Pharma stock jumps 13% after reporting 126% YoY increase in net profit

Synopsis: Shares of Sakar Healthcare Ltd surged 13% after the company reported a strong Q3 FY26 performance, with profit more than doubling YoY and QoQ. Robust revenue growth, operating leverage, and improving earnings quality boosted investor confidence despite slightly higher finance costs.

The shares of this company, which is in the business of manufacturing research & development of pharmaceutical products, had its shares in momentum today after the company reported robust results with PAT more than doubling and growth in several key performance indicators. 

With the market cap of Rs 993 crore, the shares of Sakar Healthcare Ltd have skyrocketed more than 13% and reached a high at Rs 465, compared to the previous day’s closing price at Rs 409.80. The shares are trading at a PE of 51.1, whereas the industry PE is at 28.9.

Q3 Result highlights

Sakar Healthcare Ltd had a strong quarter on the revenue front. Revenue from operations came in at Rs 70.34 crore in Q3 FY26, up 62% YoY compared to Rs 43.42 crore and % QoQ compared to Rs 57.56 crore, respectively. Similarly, the profit jumped to Rs 10.25 crore, a sharp 126% YoY jump from Rs 4.53 crore and the same 126% QoQ jump from Rs 4.54 crore.

The company observed a rise in finance costs during the period, which is a result of increased working capital and additional borrowing for scaling up the business. The finance cost for the quarter increased to Rs 177.54 lakh, which is a slight rise in the interest outgo. However, the company also observed a MAT credit of Rs 70.34 lakh, which contributed to offsetting the tax expense and helped the company in net profitability.

About the company and more 

Sakar Healthcare Ltd has transformed from being a contract manufacturing-oriented organisation to an API-integrated pharmaceutical major with a robust presence in both regulated and emerging markets. The organisation has established itself as a credible player in the industry through its WHO- and EU-GMP-compliant manufacturing facilities, a diversified global network of partners, and an increasingly robust product pipeline led by oncology. 

This list of clients highlights Sakar Healthcare Ltd’s prominent position in the pharma outsourcing industry, with long-term associations with some of the leading Indian and global players in the industry, like Zydus Lifesciences Ltd, Torrent Pharmaceuticals Ltd, Intas Pharmaceuticals Ltd, Cadila Pharmaceuticals Ltd, Abbott India Ltd, Cipla Ltd, Glenmark Pharmaceuticals Ltd, Wockhardt Ltd, Biochem Pharmaceutical Industries, and global giants like Merck Ltd and Baxter. 

The diversity of Sakar’s client base in the branded generics, MNC, and speciality pharma segments also reflects the company’s high level of regulatory compliance and execution capabilities.

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