Synopsis:
Bajaj Healthcare reported a 71 percent YoY rise in profit and 13 percent revenue growth in Q1FY26, driven by strong API exports and CDMO traction. However, shares fell 7.2 percent due to a 3 percent QoQ revenue dip and a drop in EBITDA margin from 19.1 percent to 17 percent YoY.
A pharmaceutical stock fell sharply in Tuesday’s session despite reporting a year-on-year jump in revenue and profitability for the June quarter. Sequentially, the company posted a decline in sales growth, though margins improved. Investors appeared cautious due to domestic API weakness and rising competitive pressures, even as the company expanded exports and its CDMO pipeline.
The stock in focus is Bajaj Healthcare Ltd, which has a market capitalization of Rs 1,599.53 crore. The stock opened at Rs 535 and fell to an intraday low of Rs 491.40, compared to its previous close of Rs 529.65, marking a decline of nearly 7.2 percent during the session.
What’s the News?
Quarter-on-Quarter (Q1FY26 vs Q4FY25): Revenue from operations declined 3.2 percent from Rs 154 crore to Rs 149 crore. Profit before tax grew 27.3 percent from Rs 11 crore to Rs 14 crore, while net profit rose 9.1 percent from Rs 11 crore to Rs 12 crore. EBITDA margin improved from 15.1 percent to 17 percent, and PAT margin rose slightly from 6.9 percent to 8.1 percent.
Year-on-Year (Q1FY26 vs Q1FY25): Revenue increased 12.9 percent from Rs 132 crore to Rs 149 crore. Profit before tax jumped 55.6 percent from Rs 9 crore to Rs 14 crore, and net profit surged 71.4 percent from Rs 7 crore to Rs 12 crore. However, the EBITDA margin contracted from 19.1 percent to 17 percent, while PAT margin improved from 6.9 percent to 8.1 percent.
Comments from Management
On the overall performance, Anil Jain, Managing Director of Bajaj Healthcare, said, “Q1 FY26 marks a strong and promising start to the new fiscal year for Bajaj Healthcare, despite a challenging pricing environment in certain segments.” He noted that revenue from operations rose 12.5 percent year-on-year to ₹1,488.4 million (Rs 149 crore), while PAT grew by 66 percent to ₹118.3 million (Rs 12 crore), “reflecting improved profitability and sharper execution across business segments.”
Commenting on margins and operating performance, Jain added, “EBITDA remained steady at ₹253.9 million (Rs 25 crore), with margins improving sequentially to 17.0% from 15.1%, reflecting better product mix and improved operating leverage, even amidst input cost pressures.”
On segment-wise momentum, Jain stated, “Segment-wise, our API export business delivered standout growth of 68.4% YoY, supported by growing demand in regulated markets and the ramp-up of commercial CDMO supplies. Formulations saw 41.1% year-on-year growth, led by deeper market penetration and new strategic partnerships.”
Addressing portfolio strategy, he said, “Due to pricing headwinds in the domestic API segment, the company has strategically realigned its portfolio towards value-added exports and differentiated molecules to reinforce growth and profitability.”
On regulatory progress and product pipeline, he remarked, “We received three new CEP approvals and one ASMF approval from European regulatory authority, further strengthening our position in regulated EU/UK markets. Following product approvals, validation batch supplies have commenced for a few molecules under CDMO agreements.” He added, “Five DMFs were filed with the UK MHRA. To date, we have filed a total of nine CEPs, out of which seven have been approved. Four additional CEP filings are in process.”
Operational Highlights
Domestic API revenue declined from Rs 89.3 crore to Rs 72.6 crore quarter-on-quarter, reflecting price pressure in the Indian market. In contrast, API exports rose sharply from Rs 40.8 crore to Rs 52.2 crore quarter-on-quarter. Formulation revenue remained stable at Rs 24 crore on a sequential basis.
Compared to the previous year, API exports increased from Rs 31 crore to Rs 52.2 crore, and formulation revenue grew from Rs 17 crore to Rs 24 crore. However, domestic API revenue fell year-on-year from Rs 84.2 crore to Rs 72.6 crore.
About the Company
Bajaj Healthcare Ltd, incorporated in 1993, is a diversified pharmaceutical company engaged in manufacturing APIs, intermediates, formulations, and nutraceuticals. Its business spans domestic and global markets, with exports to regulated geographies like the EU, UK, and Australia. The company is increasingly focused on CDMO, CNS segment molecules, and backward-integrated manufacturing. It has filed several DMFs and CEPs as part of its regulatory strategy.
Manan Gangwar
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