily sells its products to pharmaceutical marketing companies that manage distribution and sales in domestic and international markets. The company’s performance is therefore closely linked to the effectiveness and financial health of these third parties, over whom it has limited control. Any underperformance, delay in payments, or engagement of these marketing partners with competitors could disrupt Curis Lifesciences’ supply chain, limit market access, and negatively affect its revenue, profitability, and cash flow.

The company reported a negative cash flow from operating activities of Rs 1.76 crore in FY25. This was due to payments related to taxes, trade payables, and increases in inventory and short-term advances. Additionally, negative cash flow from investing activities amounted to Rs 0.13 crore for the period ended July 31, 2025; Rs 0.02 crore in FY25; Rs 0.06 crore in FY24; and Rs 0.55 crore in FY23. This is primarily attributed to the purchase of fixed assets. Furthermore, the company reported negative cash flow from financing activities amounting to Rs 0.59 crore for the period ended July 31, 2025, and Rs 2.76 crore in FY23. This was due to repayment of borrowings and interest expenses. Sustained negative cash flows could constrain liquidity, hinder growth initiatives, and adversely affect the company’s financial stability.

As of July 31, 2025, the company had financial indebtedness of Rs 15.31 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.