Pharma Stock Skyrockets 16% After Announcing Q3 Results and Dividend

Synopsis: Shares of Innova Captab Ltd surged 16% after the company reported 42% YoY Q3 revenue growth, strong profit performance and announced an interim dividend of ₹2 per share for FY26.

This is an integrated pharmaceutical company in India with a presence across the pharmaceutical value chain is now in focus after it reported Q3 results with 42% growth in net profit and also announced a dividend.

With a market capitalisation of Rs. 3,882 cr, the shares of Innova Captab Ltd closed at Rs. 678.50 per share, increasing 16% in today’s market session, making a high of Rs. 760, up from its previous close of Rs. 656.95 per share.

Q3 Results & Dividend Announcement

YoY performance

Revenue from operations increased by 42%, rising from Rs. 316 cr in Q3FY25 to Rs. 450 cr in Q3FY26, while total expenses grew by 44.0% from Rs. 275 cr to Rs. 396 cr. EBITDA grew by 40% from Rs. 51 cr to Rs. 71 cr. Net profit improved by 23.5%, increasing from Rs. 34 cr to Rs. 42 cr.

QoQ performance 

Revenue from operations rose by 18% from Rs. 380 cr in Q2FY26 to Rs. 450 cr in Q3FY26, with total expenses up by 15% from Rs. 345 cr to Rs. 396 cr. Net profit recorded a strong growth of 40.0%, increasing from Rs. 30 cr to Rs. 42 cr.

The Board of Directors of Innova Captab Ltd has declared an interim dividend of Rs. 2 per equity share, which is 20% of the face value of Rs. 10 per share for the financial year 2025-26.

Management Commentary 

Management highlighted that the company recently received GMP compliance certifications from the UK-MHRA for its Cephalosporin Baddi unit and from PIC/S (SMDC, Ukraine) for the Jammu facility, reinforcing its adherence to global quality standards and enabling deeper penetration into international markets.

The management emphasized that ongoing strategic initiatives are yielding tangible results, strengthening the company’s competitive position and operational resilience. Both business segments are well positioned to deliver sustainable, high-quality growth through FY26 and beyond, with a continued focus on long-term stakeholder value creation.

About the company 

Innova Captab Ltd is an integrated Indian pharmaceutical company involved across the pharmaceutical value chain, including research & development, manufacturing, drug distribution, marketing and exports. It provides Contract Development and Manufacturing Organization (CDMO) services to many top Indian pharma firms and also markets a wide range of domestic and international branded generic medicines. 

It has delivered strong financial performance, with a ROCE of 14.6% and ROE of 14.3%, indicating efficient use of capital and equity. The company maintains a low debt-to-equity ratio of 0.33 and has achieved an impressive profit growth of 35.7% CAGR over the past five years, showcasing robust operational growth and consistent value creation.

As of Q3FY26, promoter holding stands at 50.90%. FII’s increased their stake from 0.08% in Q2FY26 to 0.10 in Q3FY26. DII’s also rose to 20.24% from 20.17%. Public holding reduced from 28.86% to 28.76% over the same period.

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