10% upper circuit: Pharma stock soars after commencing antibiotic production at its new plant

Synopsis: Syschem India Ltd’s shares hit 10% upper circuit as the company began commercial production at its new “Ganga” unit (600 MT) and expanded “Saru” unit (1,200 MT), enhancing antibiotic capacity and meeting rising market demand.

This API and bulk drug manufacturer is in the spotlight, which hit 10% upper circuit after announcing the start of commercial production at its new and expanded manufacturing facilities.

With a market capitalisation of Rs. 218 cr, the shares of Syschem India Ltd are currently trading at Rs. 50 per share, hit an upper circuit of 10% in today’s market session, making a high of Rs. 51.70, up from its previous close of Rs. 47 per share.

What’s the news

Syschem (India) Limited has announced the commencement of commercial production at its new and expanded manufacturing units, effective 5 January 2026. The company had earlier received board approval for setting up a new production unit and expanding its existing unit, and after successful trial runs, full-scale production has now begun.

The new production unit, named “Ganga”, is located in Village Bargodam, Tehsil Kalka, District Panchkula, Haryana. It has an installed capacity of 600 MT per annum and will manufacture key antibiotics, including Cloxacillin Sodium, Dicloxacillin Sodium, and Flucloxacillin Sodium. 

The addition of this unit is expected to enhance overall production capacity, improve operational efficiency, and cater to growing market demand without any material deviation from the company’s earlier plans.

In addition, the company has commenced commercial production at its expanded “Saru” unit, also located in Bargodam, Kalka. This unit focuses on the production of Amoxicillin and has an increased capacity of 1,200 MT per annum. The expansion is aimed at strengthening the company’s antibiotic portfolio and meeting rising market demand efficiently.

With the addition of these two units, Syschem is positioned to enhance its operational capabilities, expand production scale, and better serve its domestic and export markets. 

About the company 

Syschem (India) Limited (SIL) is a company engaged in the manufacturing of bulk drugs, intermediates, specialty chemicals, and contract manufacturing services. The company is led by a dedicated team of techno-commercial professionals with extensive experience in the bulk drug industry.

It specialises in manufacturing Active Pharmaceutical Ingredients (APIs) and intermediates, including antibiotics such as Amoxicillin Trihydrate, Ampicillin Trihydrate, Cloxacillin Sodium, Dicloxacillin Sodium, Flucloxacillin Sodium (for export), Cephalexin, Cefixime, and Cefadroxil. The company also produces specialty solvents like DMF, Acetonitrile, Ethyl Acetate, and THF.

Sales of the company fell from Rs. 109.32 cr in Q1FY6 to Rs. 103.60 cr in Q2FY26. Operating profit increased to Rs. 3.30 cr from Rs.  2.46 cr. Net profit also rose to Rs. 1.90 cr from Rs. 1.67 cr.

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