Wanbury 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.

Wanbury Ltd trades at ₹240, in a confirmed uptrend and 21 weeks into that stage. That is −8.8% against its own 200-day average. It sits at 40% of a 52-week range of ₹177 to ₹333. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (6 weeks and counting).

Today the stock is in a confirmed uptrend — week 21 of stage 2, confirmed. At ₹240 it trades −8.8% versus its 200-day average and sits at 40% of its 52-week range (₹177–₹333).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +494% while the NIFTY 500 moved +273% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (6 weeks and counting; last ahead the week of 2026-07-31) — 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

Wanbury 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: Not stated in the research file. Still open: First commercial shipment dispatched Q3 FY26 but management's 100 Cr target for FY27 implies an 8-10x ramp from one batch. European customer off-take timeline unconfirmed.

Our read, 31 May 2026. A legacy API manufacturer turning a financial corner through debt halving and Tanaku facility ramp-up — but the transition from generic volume to specialty margin is unproven at scale.

What is proven. A legacy API manufacturer turning a financial corner through debt halving and Tanaku facility ramp-up — but the transition from generic volume to specialty margin is unproven at scale.

What is not proven yet. First commercial shipment dispatched Q3 FY26 but management's 100 Cr target for FY27 implies an 8-10x ramp from one batch. European customer off-take timeline unconfirmed.

🚨 Layer 1 read, 22 August 2026 — DROP. The turnaround was cheaper debt and a tax break, not a better business — and both ended in the same quarter. Wanbury profit recovery was built on two things: interest costs cut from 22.5% to 12.5% after refinancing, and a tax bill of almost nothing because of old accumulated losses. In the June 2026 quarter both stopped — interest actually rose slightly and the tax rate went from under 1% to 29% — while the profit from making and selling medicines fell by a third and sales stood still at about Rs 165 crore, where they have been for two years. The Timeline said in its own words that the case breaks if the operating margin cannot stay above 14%; it came in at 9.8%. The share looks cheap at 15.6 times earnings, but that is the price of last year earnings, which have just gone.

What would change Layer 1’s mind. Two consecutive quarters back at or above 14% operating margin WITH revenue finally breaking out of the Rs 160-166 Cr band, driven by Tanaku volumes rather than by another tax or interest item — that would say the June quarter was a stumble and not the end of the story. A single recovery quarter would not do it, because I now know the previous strong quarter (Mar 2026) was itself tax-flattered. I would also revisit immediately if this company starts holding earnings calls, since the entire…

The test written in advance. Tanaku Revenue Ramp Slippage — Tanaku Revenue Ramp Slippage Tanaku revenue contribution in Q1 FY27 concall; second customer off-take announcement by the next result.

The test written in advance. Finance Cost Floor — PAT Growth Decelerates — Finance Cost Floor — PAT Growth Decelerates Q1 FY27 PAT YoY growth vs Q1 FY26 PAT of 13 Cr; operating profit growth rate decoupled from PAT by the next result.

The test written in advance. Generic API Pricing Pressure — Generic API Pricing Pressure API realization per kg for Metformin and Sertraline in Q1/Q2 FY27 by the next result.

What the company does. Debt reduced ~75% from peak ~700 Cr; borrowing cost down from 22.5% to 12.5% — finance cost relief is the dominant driver of PAT recovery, not operational margin expansion. Tanaku facility (Andhra Pradesh) achieved first commercial anaesthetic API shipment to Europe in Q3 FY26; management targets ~100 Cr incremental revenue by FY27 from 4 new molecules/year. OPM expanded from 8% (FY24) to 13% (FY25) to 16% (9M FY26) — margin recovery tied to both mix improvement and operating leverage on existing 386 KL reactor capacity.

Lever 5 · Regulatory approval — BUILDING. Borrowing cost cut from 22.5% to 12.5% from March 2025 — finance cost fell from 10 Cr/quarter (Q3 FY25) to 7 Cr/quarter (Q3 FY26). ~75% debt reduction from 700 Cr peak. What proves it keeps working: Debt Cost Relief (NCD Refinancing). It stops working if Tanaku revenue contribution in Q1 FY27 concall; second customer off-take announcement.

