At a Glance
Bajaj Healthcare Ltd (BHL) pulled a Bollywood-style comeback: profits soared 51% YoY in Q1 FY26 while sales barely moved the needle at ₹149 Cr. But the CFO resigned faster than a Netflix cancellation. The company flaunts global API exports but hides under low ROE, high debtor days, and a promoter stake that’s been quietly slimming.
Introduction
Picture a cricket team winning a match because the opponent bowled themselves out. That’s Bajaj Healthcare’s quarter. Sales stuck in neutral (+12.5% YoY), yet net profit flexed ₹12 Cr thanks to cost control. With a market cap of ₹1,671 Cr, a P/E of 35.5, and export links to 62 countries, BHL is like that underrated indie film that gets noticed—just before the producer quits.
Business Model (WTF Do They Even Do?)
BHL makes APIs, amino acids, and formulations for pharma, nutraceuticals, and food sectors. They supply to 550+ clients across 62 countries. Think of them as the backstage crew of the global drug concert—vital but rarely headlining. The recent Genrx Pharma acquisition adds to their CDMO swagger, but execution risk remains.
Financials Overview
- Revenue (Q1 FY26): ₹149 Cr (+12.5% YoY)
- Net Profit: ₹12 Cr (+51.7% YoY)
- OPM: 16% (better than last quarter’s 8%)
- ROE: 11.5% (yawn)
- Debt: ₹223 Cr (down from ₹333 Cr in FY24)
Verdict: Numbers improved but still whisper “work in progress.”
Valuation
- P/E: 35.5×
- EV/EBITDA: ~18× (estimated)
- Fair Value Range: ₹400–₹600
DCF mutters ₹400, market screams ₹530. Somebody’s high on optimism.
What’s Cooking – News, Triggers, Drama
- CFO resigned in April 2025.
- Whole-time director quit in June 2025.
- New CDMO contracts with UK/EU players signed in Dec 2024.
- DCGI nod for Pimavanserin & SEC nod for Phase III trials—big for pipeline.
- Promoter holding dropped to 59.2% from 67.7% in a year.
Drama level: Daily soap with surprise plot twists.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 898 | 765 | 833 |
| Liabilities | 543 | 500 | 383 |
| Net Worth | 368 | 279 | 466 |
| Borrowings | 415 | 333 | 223 |
Commentary: Debt is coughing, not drowning.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | -22 | 92 | 22 |
| Investing | -93 | -11 | -15 |
| Financing | 131 | -97 | -6 |
Punchline: Cash flows behave like a freelancer—erratic but occasionally loaded.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 12% | -30% | 12% |
| ROCE % | 14% | 8% | 11% |
| P/E | 33× | 40× | 35.5× |
| PAT Margin % | 7% | -15% | 8% |
| D/E | 1.2 | 1.1 | 0.5 |
Verdict: Ratios are recovering—like a hangover after black coffee.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 646 | 473 | 543 |
| EBITDA | 112 | 76 | 82 |
| PAT | 43 | -84 | 40 |
Commentary: Topline’s jogging, bottom line’s back from the dead.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Sun Pharma | 52,578 | 2,390 | 35.7 |
| Divi’s Labs | 9,360 | 662 | 79.8 |
| Cipla | 27,811 | 1,292 | 23.6 |
| Torrent Pharma | 11,835 | 548 | 60.7 |
| Bajaj Healthcare | 559 | 44 | 35.5 |
Humour: The least drunk guest at a pharma party full of billionaires.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 59.2% (down from 67.7%)
- FIIs: 1.09%
- DIIs: 3.16%
- Public: 36.5%
Promoters trimmed their stake—maybe to fund their Netflix subscription, or maybe something bigger.
EduInvesting Verdict™
Bajaj Healthcare is recovering but not yet sprinting. Margins improved, debt fell, and new contracts are exciting. But promoter stake cuts and management exits raise eyebrows.
Final Word: A decent pit stop, but don’t expect business class legroom.
Written by EduInvesting Team | 28 July 2025
SEO Tags: Bajaj Healthcare, API Manufacturer, Pharma Stocks, CDMO India
