Synopsis: Shares of Shilpa Medicare Ltd jumped 14% after reporting strong Q3FY26 results, with revenue rising 29% YoY to Rs 410 crore and PAT growing 41% YoY to Rs 45 crore. EBITDA margins improved to 28%, driven by robust growth across API, formulations, and biologics segments.
The shares of this company, which manufactures niche APIs, intermediates, and formulations and also undertakes contract research and manufacturing service for some of its customers, had its shares in momentum today after the company declared its Q3 results, with growth in several of its performance metrics.
With the market cap of Rs 6,557 crore, the shares of Shilpa Medicare Ltd have gained about 14% and reached a high at Rs 359.95, compared to their previous day’s closing price of Rs 314.45. The shares are trading at a PE of 37, whereas its industry PE is at 29.4.
Q3 Result highlights
The revenue from operation for the company stood at Rs 410 crore when compared to Rs 319 crore in Q3 FY25, growing by about 29 per cent on a YoY basis and on a QoQ basis increasing by 11 per cent from Rs 370 crore in Q2 FY26.
The PAT grew by about 41 per cent on a YoY basis when you compare the Q3 FY26 profit at Rs 45 crore to Rs 32 crore in Q3 FY25 and on a QoQ basis has increased by 2 per cent from Rs 44 crore in Q2 FY26.
Business Highlights
3QFY26’s revenue mix was well diversified across three business segments: API (45% or Rs 186 crore), formulations (43% or Rs 177 crore) and biologics (12% or Rs 48 crore). API remains the largest contributor to total revenue, but formulas are a close second, indicating that revenue for each segment is being generated from different sources, while biologics represent a strategically high growth potential with a lower contribution relative to the total business.
Quarterly revenues reached their highest level ever at Rs 411 crore, representing 28% year-on-year growth for this quarter, driven primarily by growth in FDF and biologicals. EBITDA’s total of Rs 115 crore included approximately 28% of the total calculations, an improvement of approximately 200 bps compared to the last year’s quarter.
Adjusted profits after tax (PAT) were reported to have grown 72% YoY to Rs 55 crores, driven strongly by the effects of significant operating leverage between both quarters. In addition to the operational numbers, had there been a Rs 10 crore extraordinary charge net of tax, since it was related to the first-time implementation of labour codes, this would have negatively impacted the reported profitability within this quarter.
Mr Vishnukant Bhutada, Managing Director, states, “In Q3FY26, the Company has achieved 28% revenue growth YoY and has achieved 28% EBITDA margins, which was driven by excellent growth in FDF, API and biologicals. EU approval for rotigotine, completion of Phase 3 for ondansetron ER and launching of the first-in-class NAFLD therapy in India were key highlights.
FDF grew by 50% YoY, with good traction in both the EU and US, while APIs had growth supported due to increased capacity. Improvements in ROCE and continued pipeline advancement make the company poised to achieve higher levels of achievement in FY27 compared to FY26.”
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