Financial Performance Highlights

H2 FY26 Performance (Ending March 31, 2026):

  • Revenue from operations: ₹39.84 Cr (50% YoY growth)
  • EBITDA: ₹6.40 Cr (25% YoY growth)
  • PAT: ₹4.51 Cr (22% YoY growth)

Full Year FY26 Performance:

  • Revenue from operations: ₹73.13 Cr (44% YoY growth)
  • EBITDA: ₹12.72 Cr (26% YoY growth)
  • EBITDA margin: 17.39%
  • PAT: ₹9.03 Cr (25% YoY growth)
  • PAT margin: 12.3%
  • ROCE: 26.04%
  • ROE: 19.39%

Segment-wise Revenue Breakdown:

  • Export revenue: ₹6 Cr (164% growth in FY26)
  • Veterinary segment: 55% of total revenue
  • Human healthcare: 45% of total revenue

Business Overview and Strategy

Company Background:

  • Established in 1965 with over six decades of experience in natural healthcare
  • Portfolio of approximately 300 herbal formulations across human and animal health
  • Certified manufacturing units in Himmatnagar (GMP, HACCP, ISO 9001, ISO 22000)
  • Low-debt company with high operating efficiency

Product Portfolio:

Human Healthcare: Lemon & Barley Water, Sherolax Tablet, Gashoshel Tablet, Meryn Tablet, Joemega Capsule, All Vitamins

Veterinary Health: Mineral mixture powder Agriculture, multi-vitamin powder Feedvet, Lactocal Gel, Vymet Liquid, Diarub Bolus, Livodin Liquid

Expansion Plans:

  • Acquired land near Ahmedabad for second manufacturing facility at cost of ₹2.5 Cr (funded through internal accruals)
  • New facility expected to require ₹12-15 Cr investment, likely funded internally
  • Target to commence plant installation by end of calendar year 2027
  • Revenue target of ₹200 Cr by FY2030

Market Expansion:

  • Currently operating in 15 Indian states (previously 12 states)
  • Export markets: UAE, Kuwait, Iraq, Qatar, Nepal, Bangladesh, Mauritius, Yemen, Sudan
  • Advanced discussions for expansion in African markets
  • Exploring government procurement schemes (KPKB, CGHS, CSD)

Operational Metrics

  • Sales team: 80 people across India
  • Office staff: 12 people in Ahmedabad
  • Factory staff: 50 people
  • Doctor network: 12,000+ doctors
  • Retail pharmacy network: 5,000+ outlets

Management Commentary Highlights

Margin Outlook:

  • Current EBITDA margin dip attributed to expansion costs
  • Expect margins to improve to 20-25% in coming years
  • Export margins 20-25% higher than domestic market
  • Human and veterinary medicine margins similar

Working Capital:

  • Working capital cycle currently at 234 days
  • Previously operated with immediate cash payments in limited states
  • Currently offering credit periods (reducing from 120 to 90 to 60 days)
  • Target to reduce to 30-day credit period
  • ₹37 Cr loans and advances primarily for raw material procurement for future requirements

Growth Drivers:

  • Pan-India expansion (currently 15 states)
  • Export market growth (Q1 FY27 exports already exceed ₹5 Cr)
  • New product launches in nutraceuticals (higher margins)
  • Government tender participation

Q&A Session Key Points

Promoter Stake:

  • Recent stake reduction attributed to internal family restructuring
  • Promoters are adding stakes and substantially involved

Order Pipeline:

  • Verka-dairy order: ₹1-1.5 Cr initial value
  • Typical export container value: ₹1-1.5 Cr
  • Order book size not disclosed

Product Focus:

  • Lemon & Barley Water: ₹3.0-3.5 Cr revenue, no direct competition in kidney stone management
  • Focus on expanding this product nationally

Capital Structure:

  • Zero-debt company
  • Preference share issue of ₹42.44 Cr for working capital requirements
  • No immediate plans for additional capital raising

Market Context

  • Indian Ayurvedic products market valued at ₹1,070 billion in 2025
  • Projected to reach ₹3,728 billion by 2034 (15.52% CAGR)
  • Sector supported by Ministry of AYUSH and AYUSH Export Council