Synopsis: Pharma stock jumps 7% after 271% YoY profit surge in Q3FY26; strong formulations growth and Rs 22 crore order book drive earnings momentum.
The shares of this company, which operates through divisions including Multi-Speciality, Glyduz, Servetus, Bal Vedics (Ayurvedic), and Zennova, came into focus today after the company reported strong quarterly earnings.
With the market capitalization of Rs 121 crore, Bal Pharma Ltd’s shares on Thursday made a day high of Rs 76.19 per share, up by 7.3 percent from its previous day’s closing price of Rs 71 per share. The share trades at an undervalued P/E of 14.9x, nearly half of the industry P/E of 29.8x.
Results Highlights
QoQ View: The revenue from operations grew by 18.51 percent to Rs 87.7 crore in Q3 FY26 from Rs 74 crore in Q2 FY26, and EBDIT grew by 66.49 percent to Rs 9.54 crore in Q3 FY26 from Rs 5.73 crore in Q2 FY26. Accompanied by a net profit growth of 148 percent to Rs 1.79 crore in Q3 FY26 from Rs 0.72 crore in Q2 FY26.
YoY View: The revenue from operations grew by 20 percent to Rs 87.7 crore in Q3 FY26 from Rs 73.2 crore in Q3 FY25, and EBDIT grew by 23 percent to Rs 9.54 crore in Q3 FY26 from Rs 7.75 crore in Q3 FY25. Accompanied by a net profit growth of 271 percent to Rs 1.79 crore in Q3 FY26 from Rs 0.52 crore in Q3 FY25, resulting in an EPS growth of 273 percent to Rs 1.12 per share in Q3 FY26
Revenue Driver
The Formulations segment delivered robust performance in Q3FY23, with revenue rising 30.10 percent to Rs 36.4 crorecompared to Rs 27.9 crore in Q3FY22. The segment continues to be a key growth engine, increasing its contribution to total revenue to 47.84 percent from 40.71 percent a year ago.
For the nine months, revenue stood at Rs 112.3 crore versus Rs 83.7 crore in 9MFY22, reflecting a strong growth of 34.13 percent. The sustained momentum highlights consistent demand traction across key markets and improved execution within both domestic and export formulations portfolios.
The domestic business outperformed, registering a robust 42.74 percent YoY growth in Q3FY23, while export formulations grew 24.41 percent. The export-to-domestic mix shifted to 66:34 from 69:31, indicating stronger domestic traction and a balanced geographic diversification strategy.
In 9MFY23, domestic formulations rose 30.27 percent to Rs 33.1 crore, while exports increased 35.82 percent to Rs 79.2 crore. The segment’s order book remains healthy at Rs 22 crore as of Q3FY23, providing clear revenue visibility and supporting sustained medium-term growth prospects.
API Business: The API segment reported revenue of Rs 39.7 crore in Q3FY23 compared to Rs 40.7 crore in Q3FY22, reflecting a marginal moderation. Its contribution to total revenue declined to 52.16 percent from 59.29 percent as the formulations business expanded at a faster pace during the quarter.
The exports-to-domestic mix stood at 74:26 in Q3FY23 versus 71:29 in Q3FY22, highlighting a higher export orientation. API exports grew 1.48 percent YoY to Rs 29.3 crore. The order book remains strong at Rs 49 crore, supported by the company’s integrated manufacturing model and stable demand visibility.
Incorporated in 1987, Bal Pharma Ltd is a Bangalore-based, publicly listed pharmaceutical company specializing in the development and manufacturing of Active Pharmaceutical Ingredients (APIs), generic formulations, and Ayurvedic products. The company operates multiple cGMP-approved facilities, offering over 200 formulations across therapeutic areas like cardiology, diabetology, and dermatology.
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