Synopsis:
Smruthi Organics jumped sharply after the company’s Q2FY26 net profit grew by 165% to Rs 2.06 crore from just Rs 0.78 crore last year, driven by strong API sales. Revenue rose 7.5% YoY to Rs 31.6 crore, marking a sharp turnaround from last quarter’s loss.
The shares of this leading manufacturer of Active Pharmaceutical Ingredients are in focus after it reported a stellar financial performance in this quarter. In this article, we will dive more into the details of it.
With a market capitalization of Rs 151 crore, the shares of Smruthi Organics Ltd reached a day’s high of Rs 140 per share, up 11 percent from its previous day’s closing price of Rs 126.65 per share. Over the past five years, the stock has delivered a return of 48 percent, underperforming NIFTY 50’s return of 100 percent.
Q2 Highlights
Smruthi Organics reported a core revenue of Rs 31.59 crore in Q2 FY26, a growth of 7.5 percent as compared to Rs 29.39 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 66 percent from Rs 19 crore.
On the expenses front, it reported total expenses of Rs 28.76 crore in Q2 FY26, a growth of 2 percent as compared to Rs 28.27 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 39 percent from Rs 20.63 crore.
Regarding its profitability, it reported a net profit of Rs 2.06 crore in Q2 FY26, a staggering growth of 165 percent as compared to Rs 78 lakh in Q2 FY25. Additionally, on a quarter-on-quarter basis, it recorded a sharp turnaround from a loss of Rs 1 crore.
Coming to its segmental highlights, the API segment in Q2FY26 recorded revenue of Rs 31.52 crore as against Rs 29.34 crore in Q2FY25, thereby reflecting a 7.4% YoY increase that was mainly due to the improved sales momentum. The Formulation segment disclosed revenue of Rs 7.6 lakh as compared to Rs 5.43 lakh in the corresponding period of the previous year, thus indicating a 41 percent YoY growth on a smaller base. On the other hand, Unallocable income was at Rs 82 thousand as against Rs 28 thousand in Q2FY25, depicting a slight increase.
Smruthi Organics Limited is a company that was established in 1989 by Mr. Purushotham Eaga and is involved in the production of Active Pharmaceutical Ingredients (APIs) and intermediates. The company is headquartered in Solapur and has a satellite office in Mumbai.
The firm has a couple of manufacturing units in Solapur, including a WHO-GMP-certified API plant covering 22 acres. By having over 100 reactors and a total capacity of 300 KL, it is capable of performing complex chemical reactions and also ensures that there is no liquid waste generated while maintaining strict GMP quality standards.
Written by Satyajeet Mukherjee
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