BAFNAPH - Bafna Pharma.

📊 NSE: BAFNAPH 🏢 Pharmaceuticals - Indian - Formulations 📅 Last Updated: 12/13/2025 18:52

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: pharmaceutical formulations. Total revenue for FY 2024-25 was INR 145.86 Cr. For the half-year ended September 30, 2025, revenue was INR 70.09 Cr, representing a 4.78% decline compared to INR 73.61 Cr in the same period of the previous year.

Geographic Revenue Split

Approximately 50% of revenues are derived from exports. Key markets include regulated regions like the UK and Australia, and semi-regulated/unregulated markets such as the Philippines, Sri Lanka, Ethiopia, Ukraine, Nigeria, and Tanzania.

Profitability Margins

Operating Profit Margin improved to 6.19% in FY 2024-25 from 4.82% in FY 2023-24 (a 28.42% improvement) due to expense reduction. However, Net Profit Margin fell to 2.72% from 4.82% (a 43.57% decline) primarily due to a significant asset write-off and increased borrowing costs.

EBITDA Margin

EBITDA Margin stood at 9.54% for FY 2024-25, showing a marginal decline of 0.63% from 9.60% in FY 2023-24, indicating stable core operational profitability despite bottom-line pressures.

Capital Expenditure

The company has a total planned capex of INR 24.5 Cr over three years: INR 11.5 Cr in FY 2025, INR 10.0 Cr in FY 2026, and INR 3.0 Cr in FY 2027, focused on capacity expansion and maintenance.

Credit Rating & Borrowing

ICRA reaffirmed ratings at [ICRA]BB+ (Stable) for long-term and [ICRA]A4+ for short-term facilities as of April 2025. CRISIL previously withdrew its 'D' rating in 2020 following a 'no dues certificate' from bankers.

⚙️ Operational Drivers

Capacity Expansion

Planned expansion involves a capex of INR 11.5 Cr in FY 2025 and INR 10.0 Cr in FY 2026 to increase manufacturing scale and support growth in lifestyle disease segments.

Manufacturing Efficiency

The company focuses on the lifestyle diseases segment (diabetology, CNS, respiratory) to optimize its manufacturing mix for higher-demand therapeutic areas.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through a three-year INR 24.5 Cr capex plan for capacity expansion, focusing on the lifestyle disease segment (diabetology, pain management), and leveraging established relationships with major players like Cipla and Strides Pharma.

Products & Services

Pharmaceutical formulations including Metformin (diabetology), Fluoxetine (CNS), and Quilonum (CNS).

Brand Portfolio

Metformin, Fluoxetine, and Quilonum.

New Products/Services

The company is focusing on emerging opportunities in CRAMS (Contract Research and Manufacturing Services) and biosimilars to diversify its revenue streams.

Market Expansion

Targeting expansion in regulated markets like the UK and Australia, alongside emerging markets in Africa and the Commonwealth countries.

Strategic Alliances

Maintains established contract manufacturing relationships with Cipla Limited and Strides Pharma Science Limited.

🌍 External Factors

Industry Trends

The Indian pharma industry is shifting toward CRAMS, biosimilars, and digital health. Long-term competitiveness depends on innovation and strategic global partnerships to navigate supply chain and margin pressures.

Competitive Landscape

Competes with other Indian formulation manufacturers in both regulated and semi-regulated markets; market dynamics are driven by pricing and manufacturing compliance standards.

Competitive Moat

Moat is built on 3 decades of manufacturing experience and established relationships with global pharma leaders, though it is challenged by high customer concentration and regulatory compliance requirements.

Macro Economic Sensitivity

Sensitive to global healthcare spending and regulatory changes in export markets like the UK and Australia.

Consumer Behavior

Increasing prevalence of lifestyle diseases (diabetes, respiratory issues) is driving sustained demand for the company's core product portfolio.

Geopolitical Risks

Operations in Ukraine and various African nations expose the company to regional geopolitical instability and trade barrier risks.

⚖️ Regulatory & Governance

Industry Regulations

Subject to high manufacturing compliance standards and government price controls/caps, which are identified as key social and regulatory risks.

Taxation Policy Impact

The company is involved in pending litigations concerning direct and indirect tax matters with various statutory authorities.

Legal Contingencies

Pending litigations include direct and indirect tax disputes. Additionally, the company faced non-compliance issues with SEBI regarding Minimum Public Shareholding and appointment of a Compliance Officer, for which penalty provisions have been made.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'temporary' derecognition of INR 1.77 Cr in intangible assets and the potential for future write-downs if product registrations do not yield economic benefits.

Geographic Concentration Risk

While diversified, the company relies heavily on the UK and Australia for regulated market revenue, making it sensitive to regulatory shifts in those two regions.