Operating Leverage Inflection
Expected: OngoingHIGH confidence
What: EBITDA Margin: 28%
“this improvement in EBITDA margin was primarily driven by increased revenue, driving positive operating leverage.”
Shilpa Medicare Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +39.7%Weak5w Streak
In , Shilpa Medicare Ltd (Pharma - API & CRAMS) is outperforming Nifty 500 with +39.7% relative strength. Fundamentals: Weak. On a 5-week streak.
Shilpa Medicare Ltd Key Facts
- PE Ratio
- 45.0x
- Market Cap
- ₹7,953 Cr
- PAT Growth YoY
- +41%
- Revenue Growth YoY
- +29%
- OPM
- 28.0%
- RS vs Nifty 500
- +39.7%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
🌐FII stake increased 1.3% this quarter
💰Trading 49% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Operating Leverage Inflection
OngoingHIGH
2. New Product Or Brand Launch
Q4 FY26HIGH
3. Regulatory Approval Or License Win
Q1 FY27MEDIUM
Key Risks
1. Pending US FDA revert on CAPA responses for the Jadcherla facility warning lette
MEDIUM2. ₹13 Cr exceptional item due to changes in the Government of India Labour Code
LOWSector-Specific Signals
Formulation Revenue₹177 Cr+50%
API Revenue (Total)₹243 Cr+11%
Biologics Revenue₹25 Cr
Net Debt₹625 Cr
Key Numbers
PAT Growth YoY
+41%
Inflection Up
Revenue YoY
+29%
Stable
Operating Margin
28.0%
+300 bps YoY
PE Ratio
45.0
Current Price
₹407
Dividend Yield
0.12%
Fundamental Score
34/100
Weak
3Y PAT CAGR
+9%
Market Cap
8.5K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Shilpa Medicare Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: Q4 FY26HIGH confidence
What: NorUDCA Sales: Exceeded expectations
“our first NCE molecule... NorUDCA... has exceeded our expectations, and we have had great response from the physicians.”
Regulatory Approval Or License Win
Expected: Q1 FY27MEDIUM confidence
What: EMA Approval: Rotigotine Patch
“we also received approval for our complex transdermal product, Rotigotine, from EMA... expect to launch in Q1 of FY '27.”
Order Book Or Contract Wins
Expected: FY27MEDIUM confidence
What: CDMO Programs: 3 new programs
“within API, let me start with the specialty CDMO where we have added 3 new CDMO programs.”
Interest Cost Reduction Deleveraging
Expected: OngoingLOW confidence
What: Net Debt: ₹625 Cr
“Our interest outgo has seen reduction year-on-year... we also keep repaying of our term loan, and to that extent, debt will keep coming down.”
Formulation Revenue growth of 50% YoY
HIGH confidence
What: Formulation Revenue growth of 50% YoY
“Formulation revenues for the quarter were at INR177 crores, growing at 50% year-on-year... base business reported a robust growth in the revenue of 104% quarter-on-quarter.”
What Are the Key Risks for Shilpa Medicare Ltd?
Earnings deceleration risks from management commentary
Pending US FDA revert on CAPA responses for the Jadcherla facility warning lette
MEDIUMTrigger: The facility is under a warning letter, and the company is awaiting a final decision after submitting remediation responses.
Management view: Completed all CAPA and submitted responses to the US FDA; currently waiting for a revert.
Monitor: regulatory
₹13 Cr exceptional item due to changes in the Government of India Labour Code
LOWTrigger: Implementation of new labor regulations required a one-time provision.
Impact: PAT impact: ₹13 Cr (Pre-tax)
Management view: One-time accounting adjustment made in the current quarter.
Monitor: labor
What Is Shilpa Medicare Ltd's Management Saying?
Key quotes from recent conference calls
“Overall, API business is expected to continue growth in double digit year-on-year. [Previous API Business Growth guidance]”
“Yes. So for FY '26, we should be doing another about INR75 crores to INR100 crores from here on. [Previous Capex FY26 guidance]”
“Our target in the next financial year is to file in all the major RoW markets... planning to start human studies for Europe in next financial year. [Initiative: NorUDCA Global Expansion]”
“after the U.S. FDA inspection, we have finished all the CAPA, and CAPA responses are submitted to U.S. FDA. Now, we are waiting for revert. [Risk (regulatory): MEDIUM]”
What Did Shilpa Medicare Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹411 Cr
YoY +28%QoQ +10.5%
Why: Growth was driven by a 50% year-on-year increase in Formulation revenues and robust traction in the European market for Nilotinib.
Revenue reached a record high, significantly outperforming the 7% YoY growth seen in the previous quarter.
EBITDA
₹115 Cr
YoY +41%Margin 28%
Why: The improvement was primarily driven by increased revenue scale leading to positive operating leverage and a better business mix.
EBITDA margins expanded by 200 basis points YoY due to fixed cost absorption.
PAT
₹55 Cr
YoY +100%QoQ +25%
Why: PAT growth was accelerated by top-line expansion and reduced interest outgo, despite an exceptional labor code provision.
