Lactose (India) - Lactose (India)

📊 BSE: 524202 🏢 Pharmaceuticals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single Pharmaceutical Business segment. Revenue grew 2.2% YoY from INR 113.89 Cr in FY24 to INR 116.40 Cr in FY25, driven by direct sales and increased capacity utilization.

Geographic Revenue Split

Not disclosed in available documents, though the company is targeting expansion in South Asia and Africa.

Profitability Margins

Gross margins were impacted by rising costs; Operating Profit Margin declined from 16.68% to 14.57% YoY. Net Profit Margin fell from 5.74% to 4.39% YoY due to higher interest and depreciation costs.

EBITDA Margin

EBITDA margin stood at 14.9% in FY25. Core profitability was affected by sub-scale business model pressures and increased operating expenses.

Capital Expenditure

The company is undertaking significant expansion, doubling Lactose capacity to 20,000 MTPA and increasing Lactulose capacity to 3,500-5,000 MTPA. Specific historical capex value in INR Cr is not disclosed.

Credit Rating & Borrowing

The company maintains an above-average financial risk profile with an ROCE over 12%. Current borrowings increased 118% YoY to INR 30.31 Cr in FY25 to fund working capital and expansion.

⚙️ Operational Drivers

Raw Materials

Raw materials include inputs for Lactose and Lactulose manufacturing (typically whey/permeate), representing a significant but unspecified percentage of total costs.

Import Sources

Not specifically disclosed, though the company identifies the setup of the raw material supply chain as a key concern due to increased sales volume.

Key Suppliers

Not specifically named, but the company has a strategic association with the Kerry Group for marketing and direct sales.

Capacity Expansion

Current installed capacity includes 10,000 MTPA for Lactose and 2,400 MTPA for Lactulose. Expansion plans target 20,000 MTPA for Lactose and 3,500-5,000 MTPA for Lactulose.

Raw Material Costs

Raw material costs are a major concern due to supply chain complexities; the company is focusing on optimum utilization of its API plant to manage these costs.

Manufacturing Efficiency

Capacity utilization is increasing; the company is focusing on particle engineering for Lactose (flowability/compressibility) and process control for Lactulose API.

Logistics & Distribution

Distribution is handled through direct sales and global expos; costs as a specific percentage of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by doubling Lactose capacity to 20,000 MTPA, expanding Lactulose to 5,000 MTPA, increasing exports to South Asia and Africa, and leveraging the Kerry Group partnership for direct sales.

Products & Services

Lactose Monohydrate (milled and sieved, spray-dried, anhydrous, inhalation grades), Lactulose API, and Pharmaceutical Tablets (20 lakh/day capacity).

Brand Portfolio

Lactose (India) Limited.

New Products/Services

New specialized grades of lactose (spray-dried, anhydrous, inhalation) and high-purity lactulose for prebiotic applications are expected to boost export revenue.

Market Expansion

Targeting the Asia-Pacific pharmaceutical industry (7.5% CAGR in India) and penetrating markets in South Asia and Africa.

Market Share & Ranking

Holds a 40% share of India's lactose market and operates Asia's only lactulose plant.

Strategic Alliances

Strategic association with the Kerry Group for marketing and direct sales to 70-80 registered customers.

🌍 External Factors

Industry Trends

The global pharma lactose market is growing at a 5.2% CAGR, reaching USD 3.21B by 2032. The industry is shifting toward specialized excipient grades and prebiotic applications for lactulose.

Competitive Landscape

Intense competition from both local and global players in the bulk drugs and excipients industry.

Competitive Moat

Moat is based on a 40% domestic market share in lactose and being the sole Asian manufacturer of lactulose, supported by WHO-cGMP compliance and Kerry Group's marketing reach.