Lever 1 · Operating leverage — BUILDING. Tanaku facility first commercial anaesthetic API shipment to Europe dispatched Q3 FY26; targets ~100 Cr incremental revenue, 4 new molecules/year from FY27. What proves it keeps working: Tanaku Facility — Specialty API Ramp. It stops working if Tanaku revenue contribution in Q1 FY27 concall; second customer off-take announcement.

Lever 2 · Value-added mix — BUILDING. OPM 16% in Q3 FY26 vs 11% in Q3 FY25 (+500 bps YoY); driven by better yields, solvent recovery systems, and higher-margin SKU mix. What proves it keeps working: OPM Expansion via Yield and Solvent Recovery. It stops working if Tanaku revenue contribution in Q1 FY27 concall; second customer off-take announcement.

Lever 9 · Buyback — BUILDING. 6th USFDA inspection at Patalganga passed with zero 483 observations; ANVISA Brazil GMP cert for Tanaku; Korea MFDS Patalganga clearance April 2026. Three major regulators clean simultaneously. What proves it keeps working: Regulated Market Expansion (USFDA / ANVISA / MFDS-Korea). It stops working if Tanaku revenue contribution in Q1 FY27 concall; second customer off-take announcement.

Sources: our stock research file (31 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.

Wanbury Ltd reported ₹166 Cr of revenue in the Jun 26 quarter, +1.5% year on year. Over 10 years it has compounded at 4.5% a year. The last full year, FY26, came in at ₹650 Cr. The last four reported quarters add to ₹653 Cr.

Why this happened. The formulations business — representing 12% of FY25 revenue — turned EBITDA positive in 9M FY26. Strategy involves transitioning from acute to specialty/chronic segments and geographical expansion into new markets. Field force build-out is targeted for scale-up in FY27. The risk remains that this is a small segment (70 Cr FY25) and recurring profitability is not yet demonstrated across a full year.

FY26 revenue came in at ₹650 Cr (+8.3% on the year), capping 10 years at 4.5% compound. The latest quarter (Jun 26) printed ₹166 Cr, +1.5% year on year.

Pace check: the last four quarters averaged +4.5% growth against the decade's 4.5% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +3.6% over the last 4 quarters against +7.9%/yr over the last 8 — rolling over; TTM profit +30.0% vs +44.5%/yr — rolling over.

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.

Wanbury Ltd's operating margin is 9.8% in the Jun 26 quarter, −5.2 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 −18.0% to 16.0%. The current quarter sits inside that band.

Why this happened. Tanaku facility in Andhra Pradesh cleared ANVISA (Brazil) GMP audit with zero observations. First commercial shipment of high-potent anaesthetic API to a European customer dispatched in Q3 FY26. Management targets ~100 Cr revenue contribution and full commercial production by FY27. The product portfolio covers antitussive, anticoagulant, anaesthetic, and antidepressant molecules — regulated-market focused. Revenue is nascent and the milestone tracking gate is whether Tanaku exceeds 50 Cr revenue in FY27.

The latest quarter's operating margin is 9.8%, −5.2 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −18.0%–16.0%, and FY26's 16.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −5.2 pp year on year while gross margin went −1.5 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

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.

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

Wanbury Ltd earned ₹3.2 Cr of net profit in the Jun 26 quarter, −76.0% year on year. Full-year FY26 profit was ₹66.0 Cr. That is 2.0% of the quarter's revenue. The same quarter a year earlier earned ₹13.5 Cr.

Jun 26 profit was ₹3.2 Cr, −76.0% year on year. On the full year, FY26 printed ₹66.0 Cr (+112.9%).

🚨 Why profit moved: revenue contributed +1.5% and the margin −5.2 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +303.0% vs revenue +4.5%. 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 50% of Wanbury Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹32.0 Cr of operating cash against ₹66.0 Cr of profit. After ₹62.0 Cr of capital spending, ₹−30.0 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹32.0 Cr against reported profit of ₹66.0 Cr, leaving free cash of ₹−30.0 Cr after ₹62.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 50% 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 50%: the cash cycle stretched 153 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 153 days — the next section's job is to find where the cash is stuck.

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).

