VAISHALI - Vaishali Pharma

📊 NSE: VAISHALI 🏢 Trading 📅 Last Updated: 12/14/2025 14:53

💰 Financial Performance

Revenue Growth by Segment

The company operates in two primary segments: API (Active Pharmaceutical Ingredients) which contributes 60% of revenue, and Formulations/Surgical/Veterinary which contributes 40%. Revenue from operations grew 14.77% YoY to INR 99.03 Cr in FY25 from INR 86.28 Cr in FY24.

Geographic Revenue Split

Domestic sales account for 50-55% of revenue, while export business contributes 40-45%. The company has a presence in 40+ countries, with strategic partnerships in Russia, Kenya, and D.R. Congo.

Profitability Margins

Net profit margin for 9M FY24 was 9.82% (INR 5.40 Cr). However, for the full year FY25, Profit Before Tax stood at INR 1.23 Cr on a total income of INR 102.23 Cr, representing a PBT margin of approximately 1.2%. The company aims to expand EBITDA margins to 25% within five years by shifting focus to high-margin formulations.

EBITDA Margin

EBITDA margin was 16.45% for 9M FY24 (EBITDA of INR 9.05 Cr) but showed volatility, dipping to 12.05% in Q3 FY24. The company is targeting a long-term sustainable EBITDA margin of 25% through product mix optimization.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr, but the company is actively 'boosting production capacity' and scaling up operations to meet surging demand in international markets.

Credit Rating & Borrowing

Finance costs were INR 1.58 Cr in FY25, a decrease of 8.86% from INR 1.74 Cr in FY24, suggesting improved debt management or lower utilization of credit lines.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (APIs) represent the primary raw material for the formulation segment, while stock-in-trade purchases for the trading business accounted for INR 90.10 Cr (91% of revenue) in FY25.

Import Sources

Sourced from domestic and international markets; specific countries are not named, but the company maintains an office in Vietnam and partnerships in Russia and Africa for trade and distribution.

Capacity Expansion

Current warehouse capacity is over 100 tonnes in Bhiwandi, Maharashtra. The company is scaling production capacity to cater to international demand, supported by WHO-GMP, EU-GMP, and USFDA approved facilities.

Raw Material Costs

Purchases of stock-in-trade reached INR 90.10 Cr in FY25, up 25.59% from INR 71.75 Cr in FY24. This high cost-to-revenue ratio reflects the company's significant trading and marketing operations.

Manufacturing Efficiency

The company utilizes WHO-GMP and USFDA approved facilities to ensure high-quality standards, which acts as a barrier to entry and improves acceptance in regulated markets.

Logistics & Distribution

Distribution is handled through a network of 1,000+ customers across 35+ locations globally.

📈 Strategic Growth

Expected Growth Rate

38%

Growth Strategy

The company plans to reach INR 500 Cr revenue in 5 years by shifting the revenue mix from 60% API to a 50/50 split with high-margin formulations. Strategy includes registering new brands in export markets, expanding the veterinary business in Russia, and leveraging the Sankalp Life Care partnership for nutraceuticals.

Products & Services

Active Pharmaceutical Ingredients (APIs), pharmaceutical formulations, surgical products (including gloves and medical disposables), veterinary supplements, herbal products, nutraceuticals, and oncology medicines.

Brand Portfolio

Vaishali Pharma, Sankalp Life Care (marketing operations).

New Products/Services

Continuous registration of new brands in the formulation and veterinary segments is expected to drive the margin expansion from 16% to 25%.

Market Expansion

Targeting expansion in Russia (veterinary), Kenya, D.R. Congo, and Vietnam. The company recently participated in CPHI Barcelona to increase global visibility.

Market Share & Ranking

Positioned as a leading player in Russia's veterinary product domain within just two years of entry.

Strategic Alliances

Strategic partnership with Sankalp Life Care to oversee and operate their domestic and international marketing operations for nutraceuticals.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized nutraceuticals and veterinary health. Vaishali is positioning itself by moving from pure API trading to a brand-led formulation model to capture higher value-add.

Competitive Landscape

Competes with both domestic API traders and international formulation players in emerging markets.

Competitive Moat

Moat is built on 'Strong Entry Barriers' created by requisite registrations and certifications (WHO-GMP, USFDA) and a portfolio of 250+ registered brands which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to global pharmaceutical supply chain shifts and healthcare spending in emerging markets like Africa and CIS countries.

Consumer Behavior

Increased global focus on preventive health is driving demand for the company's herbal and nutraceutical segments.

Geopolitical Risks

Operations in Russia and African nations expose the company to regional geopolitical instability and changes in import regulations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by WHO-GMP, EU-GMP, and USFDA manufacturing standards. Compliance with diverse regulatory requirements of 40+ countries is mandatory for brand registrations.