Jagsonpal Pharma Hits 10% Upper Circuit on Acquiring 85% Stake in Aequitas Healthcare

Synopsis: Jagsonpal Pharmaceuticals Limited has announced a definitive agreement to acquire an 85% equity stake in Mumbai-based Aequitas Healthcare Private Limited (Aequitas) for Rs 20.8 crore.

The acquisition marks the company’s strategic entry into the hospital pharmaceutical segment, expanding beyond its traditional prescription business and strengthening its presence across India’s healthcare ecosystem. Jagsonpal will fund the deal entirely with internal resources.

Jagsonpal Pharmaceuticals Limited is currently trading at Rs 260.48 with a positive circuit of above 10 percent. The stock opened at Rs 243.69 and struck a day high of Rs 263.3 , and a day’s low so far is Rs 238.02. The current market capitalisation of the company is Rs 1,722 crore and is trading at p/e ratio of 38.6 slightly higher than the industry peer median of 34.63.

Jagsonpal sells mostly to doctors and pharmacies. In this acquisition, the company enters hospital procurement, where hospitals and institutional healthcare providers receive medicines directly. Jagsonpal can diversify its distribution channels and enter a fast-growing pharmaceutical market.

As per the pact, Jagsonpal will acquire an 85 per cent stake in Aequitas Healthcare for Rs 20.8 crore, and the existing promoters will continue to hold a 15 per cent stake and run the business. The acquisition is to be funded entirely from its internal accruals and will enable the company to grow without incurring any debt or diluting its equity.

Founded in 2017, Aequitas has built relationships with several leading hospital chains across India and reported FY26 revenue of approximately Rs 53 crore. According to the company, the hospital segment currently contributes around 10 percent of India’s pharmaceutical industry sales and is growing faster than the broader pharmaceutical market.

Financials

Kothari Industrial Corporation Limited reported revenue from operations of Rs 64.2 crore in Q4 FY26 against Rs 72.95 crore in Q3 FY26 and Rs 58.56 crore in Q4 FY25. Revenue fell 11.95 percent quarter-on-quarter but had a slight increase of 9.63 percent year-on-year, indicating higher business activity compared to the previous year.

The company remained profitable despite slight deviation in the topline. Q4 FY26 net profit reduced to Rs 8.76 crore from Rs 10.95 crore in Q3 FY26 and increased from Rs 13 crore in Q4 FY25, down 20 percent QoQ and up 33.13 percent YoY. Consequently, earnings per share (EPS) declined to Rs 1.31 in Q4 FY26 compared to Rs 1.64 in Q3 FY26.

Profitability ratios of the company stands healthy with ROCE at 22.7 percent and ROE at 17.3 percent. However, the debt-to-equity ratio stood at a relatively moderate 0.03x, suggesting that the company’s leverage remains under control.

Managing Director Manish Gupta said the acquisition marks a strategic milestone, providing Jagsonpal with a strong entry into the hospital segment. COO Amrut Medhekar added that the deal strengthens the company’s transformation into an omnichannel specialty healthcare business.

Jagsonpal Pharmaceuticals Limited is a pharmaceutical company operating in India for over 50 years. It has a strong footprint in gynaecology, orthopaedics and dermatology with 20+ brands in the top five in their respective molecule categories and a nationwide sales force of over 1,000 professionals. 

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