SOTAC - Sotac Pharma.
Financial Performance
Revenue Growth by Segment
The company operates four segments: Non-Beta-Lactam, Beta-Lactam (6 crore bottle capacity), Molecule R&D, and Nutraceuticals. Subsidiary revenue (Nutraceuticals/R&D) reached INR 12.96 Cr for H1 FY26, contributing significantly to the consolidated top line.
Geographic Revenue Split
Operations are primarily concentrated in Ahmedabad, Gujarat, with manufacturing facilities in Sanand GIDC-II. Specific regional % split is not disclosed in available documents.
Profitability Margins
Standalone Profit Before Tax (PBT) for H1 FY26 was INR 3.12 Cr compared to INR 2.84 Cr in H1 FY25, representing a 9.9% growth. Subsidiary net profit for H1 FY26 stood at INR 0.25 Cr.
EBITDA Margin
Not explicitly disclosed as a percentage; however, standalone PBT grew 9.9% YoY, indicating stable core profitability despite rising debt costs.
Capital Expenditure
Total consolidated assets stood at INR 123.27 Cr as of September 30, 2025. Significant investment is noted in Sotac Lifesciences for nutraceutical manufacturing and Sotac Research for molecule development.
Credit Rating & Borrowing
The Debt-Equity ratio increased by 64.09% YoY, rising from 0.23 in FY24 to 0.38 in FY25, driven by an increase in total debts from INR 11.16 Cr.
Operational Drivers
Raw Materials
Pharmaceutical APIs and excipients for Non-Beta-Lactam and Beta-Lactam formulations; specific chemical names not disclosed.
Key Suppliers
Kerry Ingredients India Private Limited (Manufacturing agreement partner for nutraceuticals).
Capacity Expansion
Beta-Lactam vertical has an installed capacity of 6 crore dry syrup bottles. The company utilizes a contract manufacturing and loan license model to maintain agility.
Raw Material Costs
Cost of materials consumed is a primary expense line item; standalone PBT growth of 9.9% suggests managed procurement despite a 64.09% increase in debt-equity which impacts overall cost structures.
Manufacturing Efficiency
The company serves 162+ corporate clients across its verticals, indicating high utilization of its loan license and contract manufacturing infrastructure.
Strategic Growth
Expected Growth Rate
10%
Growth Strategy
Growth is driven by the expansion into the nutraceuticals market via Sotac Lifesciences and enhancing the product pipeline through molecule R&D at Sotac Research. The company is also securing large-scale orders from major pharma players like Cadila Pharmaceuticals.
Products & Services
Non-Beta-Lactam medicines, Beta-Lactam dry syrups, nutraceutical supplements, food products, and pharmaceutical molecule R&D services.
Brand Portfolio
SOTAC, Sotac Healthcare, Sotac Lifesciences, Sotac Research.
New Products/Services
Nutraceutical and food products launched through Sotac Lifesciences; molecule research for new formulations through Sotac Research.
Market Expansion
Expansion into the nutraceuticals segment to address growing health supplement demand.
Strategic Alliances
Manufacturing agreement with Kerry Ingredients India Private Limited; contract manufacturing for 162+ corporate clients.
External Factors
Industry Trends
The industry is shifting toward specialized contract manufacturing and nutraceuticals. Sotac is positioning itself by diversifying into food-based supplements and R&D to capture higher-margin segments.
Competitive Landscape
Competes with other SME and mid-cap contract manufacturers in the Gujarat pharma hub.
Competitive Moat
Moat is built on a large client base (162+) and specialized capacity (6 crore dry syrup bottles). Sustainability depends on maintaining 'true and fair' audit standards and improving regulatory disclosure timelines.
Macro Economic Sensitivity
Sensitive to pharmaceutical regulatory changes in India and the growth of the domestic nutraceutical market.
Consumer Behavior
Increasing consumer demand for nutraceuticals and preventive healthcare products.
Regulatory & Governance
Industry Regulations
Subject to Companies Act 2013 and SEBI (LODR) Regulations. Secretarial audit noted non-compliance with Regulation 30 (delayed disclosure) and SEBI PIT Regulations (Structured Digital Database entries).
Legal Contingencies
Delayed disclosure of manufacturing agreement with Kerry Ingredients (July 2024) and improper maintenance of the Structured Digital Database for UPSI sharing entries.
Risk Analysis
Key Uncertainties
Regulatory risks due to secretarial audit findings; financial risk from the 64.09% increase in debt-equity ratio.
Geographic Concentration Risk
High concentration in Ahmedabad/Sanand, Gujarat, for all manufacturing operations.
Third Party Dependencies
High dependency on 162+ corporate clients for contract manufacturing revenue.
Technology Obsolescence Risk
R&D vertical (Sotac Research) is used to mitigate the risk of product obsolescence by developing new molecules.
Credit & Counterparty Risk
Trade payables and receivables are significant; consolidated current assets of INR 70.55 Cr indicate substantial working capital exposure.