1. At a Glance

Shilpa Medicare — the oncology API and formulations specialist that loves high-tech pharma but apparently also loves holding on to inventory like it’s a family heirloom. Q1 FY26 saw revenue at ₹321 crore (-0.78% YoY) and PAT shooting up 233% YoY to ₹46.9 crore thanks to margin expansion to a solid 28%. But don’t get too excited — this is still a business with aP/E of 68.6and a cash conversion cycle longer than some Netflix series. The latest gossip?1:1 bonus issueand promoters seeking reclassification for a 4.09% stake to “public” status.

2. Introduction

Think of Shilpa Medicare as that overachieving student who gets straight A’s in oncology APIs but consistently forgets to turn in homework on working capital management. Founded in 1987, they’ve climbed to a ₹8,826 crore market cap supplying complex APIs and formulations to regulated markets like the US, EU, Japan, and more.

But here’s the thing: the company’s sales growth over the last 5 years is just 7.2%, ROE is under 5%, and promoter holding has slid from 50% to 44%. The stock’s recent rally? A cocktail of better margins, bonus news, and investor hope.

3. Business Model (WTF Do They Even Do?)

Shilpa Medicare’s empire is built on:

• Oncology APIs– 30+ APIs approved in regulated markets.
• Formulations– Injectable, oral solid dosage, oral disintegrating films.
• CRAMS (Contract Research and Manufacturing Services)– For customers who want niche molecules made without the headache.

Key edge: Regulatory approvals from USFDA, EU, PMDA-Japan, TGA-Australia, etc. Key risk: Lumpy demand, long