NSE: KPL · BSE: 539997 · ISIN INE552U01010
Kwality Pharmaceuticals Limited stock analysis
Kwality Pharmaceuticals Limited ranks #248 in the TickerSutra evidence-ranked universe with a score of 68/100 and 95% data confidence. The latest captured fundamentals show ROCE of 24.1%, quarterly sales growth of 45.6% and quarterly profit growth of 114.8%.Watchlist candidate
INVESTMENT EVIDENCE
What supports—and challenges—the thesis
Evidence in favour
- ROCE is 24.1%
- 26.1% three-year sales CAGR
- Institutional ownership is rising
- CWIP indicates an active capacity pipeline
- No promoter shares are reported as pledged
Risks and constraints
- CFO/EBITDA is below 0.6×
- Valuation is above 40× earnings
Still unresolved: Related-party exposure · Broad media sentiment
FINANCIAL TRAJECTORY
Recent operating history
| Period | Revenue | Operating profit | Net profit | Operating margin |
|---|---|---|---|---|
| 2022 | ₹456cr | ₹172cr | ₹120cr | 38.0% |
| 2023 | ₹251cr | ₹61cr | ₹19cr | 24.0% |
| 2024 | ₹307cr | ₹66cr | ₹24cr | 22.0% |
| 2025 | ₹370cr | ₹80cr | ₹40cr | 22.0% |
| 2026 | ₹503cr | ₹118cr | ₹67cr | 24.0% |
| TTM | ₹554cr | ₹135cr | ₹81cr | 24.0% |
EXCHANGE EVENT TRIGGERS
Latest corporate disclosures
MANAGEMENT COMMENTARY
Signals from filed documents
Or it will generate some revenue in FY20... Kwality Pharmaceuticals Limited August 10, 2026 Page 16 of 18 Aditya Arora: Expansion plan. Expansion will generate revenue immediately sir, because we will make the submissions to the each of the ministries, even the European ministry, Hungary, we will make the -- the expansion submission we will make there, in INVIMA, Brazil also, Co lombia also, that we have made this ex
Profit After Tax rose almost 69% year-on-year, from ₹39.8 crore to ₹67.3 crore, taking PAT margins from 10.8% to 13.4%, while EBITDA margins expanded by around 200 basis points from 22% to 24%. A richer product mix, growing contrib ution from regulated and semi- regulated markets, operating leverage, and increasing traction in registration-led business in our key geographies contributed to this. The year was not with
So can you help us understand the reasons behind tha t? Was it due to a higher raw material cost or a different mix? Aditya Arora: I think sir, gross margins have improved from the last quarter.
Profitability grew faster than revenue in FY26. Profit After Tax rose almost 69% year-on-year, from ₹39.8 crore to ₹67.3 crore, taking PAT margins from 10.8% to 13.4%, while EBITDA margins expanded by around 200 basis points from 22% to 24%. A richer product mix, growing contrib ution from regulated and semi- regulated markets, operating leverage, and increasing traction in registration-led business in our key geogra
Conflict in the Middle East and West Asi a disrupted regional supply chains and delayed customer payments for much of FY26, keeping debtor days elevated at 208. We responded by tightening inventory management and payables, which brought ou r overall cash conversion cycle down from 208 days to 170 days even while the external environment remained difficult. That cycle has improved further in Q1 FY27.
Going forward, the Company will continue to focus on expanding its p resence in regulated markets through additional product registrations and regulatory approvals. The recent EU-GMP ap provals for its General and Beta Lactam manufacturing facilities are expected to enhance access to regulated markets and support future export growth The Company is pursuing capacity expansion across its Oncology and Biologics facilit
But how are we growing so fast in these end markets? Can this be attributed to our distributors which are like top distributors of that country or is it the quality of products or presence in certain niche products? So I just want to understand what is the right to win and how are we growing so fast?
Where do you see the strongest competitive moat today? Is it the formulation know- how, is it the manufacturing capabilities, regulatory approvals, or customer relationships? Aditya Arora: So ma'am, right now with the bioequivalence program, we have con sidered only three injectables.
In the FY28, we'll do INR80 crores to INR100 crores from Erythropoietin. But FY29, we see the registrations in the international market for Erythropoieti n only. So, that will be again will give a INR200 crores or INR250 crores revenues.
During FY 2025-26, the Company delivered strong financial and operational performance, reporting Revenue from Operations of ₹503 Crore , EBITDA of ₹118 Crore and Profit After Tax of ₹67 Crore . The Company continues to strengthen its global footprint through product registrations, regulatory approv als and expansion into new international markets. With ongoing investments in biologics, oncology and hormone manufactu
Where do you see the strongest competitive moat today? Is it the formulation know- how, is it the manufacturing capabilities, regulatory approvals, or customer relationships? Aditya Arora: So ma'am, right now with the bioequivalence program, we have con sidered only three injectables.
Threats The pharmaceutical industry remains highly competitive and subject to s tringent regulatory oversight across domestic and international markets. Frequent changes in regulatory requirements, pricing pressures in generic medicines, delays in product approvals and increasing compliance costs may impact business operations and profitability. The industry is also exposed to risks arisin g from supply chain disrupt
HOW TO READ THIS PAGE
Evidence, freshness and limitations
What does the TickerSutra score mean?
The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.
Which sources support this page?
Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.
Why can an item be unresolved?
Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.
Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer
DIRECTOR & BUSINESS NETWORK
Loading corporate intelligence
Loading universe coverage and exchange-backed evidence…