Caplin Point Laboratories shares in focus after strong Q3 results announcement; Check details

Synopsis: The pharma stock gained attention after Q3FY26 results, with revenue up 10.1% YoY to ₹542.8 crore, EBITDA rising 15.3% QoQ, and profit increasing 18.4% QoQ, driven by Latin America growth.

A small-cap company engaged in the manufacturing and sourcing of APIs, finished formulations, R&D, clinical research with presence in Latin America, Africa, USA and other nations, is in stoplight after announcing strong Q3 Results.

With a market capitalization of Rs. 14,460.47 crore, the shares of Caplin Point Laboratories Limited were trading at Rs. 1,904.90, down by 0.24 percent from its previous day’s closing price of Rs. 1,909.50 per equity share. 

Q3FY26 Results

In Q3FY26, revenue increased to Rs. 542.77 crore, registering a YoY growth of about 10.1 percent from Rs. 492.96 crore in Q3FY25, while rising marginally by 1.6 percent QoQ from Rs. 534.04 crore in Q2FY26, indicating steady top-line momentum.

EBITDA stood at Rs. 223.4 crore in Q3FY26, up 1.8 percent YoY from Rs. 219.5 crore in Q3FY25 and showing a strong QoQ growth of around 15.3 percent over Rs. 193.7 crore in Q2FY26, reflecting improved operating efficiency sequentially.

Profit for the quarter came in at Rs. 165.9 crore, marking a YoY increase of approximately 3.6 percent from Rs. 160.2 crore and a healthy QoQ growth of about 18.4 percent compared with Rs. 140.1 crore in Q2FY26, highlighting better earnings traction quarter-on-quarter.

In 9MFY26, the company’s geographical revenue mix was heavily skewed toward Latin America, which accounted for 76 percent of total revenue, followed by the U.S. at 20 percent and Africa at 4 percent. From a business perspective, the generics segment remained the primary contributor with a 75 percent share, while branded generics made up the remaining 25 percent, reflecting the company’s continued focus on volume-driven generic formulations alongside a smaller branded portfolio.

Other Updates

• Strong and profitable growth continues in Central and South America, supported by an end-to-end business model and a $25 million revenue pipeline from new tenders in Central America.
• Mexico remains a major growth driver with 25 product approvals, 100+ products in the filing pipeline, and plans to set up a manufacturing and packaging facility for freight-heavy formulations.
• Chile operations gained traction with over 125 product licenses, expanding private market sales, and the country is expected to become a top-5 market within 24 months.
• Expansion into high-value segments continues with GLP-1 filings in Central America, oncology injectables nearing commercialization, and backward integration through the first API unit targeting 60 percent ANDA integration over time.
• In regulated markets, Caplin Steriles delivered robust growth, holding 55 US ANDA approvals, securing EU GMP renewal, launching complex injectables, and scaling capacity with new automated sterile lines, while its US front-end business crossed $8.7 million revenue in 15 months with 29 products launched.

Management View

According to the Chairman, the company’s Q3 and nine-month FY26 performance reflects the steady execution of a long-term, differentiated strategy, marked by strong margins, rising profitability, healthy cash generation, and continued investments in capacity, technology, and future platforms.

He highlighted the strength of the end-to-end model in emerging markets, progress in Latin America, GLP-1, oncology, APIs, and the “China 2.0” strategy, alongside Caplin Steriles’ advancement in regulated markets through higher-complexity products, automation, and early success of its US front end, positioning the company for sustainable, long-term value creation.

Caplin Point Laboratories Limited is a rapidly growing pharmaceutical company focused mainly on emerging markets in Latin America and Africa, backed by a distinctive business model. It has delivered consistent, high-quality growth in revenue, profitability, and cash flows over the past 15 years, supported by advanced manufacturing capabilities across a wide range of dosage forms, along with an expanding presence in regulated markets like the US through its subsidiaries.

Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 18 percent, a profit CAGR of 20 percent and a price CAGR of 33 percent, reflecting both its operational performance and market confidence.

A return on equity (ROE) of about 22.7 percent and a return on capital employed (ROCE) of about 25.8 percent, and debt to equity ratio at 0 demonstrate the company’s financial position. The stock is currently trading at a P/E of 24.5x higher as compared to industry P/E of 28.9x.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

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