Themis Medicare Ltd Q2FY26: Revenue Falls, Profits Knocked Out, Yet the API Pulse Beats On

1. At a Glance

If Lord Krishna ever lectured on pharma earnings in theBhagavad Gita, he’d probably tell Themis shareholders, “Karma karo, profit ki chinta mat karo.” Because, honestly, that’s exactly how Q2FY26 went for Themis Medicare Ltd (TML).

At ₹114 per share, the stock is trading 63% below its 52-week high of ₹310, yet it somehow still has a ₹1,045 crore market cap — proving that hope can sometimes defy both gravity and financial statements.

For the quarter endedSeptember 2025, revenue stood at₹77.99 crore, down33.4% YoY, whilePAT nosedived to ₹–3.62 croreversus ₹14.29 crore YoY. That’s aprofit variance of –125%, which sounds less like a percentage and more like a blood pressure reading.

Book value sits at ₹41.3, P/B at 2.75, and dividend yield at a polite 0.45%. Return on equity is a subdued7.65%, and debt levels are at ₹95.6 crore with aDebt-to-Equity ratio of 0.25— healthy, at least in the balance sheet’s ICU ward.

In short: a decent-sized pharma company, currently in an extended clinical trial of profitability.

2. Introduction

Welcome to the Themis Medicare saga — where antiseptics clean wounds, APIs heal economies, and financials need their own prescription.

Founded in 1969, Themis Medicare Ltd is not your usual pharma wannabe. It’s the slightly eccentric but highly educated cousin in the Indian pharmaceutical family — a company that’s been around since Indira Gandhi’s tenure, survived globalization, and now faces quarterly results that feel like a pandemic hangover.

TML operates in formulations and APIs (Active Pharmaceutical Ingredients) — basically the “guts” behind most pills. The company manufactures everything from anti-tuberculosis and anti-malarial drugs to pain management and cholesterol meds. In other words, they’ve got your liver, lungs, and heart all billed in one balance sheet.

But while the products are noble, the numbers are needy. Revenue fell by a third in Q2FY26, operating profit slipped into the red, and margins resembled a deflated IV bag. Yet, this is Themis — the company that’s still exporting to44+ countries, launching new products, and expanding its hospital segment with its Critical Care Division.

So, what happened? Why did a company with three manufacturing facilities, six APIs, and 240 formulations suddenly start bleeding red ink? Let’s roll up our sleeves and disinfect these financials.

3. Business Model – WTF Do They Even Do?

Imagine a doctor’s clinic that also sells medicines, makes those medicines in-house, and sometimes sells the same drugs to other doctors abroad. That’s Themis.

The business has three main organs:

a) Hospital Business:This is the company’s lifeline. The “Critical Care” and “Intensive Care” divisions cater to hospitals through institutional sales — basically pushing anaesthesia, antibiotics, and other critical drugs. They also focus on increasing hospital coverage and doctor engagement.

b) Trade Business:This includes the “Pharma,” “Ortho,” and “Gynecology” divisions. These sell through traditional pharma channels to chemists and distributors — think of this as their street-smart retail side.

c) API Business:The crown jewel. APIs are the chemical ingredients that make drugs work. Themis makes them both for itself and external clients. The API business (around 42% of FY25 revenue) is the most export-heavy segment, supported by a strong R&D pipeline and a few patents up its sleeve.

Together, these segments generated FY25 revenue split as follows:API + Co-Marketing (42%),Hospital (38%), andTrade (20%).

The global plan is also neatly staged:

• Phase I (0–3 years):Expand in RoW markets — CIS, Latin America, and GCC.
• Phase II (3–5 years):Enter regulated markets — the EU and USA.

A noble roadmap, but at the moment, the GPS is showing “Route recalculating.”

4. Financials Overview

Let’s operate on the patient:

Annualized EPS = –₹1.56 →P/E not meaningful(the polite way of saying “please don’t ask”).

The company has gone frompositive operating margins of 14.6%a year ago to–3.9%this quarter. Even EBITDA went from +₹17