Shilpa Medicare Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Shilpa Medicare Ltd trades at ₹961, in a confirmed uptrend and 21 weeks into that stage. That is +72.6% against its own 200-day average. It sits at 100% of a 52-week range of ₹267 to ₹964. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 35 straight weeks.

Today the stock is in a confirmed uptrend — week 21 of stage 2, confirmed. At ₹961 it trades +72.6% versus its 200-day average and sits at 100% of its 52-week range (₹267–₹964).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +337% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 35 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Shilpa Medicare Ltd's story is not scored yet against the markers our research file set on 31 May 2026. Where it sits in its own cycle: COMPRESSION_WITH_EPS_RECOVERY. Still open: FDA observations submitted with compliance response filed; re-audit pending; until cleared, Uniza CDMO (PDUFA June 2026) and US pipeline launches from this facility remain gated.

Our read, 31 May 2026. FY26 delivered the strongest earnings in company history — PAT 212% YoY from a near-zero base, EBITDA margin at 29%, ROCE at 17.4% — with four revenue engines (API, Formulations, Biologics/CDMO, Licensing) all growing; the Raichur FDA re-audit and Uniza PDUFA clearance are the gating conditions on US/CDMO optionality.

From the numbers. PE contracted from peak of 177x (Jun 2024) to 41.8x (current) — a 76% decline from peak, driven by EPS recovery from near-zero base. FY23 PAT was a loss; FY24 ₹32 Cr; FY25 ₹78 Cr; FY26 ₹243 Cr — EPS growing 12.44 (FY26)…

From the price. Price stage 2, week 21 — above its 200-day line, relative strength rising.

From the research. FY26 delivered the strongest earnings in company history — PAT 212% YoY from a near-zero base, EBITDA margin at 29%, ROCE at 17.4% — with four revenue engines (API, Formulations, Biologics/CDMO, Licensing) all growing…

🚨 Where they disagree. PE contracted from peak of 177x (Jun 2024) to 41.8x (current) — a 76% decline from peak, driven by EPS recovery from near-zero base. FY23 PAT was a loss; FY24 ₹32 Cr; FY25 ₹78 Cr; FY26 ₹243 Cr — EPS growing 12.44 (FY26) from 1.84 (FY24). At 52nd percentile, the PE is near long-term median (~40x) for a company with genuine earnings recovery. The multiple is still contracting YoY (-56% smoothed YoY) while EPS is expanding strongly — a classic early-recovery setup. DII buying validates domestic institutional interest. At PE 41.8x on FY26 EPS of ₹12.44 = P/E is clean and not elevated on a trailing basis.

What is proven. FY26 delivered the strongest earnings in company history — PAT 212% YoY from a near-zero base, EBITDA margin at 29%, ROCE at 17.4% — with four revenue engines (API, Formulations, Biologics/CDMO, Licensing) all growing; the Raichur FDA re-audit and Uniza PDUFA clearance are the gating conditions on US/CDMO optionality.

What is not proven yet. FDA observations submitted with compliance response filed; re-audit pending; until cleared, Uniza CDMO (PDUFA June 2026) and US pipeline launches from this facility remain gated.

The test written in advance. Raichur FDA Re-Audit (Unresolved — Binary US Gate) — Raichur FDA Re-Audit (Unresolved — Binary US Gate) FDA clearance announcement on Raichur facility re-audit; Uniza commercial supplies commencement in FY27 by the next result.

The test written in advance. Recurring Management Timeline Slippage — Four New Instances — Recurring Management Timeline Slippage — Four New Instances by the next result.

The test written in advance. Licensing Revenue Lumpiness + Nilotinib Competition FY28 — Licensing Revenue Lumpiness + Nilotinib Competition FY28 Quarterly licensing income vs ₹200 Cr annual pace; Nilotinib EU volume trend in Q2 FY27 by the next result.

Lever 1 · Operating leverage — BUILDING. EBITDA margin at 28-29% for five consecutive quarters vs 24-26% year-ago; ROCE recovered from 4% (FY23) to 17.4% (FY26) as fixed costs absorb across a larger revenue base. What proves it keeps working: Operating Leverage Inflection. It stops working if FDA clearance announcement on Raichur facility re-audit; Uniza commercial supplies commencement in FY27.

Lever 2 · Value-added mix — BUILDING. Formulations ₹618 Cr (+30% YoY) in FY26; EU formulations surged over 100% to ₹200+ Cr; Nor-UDCA shows steep QoQ growth; Rotigotine EU launch FY27. What proves it keeps working: Formulations Revenue Mix Shift (EU + India new launches). It stops working if FDA clearance announcement on Raichur facility re-audit; Uniza commercial supplies commencement in FY27.