Wanbury Ltd's cash conversion cycle runs 6 days in FY26, up from −147 days in FY21. Capital spending ran ₹125 Cr over the last 3 years. At FY26 sales of ₹650 Cr each day of that cycle holds about ₹1.8 Cr, so roughly ₹11.0 Cr sits inside the business at any moment.

FY26: debtors at 80 days, inventory at 67 days — roughly 2.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 6 days, looser than FY21's −147.

The full loop: cash goes out to suppliers and production on day 0; stock waits 67 days to sell; customers pay about 80 days after that; and suppliers themselves are paid at 142 days — netting out to the 6-day cycle.

In money terms: at FY26 sales of ₹650 Cr, each day of the cycle holds about ₹1.8 Cr — so the 6-day loop keeps roughly ₹11.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹125 Cr over the last 3 fiscal years against ₹40.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹25.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

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.⚠ unverified

Wanbury Ltd earns a ROCE of 31% in FY26. That is up from a trough of −1% in FY18. Return on invested capital clears the cost of that capital by +16.3 percentage points, so growth here adds value rather than only size. The wiring behind it is 10.2% net margin on 1.25× asset turns.

FY26 ROCE is 31%, 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): 10.2% net margin × 1.25× asset turns × 3.57× balance-sheet leverage ≈ 45.5% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 28.3% − 12.0% = a +16.3 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.⚠ unverified

Wanbury Ltd carries total debt of ₹224 Cr against shareholder equity of ₹144 Cr as of Mar 26, a debt-to-equity of 1.56. On the annual view that ratio went from 27.00 in FY22 to 1.56 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹224 Cr against shareholder equity of ₹144 Cr — a debt-to-equity of 1.56. On the annual view, debt-to-equity went from 27.00 (FY22) to 1.56 (FY26). Read the returns on this page with that leverage in mind.

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 added 3.2 points of Wanbury Ltd over 8 quarters, the biggest move on the register. That takes promoters to 43.0% of the company. Foreign institutions moved +0.7 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. Wanbury's two USFDA-approved API facilities (Patalganga + Tanaku) have now added ANVISA Brazil and Korea MFDS certifications. Sertraline Form II and Metformin DC Grade received ANVISA approval in March 2026 — these are existing high-volume molecules gaining new market access. The regulatory track record de-risks the Tanaku ramp and supports European customer acquisition.

The register over the last two years — Promoters: +3.2 points over 8 quarters to 43.0%; Foreign institutions: +0.7 points over 8 quarters to 0.9%; Domestic institutions: +0.1 points over 8 quarters to 0.1%.

Why the register moved: promoters drove it (+3.2 points), alongside foreign institutions (+0.7 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.

Wanbury 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. The primary driver of PAT recovery in FY26 is financial engineering rather than new revenue. Debt reduced ~75% from peak ~700 Cr and refinanced NCDs at 12.5% vs prior 22.5%. Interest expense savings of ~3 Cr per quarter translate directly to PAT. This driver is mature — further step-down in finance cost is limited. The next leg of PAT growth must come from operations.

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.

Wanbury Ltd trades at 14.1× P/E, near the bottom of its own range — cheaper only 28% of the time. Its long-run median P/E is 20.9×, 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.

Today's P/E of 14.1× is near the bottom of its own range — cheaper only 28% of the time, against a long-run median of 20.9× 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.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +103.1% against a −8.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 10y, of the +17.7%/yr price move, ~−5.9%/yr came from earnings growth and ~+23.6 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 low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

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.

Solved at its 27 August 2026 price, Wanbury Ltd was paying for profit growth of about 7.7% a year. Today the market pays 14.1× P/E, the 28th percentile of its own 11-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is the whole of what a buyer is backing.

How to hold this number: it is a reading of one day's price, taken on 27 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. 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.

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).

Wanbury Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +1482.8% at its peak to +30.0% but is still expanding, ROCE holding at 31.0%. The read is built from 10 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

63.5/100 — rank 2 of 14 in Pharma - API · 81% evidence confidence

Wanbury Ltd scores 63.5 out of 100 against the 14 companies it is compared with in Pharma - API, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 19.9 + 18.6 + 14.3 + 10.7 = 63.5. 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