Senores Pharma Stock Plunges 6% Despite 88% Profit Surge

HEALTHCAREBIOTECH
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AuthorAnanya Iyer|Published at:
Senores Pharma Stock Plunges 6% Despite 88% Profit Surge
Overview

Senores Pharmaceuticals reported a strong third quarter with net profit soaring 88% to ₹32 crore and revenue climbing 69.4% to ₹174.5 crore. EBITDA more than doubled as margins expanded sharply to 31%. Despite record performance in emerging markets and progress on its Apnar acquisition, shares fell over 6% on Tuesday.

The sharp drop in Senores Pharmaceuticals' stock price on Tuesday defied its robust third-quarter financial results. Shares shed over 6% to ₹756.10 on the NSE, even as the company announced an 88% year-on-year surge in net profit to ₹32 crore on revenue growth of 69.4% to ₹174.5 crore for Q3 FY26.

Margin Expansion and Operating Leverage

EBITDA more than doubled to ₹54 crore from ₹25.4 crore in the prior year. This surge was accompanied by a significant expansion in EBITDA margins, which widened to 31% from 25%. The company attributed this improvement to operating leverage and a more favorable product mix. Cash flow from operations also showed a sharp increase, reaching ₹19 crore for the quarter.

Emerging Markets Strength

Senores Pharmaceuticals achieved its highest-ever quarterly revenue and EBITDA from emerging markets. This segment saw revenue increase by nearly 48% year-on-year, with EBITDA margins jumping to approximately 13% from about 1% in Q3 FY25. A strategic shift towards niche products contributed to this turnaround, with the emerging markets business turning cash flow positive during the quarter.

Strategic Acquisition Progress

The company also advanced its acquisition strategy, completing the first phase of its Apnar Pharmaceuticals acquisition by securing a 75% stake. The remaining 25% is slated for acquisition by Q2 FY27. Three of Apnar's approved ANDAs are scheduled for launch in Q4 FY26, with integration proceeding faster than anticipated. Managing Director Swapnil Shah highlighted new ANDA launches and expanded manufacturing capabilities as key growth drivers. He affirmed the company remains on track to meet its full-year guidance.

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