Lever 3 · Management change — BUILDING. Biologics ₹150 Cr (+100% YoY) in FY26; Aflibercept India/Russia FY27 launch with major licensing income; ADC Phase 1 FY27; Albumin IMPD Europe H1 FY27. What proves it keeps working: Biologics/CDMO Monetization (Aflibercept + ADC + Albumin Pipeline). It stops working if FDA clearance announcement on Raichur facility re-audit; Uniza commercial supplies commencement in FY27.

Lever 4 · Paying down debt — BUILDING. Net debt ₹613 Cr (FY26) at 1.38x EBITDA; interest expense trajectory down from ₹26 Cr (Sep 2024) to ₹14 Cr (Mar 2026); FY27 capex self-funded. What proves it keeps working: Interest Cost Reduction. It stops working if FDA clearance announcement on Raichur facility re-audit; Uniza commercial supplies commencement in FY27.

Sources: our stock research file (31 May 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Shilpa Medicare Ltd reported ₹466 Cr of revenue in the Jun 26 quarter, +45.2% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.9% a year. The last full year, FY26, came in at ₹1,535 Cr. The last four reported quarters add to ₹1,683 Cr.

FY26 revenue came in at ₹1,535 Cr (+19.8% on the year), capping 10 years at 7.9% compound. The latest quarter (Jun 26) printed ₹466 Cr, +45.2% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +28.3% growth against the decade's 7.9% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +28.0% over the last 4 quarters against +19.2%/yr over the last 8 — accelerating; TTM profit +166.1% vs +157.3%/yr — accelerating.

FY26-Q4. revenue ₹437 Cr and profit ₹108 Cr as reported.

FY27-Q1. revenue ₹466 Cr and profit ₹101 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Shilpa Medicare Ltd's operating margin is 29.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 9.0% to 28.0%. The current quarter is running above every full year in that window.

Why this happened. FY26 full-year EBITDA ₹445 Cr grew 30% YoY on revenue growth of 18% — margin expanding while revenue scales. Q4 FY26 showed EBITDA ₹121 Cr (+40% YoY) on revenue ₹437 Cr (+30% YoY). The operating leverage is structural: capacity built over six years of heavy capex is now generating returns. Management explicitly described the phase as 'execution, scaling, and getting maximum ROCE from all investments.' ROCE moved from 4% (FY23) to 17.4% (FY26) with the trajectory steepening each year as formulations/biologics revenue scales.

The latest quarter's operating margin is 29.0%, +1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0%–28.0%, and FY26's 28.0% is the top of that band — a record year.

Why the margin moved: operating margin went +1.0 pp year on year while gross margin went −4.3 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹437 Cr and profit ₹108 Cr as reported.

FY27-Q1. revenue ₹466 Cr and profit ₹101 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Shilpa Medicare Ltd earned ₹101 Cr of net profit in the Jun 26 quarter, +114.9% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹243 Cr. The 10-year compound rate is 9.4%. That is 21.7% of the quarter's revenue. The same quarter a year earlier earned ₹47.0 Cr.

Jun 26 profit was ₹101 Cr, +114.9% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹243 Cr (+211.5%), and the 10-year compound rate is 9.4%.

Why profit moved: revenue contributed +45.2% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +230.0% vs revenue +28.3%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹437 Cr and profit ₹108 Cr as reported.

FY27-Q1. revenue ₹466 Cr and profit ₹101 Cr as reported.

Why-sources: our stock research file (31 May 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 173% of Shilpa Medicare Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹342 Cr of operating cash against ₹243 Cr of profit. After ₹357 Cr of capital spending, ₹−15.0 Cr was left as free cash.

FY26: operating cash of ₹342 Cr against reported profit of ₹243 Cr, leaving free cash of ₹−15.0 Cr after ₹357 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 173% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 173%: the cash cycle tightened 124 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Shilpa Medicare Ltd's cash conversion cycle runs 301 days in FY26, down from 425 days in FY21. Capital spending ran ₹795 Cr over the last 3 years. At FY26 sales of ₹1,535 Cr each day of that cycle holds about ₹4.2 Cr, so roughly ₹1,266 Cr sits inside the business at any moment.

FY26: debtors at 123 days, inventory at 291 days — roughly 9.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 301 days, tighter than FY21's 425.

The full loop: cash goes out to suppliers and production on day 0; stock waits 291 days to sell; customers pay about 123 days after that; and suppliers themselves are paid at 113 days — netting out to the 301-day cycle.

In money terms: at FY26 sales of ₹1,535 Cr, each day of the cycle holds about ₹4.2 Cr — so the 301-day loop keeps roughly ₹1,266 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹795 Cr over the last 3 fiscal years against ₹341 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹884 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Shilpa Medicare Ltd earns a ROCE of 11% in FY26. That is up from a trough of 1% in FY23. Return on invested capital clears the cost of that capital by −2.5 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 15.8% net margin on 0.41× asset turns.

