Ashish Kacholia stock crashes 19% after announcing Q3 results and cutting its FY26 revenue guidance

Synopsis: Beta Drugs Limited reports 15.59% QoQ revenue drop and a 30.28% QoQ decline in net profit in Q3 FY26 results, and also cuts its FY26 revenue guidance to Rs. 400 crore.

This Ashish Kacholia Stock, engaged in manufacturing oncology drugs like sterile injections, lyophilized injections, tablets, and capsules for cancers such as breast, lung, leukemia, lymphoma, and myeloma, with backward integration for APIs, crashed 19.55 percent after the company reported weak December quarterly results with a 30.28 percent QoQ decrease in net profit.

With a market capitalization of Rs. 1,165.74 crores, the share of Beta Drugs Limited has reached an intraday low of Rs. 1,105 per equity share, crashing nearly 19.55 percent from its previous day’s close price of Rs. 1,373.60. 

Since then, the stock has declined and is currently trading at Rs. 1,141.30 per equity share. It is nearing its 52-week low and is trading at a discount of 42.94 percent from its 52-week high of Rs. 2,000 per equity share.

Q3 FY26 Result Walkthrough

Coming into the quarterly results of Beta Drugs Limited, the company’s consolidated revenue from operations decreased by 1.16 percent YOY, from Rs. 88.29 crore in Q3 FY25 to Rs. 87.27 crore in Q3 FY26, and decreased by 15.59 percent QoQ from Rs. 103.39 crore in Q2 FY26.

In Q3 FY26, Beta Drugs Limited’s consolidated net profit decreased by 4.80 percent YOY, reaching Rs. 8.52 crore compared to Rs. 8.95 crore during the same period last year. As compared to Q2 FY26, the net profit has decreased by 30.28 percent, from Rs. 12.22 crore. The basic earnings per share decreased by 9.77 percent and stood at Rs. 8.40 as against Rs. 9.31 recorded in the same quarter in the previous year, FY2025.

Beta Drugs Limited’s revenue and net profit have grown at a CAGR of 31.81 percent and 36.08 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 27 percent and 25.9 percent, respectively. Beta Drugs Limited has an earnings per share (EPS) of Rs. 42.02, and its debt-to-equity ratio is 0.70x.

Reason Behind the Stock Fall

Beta Drugs Limited shares crashed nearly 19.55 percent after the company cut its FY26 revenue outlook from Rs. 420 crore to Rs. 400 crore. This revision is due to its decision to reduce focus on Platin sales, which generated Rs. 46.5 crore in FY25 and Rs. 31.6 crore up to December 2025, with no further Platin sales expected in Q4. The company said this is a strategic move to focus more on higher-margin products.

Future Outlooks for FY27

Beta Drugs Limited expects to close FY27 with revenue of around Rs. 530 crore and EBITDA margins of about 24 percent, supported by stronger growth in its own branded portfolio and exports. The company plans to drive expansion through new NDDS product launches and deeper penetration into new customer accounts. Its Methotrexate Oral Solution, the first NDDS product, is expected to contribute about Rs. 13 crore in FY27.

Additionally, two more NDDS approvals are expected during FY27, which should begin contributing to revenue from the fourth quarter. Export growth is projected to come from commercialization of product registrations in Algeria, Mexico, and the Philippines. Together, these initiatives are aimed at improving profitability and strengthening the company’s long-term growth trajectory.

Shareholding Pattern

In December 2025, Beta Drugs Limited had a majority stake held by the promoters at 64.90 percent, foreign institutional investors at 1.14 percent, domestic institutional investors at 1.90 percent, and the public at 32.07 percent. Ace investor Ashish Kacholia holds a 5.78 percent stake in Beta Drugs Limited, valued at Rs. 145.10 crores, consisting of 12,63,826 shares. 

Company Overview

Beta Drugs Limited was incorporated on September 21, 2005, and is a pharmaceutical company specializing in oncology treatments. It manufactures sterile injections, lyophilized injections, tablets, and capsules for various cancers, including breast, lung, head and neck, colorectal, ovarian, gastric, testicular, renal, prostate, brain tumors, leukemia, lymphoma, and myeloma. 

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