Adjusted PAT excludes a ₹13 Cr exceptional item related to the new Government of India Labour Code.
Other Highlights
• Gross margin for the quarter stood at 68%, compared to 72% in the previous quarter.
• Net debt reduced to ₹625 Cr as of December 31, 2025.
• Formulation base business grew 104% QoQ excluding licensing income.
What Sector Metrics Matter for Shilpa Medicare Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Formulation Revenue
₹177 Cr
YoY +50%QoQ +62%
Why: Driven by market share gains in complex products in the US and EU.
API Revenue (Total)
₹243 Cr
YoY +11%QoQ +18%
Why: Growth supported by increased captive consumption for the formulation business.
Biologics Revenue
₹25 Cr
QoQ 0%
Why: Revenue remained steady as the division focuses on clinical trials for Aflibercept and Albumin.
Net Debt
₹625 Cr
QoQ +10%
Why: Increased slightly from ₹569 Cr in Q2 due to ongoing capex investments.
Annual Licensing Income Guidance
₹150 Cr
Why: Management expects a steady run rate based on the current product pipeline.
New Oncology Products Validated
3 products
Why: Part of the strategy to add 10 new oncology products to the grid.
Q3 Capex Expenditure
₹87 Cr
QoQ -43%
Why: Investment focused on the Albumin facility and API capacity expansion.
Adjusted ROCE
17%
YoY +1350 bpsQoQ 0%
Why: Significant improvement from 3.5% in FY23 due to better asset utilization.
What Is Shilpa Medicare Ltd's Management Guidance?
Forward-looking targets from management for FY27
OPM Guidance
28%
Capex Plan
₹40 Cr
Revenue Outlook
Steady growth in API; higher growth from Biologics and Formulations
Margin Outlook
Expect to continue with the current run rate
Capex Plan
₹40 Cr
New dedicated peptide manufacturing facility
Volume
Volume ramp-up in API expected
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Licensing Income: Lumpy/Variable → ₹150 Cr steady run rate
How Fast Is Shilpa Medicare Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +29% | +4% | Stable |
| PAT (Net Profit) | +41% | +9% | Inflection Up |
| OPM | 28.0% | +300 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.
Other Top Pharma - API & CRAMS Stocks Beating Nifty 500
Frequently Asked Questions: Shilpa Medicare Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Shilpa Medicare Ltd's latest quarterly results?
Shilpa Medicare Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +40.6% (turning around (inflection up))
- Revenue Growth YoY: +28.5%
- Operating Margin: 28.0% (volatile)
Is Shilpa Medicare Ltd's profit growing or declining?
Shilpa Medicare Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +40.6% (latest quarter)
- PAT Growth QoQ: +2.3% (sequential)
- 3-Year PAT CAGR: +8.5%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Shilpa Medicare Ltd's revenue growth trend?
Shilpa Medicare Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +28.5%
- Revenue Growth QoQ: +10.8% (sequential)
- 3-Year Revenue CAGR: +3.9%
How is Shilpa Medicare Ltd's operating margin trending?
Shilpa Medicare Ltd's operating margin is volatile.
- Current OPM: 28.0%
- OPM Change YoY: +3.0% basis points
- OPM Change QoQ: -1.0% basis points
What is Shilpa Medicare Ltd's 3-year profit and revenue CAGR?
Shilpa Medicare Ltd's long-term compounding rates
- 3-Year Profit CAGR: +8.5%
- 3-Year Revenue CAGR: +3.9%
Is Shilpa Medicare Ltd's growth accelerating or decelerating?
Shilpa Medicare Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: -59.4% bps
- Sequential Acceleration: +8.7% bps
What is Shilpa Medicare Ltd's trailing twelve month (TTM) performance?
Shilpa Medicare Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹151 Cr
- TTM PAT Growth: +71.6% YoY
- TTM Revenue: ₹1,000 Cr
- TTM Revenue Growth: +14.7% YoY
- TTM Operating Margin: 27.1%
Is Shilpa Medicare Ltd overvalued or undervalued?
Shilpa Medicare Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 45.0x
- Price-to-Book: 3.3x
What is Shilpa Medicare Ltd's current PE ratio?
Shilpa Medicare Ltd's current PE ratio is 45.0x.
- Current PE: 45.0x
- Market Cap: 8.0K Cr
- Dividend Yield: 0.12%
How does Shilpa Medicare Ltd's valuation compare to its history?
Shilpa Medicare Ltd's current PE is 45.0x.
- Current PE: 45.0x
- Valuation Assessment: Significantly Overvalued
What is Shilpa Medicare Ltd's price-to-book ratio?
Shilpa Medicare Ltd's price-to-book ratio is 3.3x.
- Price-to-Book (P/B): 3.3x
- Book Value per Share: ₹125
- Current Price: ₹407
Is Shilpa Medicare Ltd a fundamentally strong company?
