01 — At a Glance
A Pharma Company That Suddenly Remembered It’s Pharma
- 52-Week High / Low₹876 / ₹440
- Q3 Revenue (₹ Cr)175
- 9M Revenue (₹ Cr)474
- FY25 Full Year Revenue398 Cr
- 9M PAT (₹ Cr)84
- Book Value (Sept 2025)₹177
- Price to Book4.18x
- Debt / Equity0.30x
- EPS (9M FY26)₹22.05
- PEG Ratio0.12
Auditor’s Note: Senores Pharma closed Q3 FY26 (Dec 2025) with ₹175 crore revenue (+64% YoY), ₹34 crore PAT (+105% YoY), and a consolidated EBITDA margin of 30.9%. The company is trading at 33.6x P/E — which is spicy for an ANDA factory — but the concall transcript reads like a CEO who just discovered compound growth and has decided to deliver it at 100 km/hr. Three product launches per quarter. Apnar Pharma acquisition at ₹91 crore. 46 FDA-approved products. And management saying “FY26 guidance of 50% revenue growth and 100% PAT growth is very much on track.” Translation: brace yourself.
02 — Introduction
Welcome to the Pharmaceutical Version of a Speedrun
Senores Pharmaceuticals listed on the NSE in December 2024 at ₹755/share. Not glamorous. Not a household name. But a company that makes antibiotics, antivirals, injectables, and over 300 complex generic drugs for the US, Canada, UK, and emerging markets. The kind of company that your doctor never names, but your insurance quietly depends on.
The business is split four ways: Regulated Markets (think FDA-approved facilities selling to the West), Emerging Markets (building distribution in 40+ countries), API Manufacturing (the raw materials your tabletes are made from), and a tiny but growing Branded Generic business in India. Nine months into FY26, the consolidated entity is doing a credible job at looking like it knows what it’s doing.
Q3 brought the highest-ever quarterly revenue. The 9-month PAT growth is 100%+ versus last year. The company just acquired Apnar Pharma — a US FDA and MHRA-approved manufacturing facility — for ₹91 crore (with debt assumption). Management reiterated “very much on track” for 50% top-line and 100% bottom-line growth guidance. The stock is up 18.6% in one year. It’s also trading at 33.6x forward P/E and a PEG ratio of 0.12, which means the market is either pricing in a decade of compounding or has collectively lost its mind. Let’s find out which one is true.
Concall Snapshot (Jan 26, 2026): “Highest-ever quarterly revenue, EBITDA, and PAT in the emerging markets segment.” Management is treating every concall like a highlight reel. And they’re not wrong — the execution is real.
03 — Business Model: WTF Do They Even Do?
The Unsexy Art of Making Pills That Save Lives
Senores operates four parallel businesses, each with its own margin profile, customer base, and growth trajectory. Think of it as pharmaceutical pizza — one slice is regulation-heavy margins, another is volume-driven margins, another is raw material sales, and the last slice is the scrappy distribution play. Glamorous? No. Profitable? Increasingly, yes.
1. Regulated Markets (65% of Q1FY26 revenue) — The ATM
A US FDA-approved facility in Atlanta making oral solids. 1.2 billion tablets per year capacity (expanding to 2 billion by FY27). The company manufactures both its own ANDA products and takes in contract manufacturing work (CDMO/CMO) for clients like Prasco, Lannett, Jubilant, and Sun Pharma USA. Own products carry ~45% gross margins. CDMO carries ~40%. The math is simple: more own products = better margins. Current mix is ~55% own / ~45% CDMO. Target: 65%/35% by FY27.
2. Emerging Markets (21% of Q1FY26 revenue) — The Turnaround Story
A WHO-GMP facility in Ahmedabad (Chhatral) making formulations for 40+ countries. Registered in 308 products, 719 applications filed. This segment was historically margin-compressed and chaotic. Now? Management says Q3 saw EBITDA margins trending toward “mid-teens” and expects “18–20% to stabilize by FY27.” That’s a complete flip. Per-unit revenue improved to “close to ₹2 per unit,” and management reckons it will keep climbing with each new approval commercialized. Why? Because emerging markets were registering products but not selling them. Now they are.
3. API Business (14% of portfolio, tiny in revenue) — The Foundation
Active Pharmaceutical Ingredients. The raw stuff. A facility in Naroda with 16 commercialized APIs serving the domestic market and SAARC. Not discussed in detail on concalls, which usually means it’s either dead weight or just ticking along. Management’s vibe: it exists.
