Synopsis: Zenith Drugs Limited announced that it has secured a new government tender from Madhya Pradesh Public Health Services Corporation Limited (MPPHSCL). The order win comes amid the company’s steady financial growth over the past few years, with revenue crossing Rs. 135 crore in FY25.
Zenith Drugs Limited is a pharmaceutical company engaged in the manufacturing and marketing of generic medicines and healthcare products. The company operates across multiple therapeutic categories and supplies medicines to both government institutions and private markets. Over the years, Zenith Drugs has increasingly focused on institutional and tender-based business, which has helped strengthen its order pipeline and expand its presence in the domestic pharmaceutical market.
Zenith Drugs Limited currently has a market capitalization of around Rs. 73 crore. The stock was trading near Rs. 42.35, gaining nearly 7% intraday compared to previous day close of Rs. 39.65 after the latest tender announcement.
The company’s valuation metrics remain relatively attractive compared to several peers, with a P/E ratio of 7.69 and a price-to-book ratio of 1.17. The company’s book value stands at approximately Rs. 40.46 per share.
Zenith Drugs Limited has received a tender from Madhya Pradesh Public Health Services Corporation Limited (MPPHSCL) worth Rs. 45,63,145. The order further strengthens the company’s institutional business segment and highlights its continued participation in government healthcare procurement programs.
Government tenders remain an important revenue contributor for pharmaceutical companies, particularly in the generic medicine segment, where large-volume institutional supply contracts help improve business visibility.
The latest order adds to Zenith Drugs’ growing list of institutional contracts received in recent quarters. The company has previously secured multiple supply tenders from various state healthcare agencies and medical service corporations.
The company posted annual revenue of approximately Rs. 135.9 crore, compared to Rs. 133.7 crore in FY24, reflecting a modest 1.6% year-on-year growth. However, profitability declined during the year. Net profit stood at around Rs. 7.2 crore in FY25, compared to Rs. 9.5 crore in FY24, registering a decline of nearly 25% YoY.
Operating profit came in at approximately Rs. 13.6 crore, while EBITDA stood near Rs. 16.2 crore during FY25. Despite pressure on profitability, the company has delivered healthy long-term growth. Revenue CAGR over the last three years stood at around 13.6%, while net profit CAGR remained close to 31%.
The latest government tender win reinforces Zenith Drugs’ continued focus on institutional pharmaceutical supply business. Although FY25 profitability remained under pressure, the company continues to maintain steady revenue growth and healthy long-term expansion trends. Continued participation in government healthcare tenders could support business momentum in the coming quarters.
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