1. At a Glance
Procter & Gamble Health Ltd (NSE: PGHL, BSE: 500126) is that perfectly ironed shirt of India’s Vitamin-Mineral-Supplement (VMS) sector — neat, global, and slightly overpriced. The company just posted itsQ2FY26 results, deliveringsales of ₹319 crore(up3% YoY) andPAT of ₹89 crore(up8% YoY). The operating profit margin flexed a cool37%, and ROCE is so high at47.8%that even your local moneylender would blush.
At ₹6,066 per share and amarket cap of ₹10,069 crore, this P&G subsidiary trades at aP/E of 32.8x—because apparently vitamins are now the new gold standard of wealth preservation. The stock yields a calm2.06% dividendwhile showing off aROE of 36.4%andROCE of 47.8%, numbers that could make many midcaps question their life choices.
Debt? Barely ₹6.2 crore. Debt-to-equity? 0.01. Basically, a “0 EMI” lifestyle. But before you think it’s a saint, note this: it pays₹24 crorein royalties to its American parent, just to keep the “P&G” tag shining. And while the rest of the pharma industry screams about R&D, PGHL is busy organizing bus yatras for anemia awareness. Because why cure when you can campaign?
2. Introduction – The Vitamin Mogul with MBA Swag
Welcome toProcter & Gamble Health Ltd (PGHL)— a pharma company that acts more like a marketing major. This is not your regular lab-coat scientist business; it’s the corporate cousin who sells you “Evion for your glow” and “Neurobion for your nerves,” then smiles as you Venmo your savings away.
Once upon a time, this wasMerck Limited, untilP&G acquired it in 2018for about₹1,300 crore, as part of a global $4.2 billion shopping spree. What P&G basically did was turn a serious pharma operation into a marketing machine with global reach. Imagine taking an old-school chemistry lab and giving it a LinkedIn Premium subscription—that’s PGHL for you.
Its Goa factory handles manufacturing, while distribution has gone from old-schoolcarrying & forwarding agentstomodern distributors, all completed in FY23. It’s like going from Telegram to WhatsApp Business—same function, better emojis.
Despite its humble ₹1,284 crore annual sales, this company delivers margins that scream luxury brand. You’ll find it selling to India (90% of revenue) and sprinkling its vitamin fairy dust over 180 countries. It doesn’t make COVID vaccines or oncology drugs, but it sure knows how to sell you the importance of “iron and nerve health” with PR campaigns involvingbus yatras and hashtags.
So what happens when Big Pharma meets Big Marketing? Let’s chew this vitamin of financial wisdom together.
3. Business Model – WTF Do They Even Do?
PGHL is essentially India’svitamin, mineral, and supplement (VMS)powerhouse. It doesn’t make complicated molecules, it makes your daily tablets sound fancy. Think of it as the “Tanishq of tablets” — premium, polished, and neatly packaged for middle-class guilt and upper-class wellness.
Its blockbuster brands include:
- Evion– India’s best-known Vitamin E capsule. Skin influencers love it more than dermatologists do.
- Neurobion– That “B-vitamin for nerves” your uncle takes for his WhatsApp forwards.
- Livogen– Iron supplements that every doctor prescribes and no patient finishes.
- Nasivion– The nasal spray that works faster than your excuses.
- Seven Seas– The omega-3 brand for those who believe fish oil can solve anything, including relationships.
The company runs aGoa plant(because even vitamins need beach therapy) and sells mostly in India. It earns royalties, pays royalties, and maintains relationships like a Bollywood production house.
Its recent move tooutsource its injections portfolio(effective Sept 2023) is classic P&G efficiency: “Why manufacture when you can manage margins?” It focuses on high-margin OTC (over-the-counter) VMS products while letting someone else handle the messy needles.
Essentially, this business runs on three pillars:
- Brand recallstronger than its competitors’ R&D budgets.
- Marketing musclepowered by P&G’s global toolkit.
- Distribution—from chemists to Amazon, it’s everywhere.
So, in short: it’s less about “drug discovery” and more about “discovery of new ways to sell the same vitamins.”
4. Financials Overview
Quarterly Comparison (Figures in ₹ Crore)
| Metric | Q2FY26 | Q2FY25 | Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 319 | 310 | 339 | +2.9% | -5.9% |
| EBITDA | 120 | 114 | 90 | +5.3% | +33.3% |
| PAT | 89 | 82 | 66 | +8.5% | +34.8% |
| EPS (₹) | 53.3 | 49.6 | 39.9 | +7.5% | +33.7% |
Annualised EPS = 53.3
× 4 =₹213.2→ At ₹6,066,P/E = 28.5x(slightly lower than screener’s trailing 32.8x).
The margins look like a luxury brand’s gross markup. With OPM at 37% and PAT margin north of 27%, this is pharma’s version of a Gucci store—premium and unbothered.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s use three lenses to peek into PGHL’s vitamin-fortified valuation buffet.
(a) P/E Based Method:Annualised EPS = ₹213.2Industry P/E (Pharma avg) ≈ 33xFair Value Range = 25x–35x × ₹213.2 =₹5,330 – ₹7,460
(b) EV/EBITDA Method:EV = ₹9,789 CrEBITDA (FY25-TTM) = ₹415 CrEV/EBITDA = 23.6xIf fair range = 18x–24x, then Fair EV = ₹7,470–₹9,960 Cr→ Equity Value = EV – Debt + Cash ≈ (₹7,470–₹9,960 Cr) – ₹6 Cr + ₹228 Cr =₹7,690–₹10,180 Cr→ Per share (1.66 Cr shares) =₹4,630 – ₹6,130
(c) DCF (Simplified)Assume 10% profit CAGR for 5 years, terminal growth 4%, discount rate 10%.Fair Value ≈₹5,800–₹6,500
🎯 Educational Fair Value Range: ₹5,300 – ₹7,400
Disclaimer: This fair value range is for educational purposes only and not investment advice. Please do your own homework or consult your neighborhood CA before swallowing this capsule of valuation.
6. What’s Cooking – News, Triggers, Drama
The company’s quarter looked calm on the surface but busy under the microscope.
- Leadership Shuffle:In September 2025, CFOLokesh Chandakand HR HeadAnit Singhresigned. ReplacementsShashank Srowthy(CFO & Executive Director) andSanika Gokhale(HR Leader) joined from October 2025. Corporate reshuffles in P&G are like IPL trades—routine but dramatic.
- Operational Shift:PGHL continues to streamline costs byoutsourcing injections manufacturing. Why deal with cold chain headaches when contract manufacturers are just a call away?
- Dividend Generosity:Earlier, in Feb 2024, it declared aninterim dividend of ₹200 per share—because if you can’t beat inflation, at least look generous doing it.
- Awareness Drives:The company remains committed topublic health campaigns, whether it’s anemia awareness or diabetes education. One day a vitamin ad, next day a CSR bus tour—it’s all in a day’s PR.
So while the share
