VALIANTLAB - Valiant Laborato

📊 NSE: VALIANTLAB 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 14:53

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for the half-year ended September 30, 2025, grew by 130.47% YoY to INR 9,302.52 Lakhs from INR 4,036.33 Lakhs, primarily driven by the Paracetamol API segment.

Profitability Margins

Net Profit Margin (Consolidated) for the 6 months ended September 30, 2025, was 2.17% (INR 202.10 Lakhs profit), a significant recovery from a negative margin in the previous year's corresponding period (INR 525.01 Lakhs loss).

EBITDA Margin

Operating Profit Margin was reported at 1.97% for the period ending September 30, 2025, reflecting tight core profitability due to high material costs.

Capital Expenditure

Capital expenditure for the 6 months ended September 30, 2025, included INR 1,904.24 Lakhs for the purchase of property, plant, and equipment, including capital advances.

Credit Rating & Borrowing

The credit rating was downgraded to 'CRISIL BB+/Stable Issuer not cooperating' from 'CRISIL BBB/Negative'. Finance costs for the 6 months ended September 30, 2025, were INR 20.92 Lakhs.

⚙️ Operational Drivers

Raw Materials

Specific chemical names are not disclosed, but 'Cost of Materials Consumed' represents 83.66% of total revenue (INR 7,783.16 Lakhs).

Capacity Expansion

The company utilized proceeds from a Rights Issue (July 2025) for business objects; current manufacturing is concentrated at the Tarapur, Maharashtra facility.

Raw Material Costs

Raw material costs reached INR 7,783.16 Lakhs for the 6 months ended September 30, 2025, representing 83.66% of revenue, up from 90.06% in the previous year's corresponding period.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the utilization of Rights Issue proceeds (July 2025) to fund business objects and leveraging its established 1980 foundation in specialized Paracetamol API manufacturing.

Products & Services

Paracetamol (Active Pharmaceutical Ingredient).

Brand Portfolio

Valiant Laboratories.

Strategic Alliances

The company operates through its subsidiary, Valiant Advanced Sciences Private Limited.

🌍 External Factors

Industry Trends

The API industry is seeing a shift towards domestic manufacturing in India; Valiant is positioned as a Paracetamol specialist with a long-standing facility in Tarapur, Maharashtra.

Competitive Moat

Durable advantage stems from a long-standing operational history since 1980 and specialized manufacturing scale in Paracetamol API, which is a high-volume essential medicine.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pharmaceutical manufacturing standards for APIs and SEBI Regulation 29 (Listing Obligations).

Taxation Policy Impact

The effective tax rate for the 6 months ended September 30, 2025, was approximately 36.8% (INR 117.99 Lakhs tax on INR 320.09 Lakhs PBT).

Legal Contingencies

Fines were imposed by BSE and NSE for non-compliance with Regulation 29 of SEBI (LODR) Regulations, 2015, as noted in the November 2025 board comments.