KOPRAN - Kopran

📊 NSE: KOPRAN 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 9:00

💰 Financial Performance

Revenue Growth by Segment

Revenue for HY FY26 was INR 253.13 Cr. The API segment contributes approximately 50-55% of total revenue, while the Formulations segment accounts for the remaining 45-50%. FY25 total operating income was INR 629.60 Cr, representing a marginal growth of 2.39% compared to INR 614.9 Cr in FY24.

Geographic Revenue Split

The company has a significant export presence, catering to regions including Africa, Canada, the Middle East, the United Kingdom, and Southeast Asia. Specific percentage splits per region are not disclosed, but export operations are a primary driver of revenue and forex risk.

Profitability Margins

Operating profitability has been volatile, ranging between 9.57% and 13.31% over the three fiscal years ending FY25. FY25 PAT margin was 6.12% (INR 38.55 Cr), down from 8.29% (INR 50.9 Cr) in FY24, a decline of 24.3% YoY due to raw material price volatility.

EBITDA Margin

EBITDA margin for HY FY26 stood at 6.75% (INR 17.09 Cr). Quarterly performance showed extreme volatility, with Q2 FY26 margin at 2.51% compared to 10.45% in Q1 FY26 and 9.72% in Q2 FY25, primarily impacted by a forex loss of INR 8.24 Cr in Q2 FY26.

Capital Expenditure

The company maintains a comfortable financial risk profile in the absence of any major debt-funded capex plans over the medium term. Specific historical capex figures in INR Cr are not disclosed in the provided documents.

Credit Rating & Borrowing

CRISIL has placed the company's ratings on 'Rating Watch with Developing Implications' following the proposed amalgamation of Kopran Laboratories Limited. Interest coverage was healthy at 8.09 times for FY25, with gearing remaining below 0.30 times for the past five fiscal years.

⚙️ Operational Drivers

Raw Materials

Key Starting Materials (KSMs) are the primary raw materials. The API segment (50-55% of revenue) is highly susceptible to price volatility in these materials, which directly impacts the group's operating margins.

Import Sources

Not specifically disclosed, though the company mentions aligning with global standards and monitoring international economic conditions for procurement.

Key Suppliers

Not specifically named; however, the company's strategy involves securing two to four suppliers for each Key Starting Material (KSM) to mitigate procurement risks.

Capacity Expansion

Manufacturing facilities are located in Mahad and Khopoli, Maharashtra. Current installed capacity in MT or units and specific expansion timelines are not disclosed in the available documents.

Raw Material Costs

Raw material price volatility led to a moderation in operating profitability to 11.94% in FY25. The company is enhancing its sourcing strategy by developing its own KSMs to reduce cost sensitivity.

Manufacturing Efficiency

Not specifically disclosed, though the company emphasizes investing in advanced technologies and R&D to maintain competitiveness.

Logistics & Distribution

The company employs a dedicated logistics team to proactively manage the supply chain and ensure timely actions to avoid disruptions in global distribution.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the proposed amalgamation of Kopran Laboratories Limited (KLL) into Kopran Limited to consolidate operations. Other strategies include R&D investment in advanced technologies, expansion in therapeutic segments like anti-diabetic and anti-hypertensive, and strengthening global market presence.

Products & Services

The company manufactures and supplies international quality formulations and APIs, including antibiotics, anti-malarials, analgesics, anti-diabetics, anti-infectives, and anti-hypertensives.

Brand Portfolio

Kopran is the primary corporate brand; specific consumer brand names for individual medicines are not listed in the documents.

New Products/Services

The company focuses on diverse therapeutic segments including anti-diabetic, anti-infective, and anti-hypertensive drugs. Specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Target regions for expansion include Africa, Canada, the Middle East, the United Kingdom, and Southeast Asia, leveraging the promoter's 40+ years of experience.

Strategic Alliances

The company collaborates with global partners to stay updated on technological advancements and innovation in the pharmaceutical sector.

🌍 External Factors

Industry Trends

The industry is characterized by a need for continual innovation and adherence to evolving global regulatory standards. Kopran is positioning itself by diversifying its therapeutic offerings and strengthening its API sourcing.

Competitive Landscape

The company operates in a highly competitive landscape which impacts pricing strategies and overall profitability, especially in the API segment.

Competitive Moat

The company's moat is built on the promoter's 40-year experience, established relationships with stakeholders, and an integrated business model (API + Formulations). Sustainability depends on successful R&D and regulatory compliance.

Macro Economic Sensitivity

The company is sensitive to global economic conditions, inflation, and exchange rate fluctuations, particularly given its heavy reliance on exports.

Geopolitical Risks

Export operations to diverse geographies like the Middle East and Africa expose the company to regional geopolitical shifts and trade policy changes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent government policies and regulatory frameworks. Non-compliance poses a significant reputational and operational risk.

Environmental Compliance

The company strictly adheres to environmental regulations and regularly files Compliance Reports to safeguard its reputation and maintain profitability.

Taxation Policy Impact

Tax expenses for HY FY26 were INR 0.74 Cr. The company adheres to Indian Accounting Standards (Ind AS) and relevant tax laws.

Legal Contingencies

The proposed amalgamation of Kopran Laboratories Limited is pending approvals from the BSE, NSE, and the National Company Law Tribunal (NCLT). No other specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Key risks include forex volatility (impacted Q2 FY26 by INR 8.24 Cr), volatile raw material prices for APIs, and the successful completion of the KLL amalgamation.

Geographic Concentration Risk

While specific percentages are missing, the company has high geographic diversification across Africa, Canada, UK, and SE Asia, reducing dependency on any single domestic market.