FY26 ROCE is 11%, recovered from a FY23 trough of 1% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 15.8% net margin × 0.41× asset turns × 1.43× balance-sheet leverage ≈ 9.3% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 9.5% − 12.0% = a −2.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Shilpa Medicare Ltd carries total debt of ₹660 Cr against shareholder equity of ₹2,591 Cr as of Mar 26, a debt-to-equity of 0.25 — effectively unlevered. On the annual view that ratio went from 0.38 in FY22 to 0.25 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Why this happened. Net debt reduced from ₹905 Cr (Mar 2024) to ₹558 Cr (Mar 2025), then crept up to ₹613 Cr (FY26) as Q4 capex was deployed. Interest expense fell from ₹26 Cr (Sep 2024) to ₹14 Cr (Mar 2026), reducing PAT drag. Management has guided FY27 capex at similar level to FY26, self-funded via internal accruals. At ₹445 Cr EBITDA, net debt-to-EBITDA is 1.38x — manageable for the current phase.

Mar 26: total debt of ₹660 Cr against shareholder equity of ₹2,591 Cr — a debt-to-equity of 0.25. On the annual view, debt-to-equity went from 0.38 (FY22) to 0.25 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 4.3 points of Shilpa Medicare Ltd over 8 quarters, the biggest move on the register. That takes promoters to 40.1% of the company. Foreign institutions moved +2.3 points over the same window, to 11.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. Biologics segment doubled to ₹150 Cr in FY26. Aflibercept (complex ophthalmic biosimilar) is on track for India/Russia launch FY27 — management guides major licensing income in FY27 upon Year 1 completion, at a magnitude higher than the Adalimumab precedent. Five active CDMO programs are ongoing. The ADC biosimilar development was completed Q4 FY26 (Phase 1 FY27). Recombinant human albumin has Phase 3 approval in India and Europe — IMPD submission planned H1 FY27. Uniza Therapeutics PDUFA date June 29, 2026 is the nearest US binary event (commercial revenue gated on FDA warning letter clearance at Raichur).

The register over the last two years — Promoters: −4.3 points over 8 quarters to 40.1%; Foreign institutions: +2.3 points over 8 quarters to 11.4%; Domestic institutions: +0.4 points over 8 quarters to 8.1%.

🚨 Why the register moved: promoters drove it (−4.3 points), absorbed on the other side by foreign institutions (+2.3 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Shilpa Medicare Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Shilpa Medicare Ltd trades at 66.1× P/E, at the pricey end of its own range (75th percentile). Its long-run median P/E is 42.4×, measured across 10.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 66.1× is at the pricey end of its own range (75th percentile), against a long-run median of 42.4× measured over 10.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +211.0% against a +132.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +25.8%/yr price move, ~+30.6%/yr came from earnings growth and ~−4.8 pp from the multiple (compressing); over 10y, of the +13.5%/yr price move, ~+7.8%/yr came from earnings growth and ~+5.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Shilpa Medicare Ltd reads as mixed on its fundamental arc. Mixed — the growth curves are steadily positive, but ROCE at 11.0% is below the 15% bar this page requires to call it Consistent. The read is built from 12 quarters across 4 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

63.1/100 — rank 7 of 24 in Pharma - API & CRAMS · 100% evidence confidence

Shilpa Medicare Ltd scores 63.1 out of 100 against the 24 companies it is compared with in Pharma - API & CRAMS, ranking 7. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 27.6 + 10.3 + 5.6 + 19.6 = 63.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Shilpa Medicare Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Rotigotine Europe launch timing is no longer consistent · 5 August 2026. Management stated in both February and May 2026 that Rotigotine was expected to launch in Europe during FY27, including an expected Q1 FY27 launch. In August 2026, management cited a FY28 launch after discussing the US filing and did not clarify whether FY28 referred only to the US or represented a delay to the previously stated European launch timeline.

EBITDA margin outlook has shifted from a 35% ambition to roughly 30% · 5 August 2026. In May 2026, management described 35% EBITDA margins as an objective it was working toward, while acknowledging that achievement would not be immediate. In August 2026, management instead said it expected margins to remain in a similar range to the current approximately 30% level, without explaining whether the 35% objective had been deferred or abandoned.

SMLTOP09 Clinical Trial Timeline Delayed · 22 May 2026. In the Feb 2026 conference call, management expected to complete human clinical studies for SMLTOP09 in FY27. However, during the May 2026 call, they revealed that these studies had not yet commenced due to additional regulatory requests for pre-clinical data, rescheduling the start of global studies to FY27.

Aflibercept European Phase III Clinical Study Abandoned · 22 May 2026. During the Nov 2025 conference call, management indicated plans to enter Phase III trials for Aflibercept in Europe and the US in FY27. In the May 2026 call, they dramatically shifted this strategy, confirming there are currently no plans for European trials due to high costs and competitive disadvantages unless a partner finances the study.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions