Venus Remedies 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.

Venus Remedies Ltd trades at ₹1,782, in a confirmed uptrend and 64 weeks into that stage. That is +56.3% against its own 200-day average. It sits at 89% of a 52-week range of ₹434 to ₹1,947. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a confirmed uptrend — week 64 of stage 2, confirmed. At ₹1,782 it trades +56.3% versus its 200-day average and sits at 89% of its 52-week range (₹434–₹1,947).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +1,998% while the NIFTY 500 moved +284% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — 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

Venus Remedies Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: EARLY_EXPANSION. Our fortnightly research layers last read it on 19 July 2026.

Our read, 17 May 2026. A debt-free injectable specialist leveraging AMR moat and PLI tailwinds — margin recovery is the thesis, consistency is still unproven.

From the numbers. PE at 16.6x — 68th percentile of 10Y range with median at 14.65x. Cycle history shows peak PE of 57.9x (Mar 2017) and trough of 7.5x (Mar 2022). Current PE is moderately above median but EPS is accelerating sharply (EPS…

From the price. Price stage 2, week 64 — above its 200-day line, relative strength falling.

From the research. A debt-free injectable specialist leveraging AMR moat and PLI tailwinds — margin recovery is the thesis, consistency is still unproven.

🚨 Where they disagree. PE at 16.6x — 68th percentile of 10Y range with median at 14.65x. Cycle history shows peak PE of 57.9x (Mar 2017) and trough of 7.5x (Mar 2022). Current PE is moderately above median but EPS is accelerating sharply (EPS progression: 0.91 → 7.18 → 15.06 → 19.14 over last 4 quarters). FII ownership rising from 1.03% (Sep 2023) to 2.26% (Dec 2025). Cycle position: EARLY_EXPANSION, GOLDEN_SETUP — earnings-driven, not PE-rerating-driven.

What is proven. A debt-free injectable specialist leveraging AMR moat and PLI tailwinds — margin recovery is the thesis, consistency is still unproven.

What is not proven yet. OPM swung from 4% (Sep 2024) to 21% (Dec 2025) — a 17pp range across trailing 8 quarters. Prior low of 1.12% PAT margin (Q1 FY24) suggests this volatility is a recurring characteristic, not a one-off.

🚨 Layer 1 read, 19 July 2026 — DROP. Real margin recovery, but half of it is one-time and the price has already run +220% — the edge is priced in. OPM went from a 4% trough to 24% and EPS from ~1 to 35.5 over the last two years, but much of the PAT jump is non-recurring (zero-interest post-deleveraging + a Rs 33.44 Cr tax clean-up), and the stock now sits at the 97.8th percentile of its own PE range after a +220% run. Margin is still volatile (4-24% across eight quarters), so durable OPM above 14% — not further re-rating — is the unproven catalyst.

What would change Layer 1’s mind. Two-to-three consecutive quarters holding OPM above 14-16% with the AMR/oncology mix (not one-time items) as the driver would prove the margin is structural and re-open an upgrade; conversely OPM reverting toward the 4-8% FY24 band would confirm the recovery was a one-time artifact.

The test written in advance. OPM Volatility — Structural or Cyclical? — OPM Volatility — Structural or Cyclical? Q4 FY26 OPM — must hold above 15% to validate structural recovery by the next result.

The test written in advance. Low ROE/ROCE — Capital Efficiency Concern — Low ROE/ROCE — Capital Efficiency Concern FY26 full-year ROE post Q4 results — target 12%+ for thesis strengthening by the next result.

The test written in advance. German Subsidiary (Venus Pharma GmbH) Negative Net Worth — German Subsidiary (Venus Pharma GmbH) Negative Net Worth GmbH net worth trajectory in annual results; any impairment or recapitalization announcement by the next result.

What the company does. 9M FY26 PAT of ₹55.71 Cr already exceeds full-year FY25 PAT of ₹45 Cr, driven by near-zero interest costs post-deleveraging and OPM recovery from 4% (Sep 2024) to 21% (Dec 2025). 1040+ global marketing authorizations, 135+ patents, and PLI 2.0 participation position the company in the high-barrier critical care injectable niche across 100+ countries. Valuation remains cheap at PE 16x vs sector 33x, but pronounced quarterly margin volatility (OPM ranging 4%–21% across trailing 8 quarters) means the re-rating catalyst is sustained margin stability, not yet delivered.

Lever 5 · Regulatory approval — BUILDING. Interest cost near-zero (₹0.01 Cr in Q2 FY26) after full debt elimination — each rupee of operating profit now flows to PAT with no leakage. What proves it keeps working: Deleveraging — Zero Interest Cost Flowing to PAT. It stops working if Q4 FY26 OPM — must hold above 15% to validate structural recovery.

Lever 8 · Demerger or value unlock — BUILDING. Second PLI disbursement representing 75% of FY24-25 eligible incentive received January 2026, plus ₹11.77 Cr first tranche in Jan 2026 — direct non-operating income tailwind. What proves it keeps working: PLI 2.0 — Production Linked Incentive Disbursements. It stops working if Q4 FY26 OPM — must hold above 15% to validate structural recovery.

Lever 10 · New geographies — BUILDING. 1040+ global MAs, VGFC processing 30,000 orders/month with capacity for 10,000/day — logistic moat enabling scale in 100+ countries. What proves it keeps working: Geographical Expansion — Regulatory Approvals and VGFC Logistics Unlock. It stops working if Q4 FY26 OPM — must hold above 15% to validate structural recovery.

Lever 3 · Management change — BUILDING. Management shifting from commoditized antibiotics to AMR (Meropenem, Ceftazidime+Avibactam) and oncology (Carboplatin, Cyclophosphamide) — both carry structurally higher margins. What proves it keeps working: AMR + Oncology Mix Shift — Higher-Margin Specialty Portfolio. It stops working if Q4 FY26 OPM — must hold above 15% to validate structural recovery.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26. 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.

Venus Remedies Ltd reported ₹179 Cr of revenue in the Jun 26 quarter, +30.7% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 6.6% a year. The last full year, FY26, came in at ₹770 Cr. The last four reported quarters add to ₹811 Cr.

Why this happened. The October 2025 inauguration of the Venus Global Fulfillment Center (VGFC) in Mohali (132,000 sq ft, capacity for 5,000+ pallets and 50M+ product units) adds a new logistics backbone to the global distribution effort. Regulatory approval pipeline is active: Indonesia approval for Ceftazidime+Avibactam (Jan 2026), Argentina for Ceftriaxone (May 2026) taking Ceftriaxone global MAs to 39. Venus Pharma GmbH (Germany) provides EU distribution with 138+ MAs across 20 European countries. The Cipla AMR drug final milestone payment of ₹11 Cr (Dec 2025) validates VMRC's research commercialization capability.

FY26 revenue came in at ₹770 Cr (+20.3% on the year), capping 10 years at 6.6% compound. The latest quarter (Jun 26) printed ₹179 Cr, +30.7% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +19.7% growth against the decade's 6.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +19.4% over the last 4 quarters against +14.8%/yr over the last 8 — accelerating; TTM profit +112.7% vs +100.9%/yr — accelerating.

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.

Venus Remedies Ltd's operating margin is 19.0% in the Jun 26 quarter, +8.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 26.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 19.0%, +8.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0%–26.0%.

Why the margin moved: operating margin went +7.9 pp year on year while gross margin went +6.9 pp — the gain came mostly from the gross line: input costs and pricing.

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

Venus Remedies Ltd earned ₹23.0 Cr of net profit in the Jun 26 quarter, +130.0% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹103 Cr. The 10-year compound rate is 48.3%. That is 12.8% of the quarter's revenue. The same quarter a year earlier earned ₹10.0 Cr.

Jun 26 profit was ₹23.0 Cr, +130.0% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹103 Cr (+128.9%), and the 10-year compound rate is 48.3%.

Why profit moved: revenue contributed +30.7% and the margin +8.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +172.2% vs revenue +19.7%. 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.

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 159% of Venus Remedies Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹156 Cr of operating cash against ₹103 Cr of profit. After ₹54.0 Cr of capital spending, ₹102 Cr was left as free cash.

FY26: operating cash of ₹156 Cr against reported profit of ₹103 Cr, leaving free cash of ₹102 Cr after ₹54.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 159% 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 159%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 1.5× 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).

Venus Remedies Ltd's cash conversion cycle runs 64 days in FY26, down from 74 days in FY21. Capital spending ran ₹116 Cr over the last 3 years. At FY26 sales of ₹770 Cr each day of that cycle holds about ₹2.1 Cr, so roughly ₹135 Cr sits inside the business at any moment.

FY26: debtors at 49 days, inventory at 122 days — roughly 4.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 64 days, tighter than FY21's 74.

