Uganda’s QCIL posts record $80 million revenue as profit surges to $16 million in 2026

Quality Chemical Industries Limited (QCIL), Uganda’s largest pharmaceutical manufacturer, reported its strongest financial performance on record at its Annual General Meeting held on June 30, 2026, underscoring sustained growth and strategic expansion.

Revenue growth driven by efficiency

The Kampala-based company, formerly Cipla Quality Chemical Industries Limited, posted an 8.8% rise in revenue to Ush290.5 billion ($80 million), up from Ush267.1 billion ($73.2 million) in 2025. This marks a new milestone for the firm, supported by improved operational efficiency and product diversification.

Profitability strengthened significantly during the period. Gross margin climbed to 46.7% from 40.6% in the previous year, driven by manufacturing efficiencies, effective raw material cost management, and a more favorable product mix. Operating profit increased by 24.2% to Ush73.8 billion ($20.22 million), while profit after tax surged 38.8% to Ush56.4 billion ($16 million).

Strong cash flow and recovery gains

Cash generation also improved markedly, with operating cash flow more than doubling to Ush67.5 billion ($18.49 million) from Ush30.3 billion ($8.3 million) in 2025. The growth was supported by stronger earnings, improved working capital management, and the full recovery of previously impaired receivables from the Government of Zambia.

Operational milestones defined the year, including the completion of a hydroxyurea manufacturing plant, positioning Qcil as the only producer of sickle-cell therapy on the African continent. The company also introduced 15 new products to the private market, spanning therapeutic areas including antibiotics, antimalarials, antidiabetics, antihypertensives, antifungals, and antiallergics.

Expansion boosts long-term growth outlook

In addition, Qcil commenced construction of a new manufacturing facility at its Luzira site. The plant, expected to be completed within 24 months, will double production capacity and expand the company’s portfolio to include injectables. The project is being financed through a mix of internal resources and bank debt.

Chairman and co-founder Emmanuel Katongole said the company’s journey has been anchored in delivering African-led healthcare solutions. He highlighted the commissioning of the hydroxyurea plant and the groundbreaking of the new facility as key milestones in expanding access to critical treatments across the continent.

Chief Executive Officer Ajay Kumar Pal noted that the company’s performance reflects the strength of its operating model, emphasizing a focus on efficiency, diversification, and the delivery of affordable, accessible, and high-quality medicines.

Dividend increase and future risks

QCIL’s shareholders approved a final dividend of Ush6.4 per share, bringing the total dividend for FY2026 to Ush16.6 per share, a 23% increase from Ush13.5 per share in the previous year. The board, however, cautioned that the year’s performance was supported by non-recurring gains, including recovered receivables, and may not be indicative of future dividend levels.

Looking ahead, Qcil expects near-term profitability to face pressure from rising global competition, evolving procurement dynamics, supply chain constraints, and fluctuations in the cost of key pharmaceutical inputs. Despite these challenges, the company remains focused on cost optimization, operational efficiency, and strategic expansion to sustain long-term growth.