💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of pharmaceutical trading. Revenue from operations for H1 FY26 stood at INR 5,133.40 Lakhs, representing a 2.01% YoY growth compared to INR 5,032.28 Lakhs in H1 FY25. On a half-yearly basis, revenue grew 2.85% compared to the preceding half-year (H2 FY25) which was INR 4,991.12 Lakhs.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered in Mumbai, Maharashtra, and holds MIDC land for factory construction.

Profitability Margins

Gross margins (Revenue minus Purchases and Inventory changes) stood at INR 630.63 Lakhs (12.28% of total income) in H1 FY26. Net Profit Margin for H1 FY26 was 4.68%, a slight improvement from 4.66% in FY25, despite a 18.15% YoY decline in absolute Net Profit from INR 295.11 Lakhs in H1 FY25 to INR 241.54 Lakhs in H1 FY26 due to higher tax provisions.

EBITDA Margin

Operating Profit (before interest, tax, and depreciation) for H1 FY26 was INR 468.31 Lakhs, representing an EBITDA margin of 9.07%. This is a decrease from the 11.66% margin recorded in H1 FY25 (INR 586.85 Lakhs) due to higher employee benefit expenses which rose 103.6% YoY to INR 121.98 Lakhs.

Capital Expenditure

The company has invested INR 53.39 Lakhs in Capital Work-in-Progress as of September 30, 2025, for the construction of a new factory building. Total Property, Plant, and Equipment (PPE) and Intangible assets stand at INR 847.48 Lakhs.

Credit Rating & Borrowing

Total borrowings decreased by 7.9% from INR 2,177.29 Lakhs in March 2025 to INR 2,007.91 Lakhs in September 2025. Finance costs for H1 FY26 were INR 106.12 Lakhs, implying an annualized average borrowing cost of approximately 10.57%.

⚙️ Operational Drivers

Raw Materials

As a trading entity, the primary cost is 'Stock-in-Trade' (finished pharmaceutical products), which accounted for INR 4,261.57 Lakhs or 88.2% of total expenses in H1 FY26.

Import Sources

Not disclosed in available documents; primarily domestic sourcing for pharmaceutical distribution.

Key Suppliers

Not disclosed in available documents; however, the company acts as a wholesale distributor for various pharmaceutical brands.

Capacity Expansion

The company received MIDC building plan approval and commenced construction of a new factory building on September 6, 2025. Current Capital Work-in-Progress is INR 53.39 Lakhs, up from INR 11.01 Lakhs in March 2025.

Raw Material Costs

Purchase of stock-in-trade decreased by 10.15% YoY from INR 4,743.23 Lakhs in H1 FY25 to INR 4,261.57 Lakhs in H1 FY26, reflecting tighter procurement or shifts in product mix.

Manufacturing Efficiency

Currently a trading-focused model; efficiency is measured by inventory turnover. Inventory turnover ratio (annualized) is approximately 9.3x based on H1 FY26 COGS.

Logistics & Distribution

Distribution and other expenses represented 1.41% of total revenue in H1 FY26, down from 1.55% in H1 FY25.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be driven by the acquisition of a 95% stake in Zen Pharmaceuticals (INR 5.97 Cr turnover) for INR 45 Lakhs and the planned acquisition of Siddharth Drugs. Additionally, the transition from pure trading to manufacturing via the new MIDC factory building is expected to improve margins and market reach.

Products & Services

Wholesale distribution of drugs, medicines, and pharmaceutical products.

Brand Portfolio

VijayPD Ceutical (formerly Vijay Pharma).

New Products/Services

Expansion into manufacturing following the completion of the factory building; expected to contribute to revenue post-FY26.

Market Expansion

Strategic focus on expanding the 'Pharma Distribution' footprint through inorganic acquisitions in the Maharashtra region.

Market Share & Ranking

Not disclosed; operates in the highly fragmented pharmaceutical wholesale distribution market.

Strategic Alliances

Signed Letter of Intent (LOI) for the acquisition of Siddharth Drugs Private Limited and completed the acquisition of Zen Pharmaceuticals.

🌍 External Factors

Industry Trends

The pharmaceutical distribution industry is shifting toward consolidation and organized players. The company is positioning itself by acquiring smaller firms (Zen Pharmaceuticals) to gain scale and moving toward backward integration into manufacturing.

Competitive Landscape

Competes with numerous unorganized and organized regional pharmaceutical distributors and C&F agents.

Competitive Moat

The company's moat is built on its established distribution network in Mumbai and its recent listing on the NSE Emerge platform (Oct 7, 2025), which provides better access to capital for its M&A-led growth strategy.

Macro Economic Sensitivity

Highly sensitive to healthcare spending and pharmaceutical consumption trends in India.

Consumer Behavior

Increased demand for chronic disease medication and generic drugs is driving higher volumes through wholesale channels.

Geopolitical Risks

Low, as operations are concentrated in the domestic Indian pharmaceutical market.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Drug and Cosmetics Act regulations, wholesale drug licenses, and MIDC building norms for its new facility.

Environmental Compliance

Not disclosed; will become relevant once the factory construction is completed and manufacturing commences.

Taxation Policy Impact

Effective tax rate for H1 FY26 was 27.77% (INR 92.88 Lakhs tax on INR 334.42 Lakhs PBT).

Legal Contingencies

No material legal contingencies or pending court cases disclosed in the financial notes.

⚠️ Risk Analysis

Key Uncertainties

Integration risk of acquired entities (Zen Pharmaceuticals and Siddharth Drugs) and potential delays in the construction of the MIDC factory could impact the 10-15% growth target.

Geographic Concentration Risk

High concentration in Mumbai and Maharashtra, with the corporate office and new factory both located in this region.

Third Party Dependencies

High dependency on pharmaceutical manufacturers for supply and credit terms; trade payables stand at INR 253.10 Lakhs.

Technology Obsolescence Risk

Low risk in trading, but requires digital inventory management systems to maintain the current 9.3x turnover ratio.

Credit & Counterparty Risk

Trade receivables of INR 2,322.30 Lakhs are high relative to half-yearly sales, suggesting potential credit risk if collections from retail pharmacies slow down.