Shilpa Medicare Ltd is rated Weak with a fundamental score of 33.9/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +28.5% (10% weight)
- PAT Growth YoY: +40.6% (10% weight)
- PAT Growth QoQ: +2.3% (10% weight)
- Margins stable (10% weight)
Is Shilpa Medicare Ltd debt free?
Shilpa Medicare Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹593 Cr
What is Shilpa Medicare Ltd's return on equity (ROE) and ROCE?
Shilpa Medicare Ltd's return ratios over recent years
- FY2023: ROCE 1.0%
- FY2024: ROCE 5.0%
- FY2025: ROCE 8.0%
Is Shilpa Medicare Ltd's cash flow positive?
Shilpa Medicare Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹132 Cr
- Free Cash Flow (FCF): ₹-66 Cr
- CFO/PAT Ratio: 169% (strong cash conversion)
What is Shilpa Medicare Ltd's dividend yield?
Shilpa Medicare Ltd's current dividend yield is 0.12%.
- Dividend Yield: 0.12%
- Current Price: ₹407
Who holds Shilpa Medicare Ltd shares — promoters, FII, DII?
Shilpa Medicare Ltd's shareholding pattern (Mar 2026)
- Promoters: 40.1%
- FII (Foreign): 11.1%
- DII (Domestic): 8.6%
- Public: 40.2%
Is promoter holding increasing or decreasing in Shilpa Medicare Ltd?
Shilpa Medicare Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 40.1% (Mar 2026)
- Previous Quarter: 40.1% (Dec 2025)
- Change: 0.00% (stable)
How long has Shilpa Medicare Ltd been outperforming Nifty 500?
Shilpa Medicare Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Shilpa Medicare Ltd a new momentum entry or an established outperformer?
Shilpa Medicare Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Shilpa Medicare Ltd?
Shilpa Medicare Ltd has 6 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Fixed cost absorption as revenue scales across newly invested capacities.
- New Product Or Brand Launch — Strong physician reception and firm order book for the upcoming quarter.
- Regulatory Approval Or License Win — Approval received from EMA; launch preparations are underway with a market partner.
- Order Book Or Contract Wins — Added 3 new CDMO programs in the API segment, including NCEs for global partners.
What are the key risks in Shilpa Medicare Ltd?
Shilpa Medicare Ltd has 2 key risks worth monitoring
- [MEDIUM] Pending US FDA revert on CAPA responses for the Jadcherla facility warning lette — The facility is under a warning letter, and the company is awaiting a final decision after submitting remediation responses.
- [LOW] ₹13 Cr exceptional item due to changes in the Government of India Labour Code — Implementation of new labor regulations required a one-time provision.
What did Shilpa Medicare Ltd's management say in the latest earnings call?
In Q3 FY26, Shilpa Medicare Ltd's management highlighted
- "Overall, API business is expected to continue growth in double digit year-on-year. [Previous API Business Growth guidance]"
- "Yes. So for FY '26, we should be doing another about INR75 crores to INR100 crores from here on. [Previous Capex FY26 guidance]"
- "Our target in the next financial year is to file in all the major RoW markets... planning to start human studies for Europe in next financial year. [..."
What is Shilpa Medicare Ltd's management guidance for growth?
Shilpa Medicare Ltd's management has provided the following forward guidance for FY27
- Revenue outlook: Steady growth in API; higher growth from Biologics and Formulations
- OPM guidance: 28%
- Capex plan: ₹40 Cr for New dedicated peptide manufacturing facility
- Management tone: bullish
- Milestone: [REAFFIRMED] Licensing Income: Lumpy/Variable → ₹150 Cr steady run rate
What sector-specific metrics matter most for Shilpa Medicare Ltd?
Shilpa Medicare Ltd's most important sub-sector-specific KPIs from the latest concall
- Formulation Revenue: ₹177 Cr (YoY +50%) (QoQ +62%) — Driven by market share gains in complex products in the US and EU.
- API Revenue (Total): ₹243 Cr (YoY +11%) (QoQ +18%) — Growth supported by increased captive consumption for the formulation business.
- Biologics Revenue: ₹25 Cr (QoQ 0%) — Revenue remained steady as the division focuses on clinical trials for Aflibercept and Albumin.
- Net Debt: ₹625 Cr (QoQ +10%) — Increased slightly from ₹569 Cr in Q2 due to ongoing capex investments.
- Annual Licensing Income Guidance: ₹150 Cr — Management expects a steady run rate based on the current product pipeline.
- New Oncology Products Validated: 3 products — Part of the strategy to add 10 new oncology products to the grid.
Is Shilpa Medicare Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Shilpa Medicare Ltd may be worth studying
- Earnings growing at +40.6% YoY
- Cash flow is positive — CFO ₹132 Cr
What is the investment thesis for Shilpa Medicare Ltd?
Shilpa Medicare Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +28.5% YoY
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Pending US FDA revert on CAPA responses for the Jadcherla facility warning lette
What is the future outlook for Shilpa Medicare Ltd?
Shilpa Medicare Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Pending US FDA revert on CAPA responses for the Jadcherla facility warning lette
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.