Value Added Product Mix Shift
Expected: CurrentHIGH confidence
What: API Revenue Share: Doubled YoY
Impact: 178 bps margin expansion
“Sales mix changing with higher share of API revenue... API business more than doubled year-on-year in the quarter.”
Themis Medicare Ltd: Is It a Deep Value Opportunity?
AverageAccelerating
As of , Themis Medicare Ltd (Pharma - API) has a deep value score of 45/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -27%.
Themis Medicare Ltd Key Facts
- Market Cap
- ₹898 Cr
- Value Score
- 45/100
- Margin of Safety
- -81%
- PAT Growth YoY
- +900%
- Revenue Growth YoY
- -4%
- OPM
- 11.0%
Falling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
💰Trading 81% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
CurrentHIGH
2. Regulatory Approval Or License Win
Soon / March 2026HIGH
3. Geographical Expansion
0-3 yearsMEDIUM
Key Risks
1. Disruption in a significant high-margin line of business due to regulatory inves
HIGH2. Sluggishness in the formulations business impacting overall revenue growth
MEDIUMSector-Specific Signals
API Business Growth (YoY)100%++100%
R&D as % of Revenue3%0%
Hospital Business Revenue Share (9M FY26)49%+11%
API & Others Revenue Share (9M FY26)23%-19%
Key Numbers
PAT Growth YoY
+900%
Inflection Up
Revenue YoY
-4%
Stable
Operating Margin
11.0%
+500 bps YoY
Current Price
₹98
Dividend Yield
0.51%
3Y PAT CAGR
-26%
Market Cap
898 Cr
Valuation
Significantly OvervaluedWhy Are Themis Medicare Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Regulatory Approval Or License Win
Expected: Soon / March 2026HIGH confidence
What: Regulatory Review: Positive development expected
“the matter is under review with regulators and a positive development on this is expected soon.”
Geographical Expansion
Expected: 0-3 yearsMEDIUM confidence
What: Target Markets: CIS, Latin America, GCC
“Expansion in new RoW Markets in Phase I (0 to 3 years - CIS, Latin America, GCC)”
EBITDA growth of 14.9% YoY
MEDIUM confidence
What: EBITDA growth of 14.9% YoY
“Despite this, cost rationalization measures undertaken helped improve EBITDA margin by 178 bps to 10.9%.”
What Are the Key Risks for Themis Medicare Ltd?
Earnings deceleration risks from management commentary
Disruption in a significant high-margin line of business due to regulatory inves
HIGHTrigger: Regulators are currently investigating a major line of business, causing a two-quarter disruption.
Management view: Cooperating with regulators; expecting resolution by March 2026 or sooner.
Monitor: regulatory
Sluggishness in the formulations business impacting overall revenue growth
MEDIUMTrigger: Muted performance in formulations hampered profitability and offset API growth.
Management view: Focusing on high-margin brands and products within the hospital business.
Monitor: commodity
What Is Themis Medicare Ltd's Management Saying?
Key quotes from recent conference calls
“regulators are currently investigating the matter and we expect a positive development on this by March 2026. [Previous Regulatory Resolution guidance]”
“In our Hospital business, we aim to expand our chain hospital contracts and our presence in nursing homes, while focusing more on high margin products. [Initiative: Hospital Business Expansion]”
“Expansion in new RoW Markets in Phase I (0 to 3 years - CIS, Latin America, GCC) [Initiative: New Target Markets (Phase I)]”
“Disruption in a significant line of Business continued through this quarter, however, the matter is under review with regulators. [Risk (regulatory): HIGH]”
What Did Themis Medicare Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹90.13 Cr
YoY -3.9%QoQ +15.6%
Why: Growth in the API business was offset by sluggishness in the formulations business during the quarter.
Revenue recovered sequentially from Q2 but remains slightly lower than the previous year's high base.
EBITDA
₹9.80 Cr
YoY +14.9%Margin 10.9%
Why: Cost rationalization measures undertaken helped improve EBITDA margin by 178 bps despite top-line pressure.
The company achieved a positive turnaround in profitability after two quarters of EBITDA losses.
PAT
₹10.09 Cr
YoY +1843.7%
Why: Profitability was driven by a higher share of API revenue and a significant contribution from the share of profit from associates and JV.
PAT includes ₹5.52 Cr from share of P/L of Associates & JV, significantly boosting the bottom line.
Other Highlights
• API business more than doubled year-on-year in the quarter.
• R&D investment maintained at 3% of revenue.
• EBITDA margin improved by 178 bps YoY to 10.9%.
What Sector Metrics Matter for Themis Medicare Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
API Business Growth (YoY)
100%+
YoY +100%
Why: Strong traction in existing API molecules.