The full loop: cash goes out to suppliers and production on day 0; stock waits 122 days to sell; customers pay about 49 days after that; and suppliers themselves are paid at 107 days — netting out to the 64-day cycle.

In money terms: at FY26 sales of ₹770 Cr, each day of the cycle holds about ₹2.1 Cr — so the 64-day loop keeps roughly ₹135 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹116 Cr over the last 3 fiscal years against ₹75.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹51.0 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.

Venus Remedies Ltd earns a ROCE of 22% in FY26. That is up from a trough of 1% in FY18. Return on invested capital clears the cost of that capital by +6.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 13.4% net margin on 0.90× asset turns.

FY26 ROCE is 22%, recovered from a FY18 trough of 1% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 13.4% net margin × 0.90× asset turns × 1.29× balance-sheet leverage ≈ 15.6% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 18.6% − 12.0% = a +6.6 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. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

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.

Venus Remedies Ltd carries total debt of ₹12.0 Cr against shareholder equity of ₹664 Cr as of Jun 26, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.10 in FY22 to 0.02 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹12.0 Cr against shareholder equity of ₹664 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.10 (FY22) to 0.02 (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.

Foreign institutions added 1.9 points of Venus Remedies Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 2.9% of the company. Domestic institutions moved +0.9 points over the same window, to 0.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. Venus is one of India's largest meropenem manufacturers and holds WHO Prequalification for Meropenem. Mission 2030 roadmap (April 2026) signals a deliberate pivot toward research-led, higher-margin product categories including AMR and oncology injectables. New approvals in H2 FY26 are concentrated in these segments. The Cipla partnership for the MDR-infection AMR drug (sold in 2019, final payment Dec 2025) validates the R&D commercialization pipeline. This is a long-fuse driver: mix shift takes multiple years but is the key to structurally sustaining OPM above 15%.

The register over the last two years — Foreign institutions: +1.9 points over 8 quarters to 2.9%; Domestic institutions: +0.9 points over 8 quarters to 0.9%; Promoters: +0.0 points over 8 quarters to 41.8%.

Why the register moved: foreign institutions drove it (+1.9 points), alongside domestic institutions (+0.9 points) — steady accumulation by institutions reading the same numbers this page reads.

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.

Venus Remedies 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.

Why this happened. Venus Remedies eliminated ₹38.68 Cr of long-term debt by FY25, achieving a net D/E of -0.37 (net cash). The interest burden that historically depressed PAT margins is gone. This is the primary structural change explaining the 9M FY26 PAT of ₹55.71 Cr exceeding the FY25 full-year PAT of ₹45 Cr. This driver is now fully realized — the incremental benefit was large in FY26 but the marginal contribution in FY27 will be smaller unless operating leverage compresses it further.

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.

Venus Remedies Ltd trades at 20.5× P/E, at the pricey end of its own range (93rd percentile). Its long-run median P/E is 14.7×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Why this happened. Venus Remedies received its second PLI Scheme for Pharmaceuticals disbursement (75% of FY24-25 eligible amount) in January 2026, following a first disbursement. As one of the select PLI 2.0 approved companies, the scheme supports capacity scaling and technology adoption. The PLI incentives are expected to continue for the life of the scheme, providing a recurring income supplement to operating earnings.

Today's P/E of 20.5× is at the pricey end of its own range (93rd percentile), against a long-run median of 14.7× measured over 10.5 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 +126.8% against a +276.2% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +28.6%/yr price move, ~+22.1%/yr came from earnings growth and ~+6.5 pp from the multiple (expanding); over 10y, of the +35.4%/yr price move, ~+34.7%/yr came from earnings growth and ~+0.7 pp from the multiple (roughly flat). 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.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 20 July 2026, Venus Remedies Ltd was priced for profit growth of about 12.8% a year. Profit itself has compounded 48.3% a year over the past 10 years. The market pays that at 20.5× P/E, the 93rd percentile of its own 11-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is below what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 20 July 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

Stage: Consistent 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).

Venus Remedies Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 17.4% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

79.1/100 — rank 1 of 1 in Pharmaceuticals - I V Fluids · 97% evidence confidence

Venus Remedies Ltd scores 79.1 out of 100 against the 1 companies it is compared with in Pharmaceuticals - I V Fluids, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 34.5 + 20.1 + 12 + 12.5 = 79.1. 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.

Frequently asked questions