SAROJA - Saroja Pharma In

📊 NSE: SAROJA 🏢 Chemicals 📅 Last Updated: 12/14/2025 12:51

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment: Pharma Chemicals. While absolute revenue was not disclosed, the Net Capital Turnover Ratio increased by 11.77% to 8.25, indicating improved revenue generation efficiency per unit of capital.

Geographic Revenue Split

Not disclosed in available documents, though the company notes significant exposure to global and Indian demand-supply conditions.

Profitability Margins

Net profit ratio was 1.92% for the year ended March 31, 2025, representing a 10.87% decrease from 2.16% in the previous year. Return on Capital Employed (ROCE) fell by 25.45% to 9.50% due to an increase in capital employed.

EBITDA Margin

Not explicitly disclosed; however, the Return on Equity (ROE) declined by 12.17% to 4.14% in FY25 compared to 4.71% in FY24.

Capital Expenditure

The company utilized INR 7.05 Cr (704.88 Lacs) from IPO proceeds to set up a new manufacturing unit to transition from trading to manufacturing. An additional INR 1.75 Cr was used to repay unsecured loans.

Credit Rating & Borrowing

Credit rating not disclosed. The net debt-equity ratio increased by 54.01% to 0.60 in FY25, driven by a likely increase in net borrowings. The Debt Service Coverage Ratio improved by 10.99% to 2.11.

⚙️ Operational Drivers

Raw Materials

Key products and inputs include Thionyl Chloride, Ethyl Acetate, and Benzyl Chloride. Specific percentage of total cost for each was not disclosed.

Import Sources

Raw materials are primarily sourced from China and India, which are identified as key geographic regions for pharma intermediates.

Capacity Expansion

The company invested INR 7.05 Cr in setting up a manufacturing unit to enhance its production capabilities in pharma chemicals and APIs. Specific MTPA capacity was not disclosed.

Raw Material Costs

Not disclosed as a percentage of revenue, but the company identified 'Input Cost Risk' and raw material price volatility as major concerns that could compress the 1.92% net profit margin.

Manufacturing Efficiency

Capacity utilization was not disclosed; however, the company is focusing on technological advancements to improve operational efficiency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the operationalization of the new INR 7.05 Cr manufacturing unit, shifting the business model toward higher-margin manufacturing. The company is also focusing on market expansion in emerging regions and innovation in veterinary APIs and pharma intermediates.

Products & Services

Thionyl Chloride, Ethyl Acetate, Benzyl Chloride, Pharma Veterinary APIs, and Pharma Intermediates.

New Products/Services

The company is expanding its portfolio in Pharma Veterinary APIs and Pharma Intermediates, though specific revenue contribution percentages for new launches were not disclosed.

Market Expansion

Targeting emerging markets where healthcare access is expanding rapidly to capitalize on rising demand for pharmaceutical chemicals.

Strategic Alliances

Appointed M/s. H. Maheshwari & Associates as Secretarial Auditors for a five-year term (FY 2025-26 to FY 2029-30) to strengthen regulatory governance.

🌍 External Factors

Industry Trends

The pharma chemical and veterinary API sectors are growing due to rising healthcare demands. Trends include a shift toward sustainability, advanced manufacturing technologies, and supply chain resilience.

Competitive Landscape

Faces intense competition from both domestic and international players, as well as disruption from new technologies and biologics in the veterinary segment.

Competitive Moat

The company's moat is based on its specialized focus on pharma chemicals like Thionyl Chloride. However, this is challenged by industry-wide commoditization and rising regulatory barriers to entry in developed markets.

Macro Economic Sensitivity

Highly sensitive to global demand-supply conditions and changes in government tax regimes or economic developments in India and overseas.

Consumer Behavior

Increased healthcare spending and a shift toward generic pharma intermediates in emerging markets are driving demand.

Geopolitical Risks

Geopolitical tensions and trade barriers, particularly involving China and India, pose risks to raw material procurement and cost stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Good Manufacturing Practices (GMP), FDA/EMA quality standards, and environmental safety norms. Compliance is essential to avoid delays and additional costs.

Environmental Compliance

The company faces increasing environmental regulations and stricter standards for chemical manufacturing, requiring compliance with waste management protocols which increase operational costs.

⚠️ Risk Analysis

Key Uncertainties

Input cost volatility, regulatory scrutiny, and supply chain disruptions are the primary uncertainties, with potential to impact margins by over 10% based on historical net profit fluctuations.