R&D as % of Revenue
3%
YoY 0%QoQ 0%
Why: Maintained investment to create differentiated products in critical therapeutic areas.
Hospital Business Revenue Share (9M FY26)
49%
YoY +11%
Why: Strategic focus on becoming a leader in the hospital business in India.
API & Others Revenue Share (9M FY26)
23%
YoY -19%
Why: Shift in business mix; however, API specifically grew in Q3.
Manufacturing Facilities
3
YoY 0QoQ 0
Export Countries
44+
YoY 0QoQ 0
Total Debt to Equity
0.21
YoY 0QoQ 0
Market Cap (Dec 31, 2025)
₹927 Cr
QoQ -₹202 Cr
Why: Market valuation fluctuation.
What Is Themis Medicare Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: CAUTIOUS
Guidance Changes
REAFFIRMED
Regulatory Resolution Timeline: By March 2026 → Expected soon
How Fast Is Themis Medicare Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -4% | +1% | Stable |
| PAT (Net Profit) | +900% | -26% | Inflection Up |
| OPM | 11.0% | +500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Themis Medicare Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Themis Medicare Ltd's deep value score?
Themis Medicare Ltd has a deep value score of 45/100 (rated Average). This score is calculated from three components
- Earnings Score: 36/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 13/25 — operational quality (margins, revenue growth, valuation)
Is Themis Medicare Ltd fundamentally improving?
Themis Medicare Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +379%
- Previous Quarter PAT Growth (QoQ): +75%
- 2 Quarters Ago PAT Growth (QoQ): -47%
- PAT Acceleration: +213.0pp (profits are accelerating)
- 2 consecutive quarters of positive PAT growth
Why is Themis Medicare Ltd underperforming despite good earnings?
Themis Medicare Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -27%
- 6-Month Return vs Nifty 500: -14%
- 3-Month Return vs Nifty 500: +18%
- Yet average quarterly PAT growth is +135% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Themis Medicare Ltd?
Themis Medicare Ltd's earnings momentum is Accelerating — profit growth is speeding up.
- PAT QoQ progression: -47% → +75% → +379% (2Q ago → 1Q ago → latest)
- Acceleration: +213.0pp
- PAT YoY Growth: +900%
Is Themis Medicare Ltd undervalued?
Themis Medicare Ltd's valuation metrics
- Price-to-Book (PB): 2.6x
- Margin of Safety: -79% (appears overvalued)
What are the revenue and margin trends for Themis Medicare Ltd?
Themis Medicare Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +16%
- Average Quarterly Revenue Growth: +11%
- Revenue Acceleration: -10.3pp
- Latest OPM Change: +14.8pp (margins expanding)
- Average OPM Change: +6.3pp
- Revenue YoY: -4%
What is Themis Medicare Ltd's trailing twelve month (TTM) performance?
Themis Medicare Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-18 Cr
- TTM PAT Growth: -80.0% YoY
- TTM Revenue: ₹338 Cr
- TTM Revenue Growth: -21.8% YoY
- TTM Operating Margin: -3.2%
What sector does Themis Medicare Ltd belong to?
Themis Medicare Ltd key facts
- Sector: Pharma - API
- Market Cap: ₹898 Cr
- Rank in Pharma - API: #1 by value score
- Overall rank among all deep value stocks: #11
Is Themis Medicare Ltd a good deep value opportunity to study?
Themis Medicare Ltd shows limited deep value signals currently — score is 45/100 (Average). Monitor for improvement.
- Value Score: 45/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -27% vs Nifty 500
What is the bull and bear case for Themis Medicare Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 2 consecutive quarters of positive PAT growth
- Operating margins expanding
Risk Factors (Bear Case)
- Appears overvalued despite underperformance
How does the Pharma - API sector look for deep value?
Pharma - API deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 45/100
- Avg PAT acceleration: +213.0pp
- Top pick: Themis Medicare Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Themis Medicare Ltd?
Themis Medicare Ltd has 4 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift
- Regulatory Approval Or License Win
- Geographical Expansion
- EBITDA growth of 14.9% YoY
What are the key risks in Themis Medicare Ltd?
Themis Medicare Ltd has 2 key risks worth monitoring
- Disruption in a significant high-margin line of business due to regulatory inves
- Sluggishness in the formulations business impacting overall revenue growth
What did Themis Medicare Ltd's management say in the latest earnings call?
In Q3 FY26, Themis Medicare Ltd's management highlighted
- "regulators are currently investigating the matter and we expect a positive development on this by March 2026. [Previous Regulatory Resolution guidanc..."
- "In our Hospital business, we aim to expand our chain hospital contracts and our presence in nursing homes, while focusing more on high margin products..."
- "Expansion in new RoW Markets in Phase I (0 to 3 years - CIS, Latin America, GCC) [Initiative: New Target Markets (Phase I)]"
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.