Company Background and Business Model

Veerhealth Care Limited was originally incorporated on 10 July 1992 as Niyati Leasing Limited. In 2013, the company diversified into the pharma sector and changed its name. In 2020, it commenced operations in cosmetic manufacturing. The company is a contract manufacturing organization (CDMO) specializing in oral care and skin care products, operating with three licenses: Ayush (herbal), cosmetic (under drug OTC and cosmetic), and disinfectant. Its business model focuses on long-term customer relationships rather than short-term opportunities, serving international institutional supply, established FMCG companies, healthcare businesses, and hospitality suppliers.

Key Operational and Financial Highlights

Financial Performance:

  • FY25-26 Turnover: Approximately ₹30 crores.
  • Q1 FY26-27 Turnover: Approximately ₹25 crores.
  • FY26-27 Revenue Target: Approximately ₹100 crores.
  • FY26-27 PAT Target: Approximately ₹5-6 crores.

Q1 FY27 Revenue Breakdown:

  • 70% from contract manufacturing.
  • 20% from export business.
  • 10% from own brand (AYUVEER) revenue.

Regulatory Achievements:

  • US FDA certification received in July 2025 after a March 2025 audit. The plant is registered under drug OTC.
  • Also holds CGMP certification and ISO 22715 certification.
  • In process of obtaining SEDEX and Six Sigma certifications.

Manufacturing and Expansion:

  • Primary facility located in Vapi.
  • In October 2026, the company acquired an additional 30,000 sq ft of land adjacent to its existing facility, increasing the total production area from 60,000 sq ft to 90,000 sq ft.
  • Current manufacturing capacity utilization is 65-70%.
  • Expansion underway to add three new manufacturing lines, R&D lab, laboratory facilities, warehouses, and stores, expected to be completed by December 2026.
  • Post-expansion, capacity will increase to 5-6 lines for personal care and 3 lines for oral care, targeting 90% utilization.
  • A plastic division was launched for backward integration, manufacturing bottles, caps, canisters, enclosures, and toothbrushes.

Customer Relationships and Order Book:

  • Major US customer is an institutional supplier to government contracts, providing consistent orders under Long-Term Agreements (LTAs).
  • Major domestic customer is one of the oldest FMCG businesses in India, with over 7,000 pharmacy outlets. The relationship began in November 2025 and currently involves manufacturing 3 face care products. Recent orders include a ₹4.36 crore repeat skin care order and a separate ₹4.55 crore face care order from this same customer.
  • Another domestic customer is a healthcare company with a network of over 3,000 retail stores across India.
  • Received a first trial order from an Indo-Canadian company supplying to major hotels and airlines, opening the hospitality supply chain segment.
  • Strong order book reported from both export and contract manufacturing sides for the remaining quarters.

Own Brand and International Presence:

  • Own brand AYUVEER covers hair, skin, body, and oral care with 42+ formulations/SKUs, available on e-commerce platforms (Amazon, Flipkart, Myntra) and ayuveer.com.
  • Direct export presence in US, East African markets (Uganda, Tanzania, Burundi, Kenya), and Middle East. Also serves other markets indirectly through merchant exporters.
  • The Canadian collaboration is a new focus area for expansion.

Management Commentary and Growth Drivers

Management cited the US FDA certification as a primary growth driver, making the company eligible for faster onboarding with large Indian FMCG players (e.g., Godrej, Marico, HUL, P&G) and strengthening international business prospects. The expansion of manufacturing capacity and automation is expected to improve economies of scale and profit margins. The company is focused on adding new products and SKUs for existing customers and developing new customer relationships. The association with the Canadian company is seen as a significant opportunity for growth in the hospitality sector.

Capital Structure and Fundraising

  • A preferential allotment process is underway and is expected to be completed within the current year (2026), with entire funds likely to be received in about two months.
  • The company is not currently looking at any further equity fundraising.
  • Promoter holding increase is under consideration for coming quarters.

Working Capital and Cash Flow

As revenues increased, receivables and payables also increased significantly during FY26. The company stated that its principal (major FMCG customer) provides support through cash facilities, quick payments, and assistance with procuring big-ticket materials, which helps manage working capital and operating cash flow for executing large orders.

Raw Material Costs

Ongoing geopolitical issues (e.g., war in Gulf) were stated to have minimal effect on raw material costs, as these are primarily negotiated and absorbed by the principal company in their contract manufacturing agreements.