4. Branded Generic (Growing but small) — The Speedrun
Critical care injectables sold through distributors in India. Q3 FY26 revenue ~₹10.5 crore (+6x YoY). Management guidance: ₹40–50 crore for full FY26. Next year “could be another ₹80+ crores.” In a market that grows 3–4%, this is aggressive. Either they’re brilliantly distributing, or someone is very optimistic. Probably both.
The Flywheel: As per concall: “Product portfolio expansion. Prudent channel selection. Differentiated go-to-market.” Translation: buy ANDAs from struggling pharma companies, integrate them into your manufacturing, launch them within 6–8 quarters, rinse, repeat. The Apnar acquisition is the most literal version of this playbook yet — a ready-made FDA facility with 5 approved ANDAs waiting to launch.
💬 If you’re investing in Senores, are you buying the growth story or betting that management executes without diluting shareholders? Drop your thesis in the comments!
04 — Financials Overview
Q3 FY26: The Revenue Printer Goes Brrr
Result type: Quarterly Results | Q3 FY26 EPS: ₹6.87 (reported), Annualised EPS (Q3×4): ₹27.48 | 9M FY26 Cumulative EPS: ₹22.05
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 175 | 107 | 162 | +64.0% | +7.9% |
| Operating Profit (EBITDA) | 54 | 29 | 50 | +86.0% | +8.0% |
| EBITDA % | 31% | 27% | 31% | +360 bps | +30 bps (approx) |
| PAT (after MI) | 34 | 16.5 | 30 | +105.0% | +13.0% |
| EPS (₹) | 6.87 | 3.35 | 6.05 | +105.0% | +13.6% |
The Narrative: Every single metric went up in both QoQ and YoY terms. Revenue +64% YoY is the headline. EBITDA margin expanding 360 basis points is the story nobody talks about but should. The company printed ₹34 crore PAT in a single quarter — that’s 85% of what they earned in all of FY25 (₹58 crore). Annualised EPS from Q3 alone is ₹27.48, vs. CMP ₹739. The P/E calculation shows 33.6x on trailing 9M EPS. But if Q4 is “equally strong or a little stronger,” per management, then FY26 might end at ₹100+ crore PAT on ~₹700+ crore revenue. Your homework: recalculate the P/E assuming that happens.
05 — Valuation: Fair Value Range
Is ₹739 Worth It? Or Are We Pricing 2032 Today?
Method 1: P/E Based (Historical Earnings)
TTM revenue: ₹589 Cr. TTM PAT: ₹102 Cr. TTM EPS: ₹22.05. Pharma sector median P/E ~27.2x. Senores trading at 33.58x. If we assume normalized growth moderates to 20–25% annually, justified P/E band: 28x–36x.
Range: ₹617 – ₹794
Method 2: EV/EBITDA Based (Q4 Estimates)
TTM EBITDA (est): ₹157 Cr. Current EV: ₹3,450 Cr → EV/EBITDA = 21.9x. Pharma CDMO/CMO peers trade 16x–24x. If we assume Senores deserves 18x–22x on FY27E EBITDA growth, with FY27E EBITDA ~₹220 Cr (40% growth assumption):
EV range (18x–22x): ₹3,960 Cr – ₹4,840 Cr → Per share:
Range: ₹642 – ₹786
Method 3: DCF / Forward Assumptions
Base FCF (9M): ~₹51 Cr. Annualized: ~₹68 Cr (OCF improved meaningfully per mgmt). Growth: 35% for 2 years, then 20% for next 3 years, then 5% terminal. WACC: 12% (higher risk due to debt and execution).
→ PV of 5-year FCFs at 12%: ~₹380 Cr
→ Terminal Value (5% growth / 7% cap rate): ~₹1,720 Cr
→ Total EV: ~₹2,100 Cr (near-term debt drag)
Range: ₹680 – ₹850
Fair Min: ₹617
CMP: ₹739
Fair Max: ₹850
CMP ₹739
⚠️ EduInvesting Fair Value Range: ₹617 – ₹850. CMP ₹739 sits in the middle of the range, closer to the lower bound. The valuations hinge on execution of FY26 guidance and sustained margin expansion in Q4. This fair value range is for educational purposes only and is not investment advice. Please consult a SEBI-registered investment advisor before making any financial decision.
06 — What’s Cooking: News, Triggers & Drama
The Plot Thickens (Or Thins, Depending on Your Worldview)
