Synopsis:
Senores Pharmaceuticals jumped sharply after its net profit grew 131% YoY to Rs 30.1 crore due to robust growth in its regulated markets and increased efficiency. Due to strong worldwide demand for its complex generics, revenue increased 56% to Rs 153 crore, and margins improved significantly.
The shares of this leading manufacturer and developer of affordable and high-quality complex generics are in focus after reporting stellar Q2 results. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 3,685 crore, the shares of Senores Pharmaceuticals Ltd made a day high of Rs 829.55 per share, up by 8 percent from its previous day closing price of Rs 766.80 per share. Post its listing on the stock exchanges in December 2024, the stock has delivered a positive return of 40 percent.
Q2 Highlights
Senores has reported a revenue from operations of Rs 153.4 crore in Q2 FY26, representing a 56 percent growth compared to Rs 98.3 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 18 percent from Rs 130.3 crore. One key highlight is that its gross margins increased by a staggering 1,230 bps during the quarter.
The company’s operating performance was excellent in Q2 FY26 as its EBITDA (excluding other income) increased to Rs 49.5 crore (113 percent growth) as compared to Rs 23.3 crore in the same quarter last year. Consequently, its EBITDA margin has significantly gone up by 750 bps to 30.6 percent from 23.1 percent, reflecting improved cost control and higher efficiency.
Regarding its profitability, it reported a net profit of Rs 30.1 crore in Q2 FY26, a staggering growth of 131 percent as compared to Rs 13.1 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 42 percent from Rs 21 crore. PAT margins also improved by 560 bps to 18.6 percent in Q2 FY26.
The company’s Regulated Markets segment performed well in Q2 FY26, with revenue rising 87 percent YoY to Rs 107 crore, mainly because of increased exports and product approvals. However, because of weaker demand in some areas, the Emerging Markets segment saw a 13 percent decline to Rs 32 crore. With a remarkable 1,337 percent increase to Rs 12 crore, the Branded Generics company showed a dramatic turnaround from a low starting point. Due to pricing pressures and decreased offtake, the API segment saw a 20.5 percent YoY decline to Rs 3 crore.
To be precise, as of Q2 FY26, it derives 66.1 percent of its revenue from regulated markets, followed by 19.6 percent from emerging markets, and the remaining 14.4 percent of its total revenue is sourced from others.
Senores Pharmaceuticals is a multinational pharmaceutical company focused on research that creates and produces a variety of medications for markets in the US, Canada, and more than 40 other nations. Its portfolio consists of 32 contract manufacturing products sold in the United States and 81 approved products (ANDAs). The company, which has nearly 400 product registrations worldwide and regulatory approvals in over ten countries, specializes in complex generics, critical care injectables, and APIs.
Senores runs two formulation facilities for emerging markets: one in Atlanta, USA, which has USFDA approval, and another in Chhatral, India, which has WHO-GMP certification. In order to innovate and broaden its product line for international markets, it also operates two API facilities close to Ahmedabad and has three R&D centers: two in India and one in the US.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
