Choksi Laboratories Ltd Q2 FY2025 – When Your Lab Report Has More Drama Than Your Portfolio
1. At a Glance
When a company’s latest quarterly profit jumps 200%, it’s not a miracle—it’s usually accounting mixed with caffeine. Choksi Laboratories Ltd (BSE: 526546), the Indore-based contract testing specialist, recently declared its September 2025 quarter (Q2 FY25) results, and let’s just say the lab pipettes are bubbling with numbers.
At ₹116/share, this ₹80.9 crore microcap trades at a lofty P/E of 48.8x, but don’t worry, its ROE of 6.63% will bring you gently back to earth. Revenue for Q2FY25 came in at ₹11.12 crore, while PAT clocked ₹0.24 crore, marking a 200% jump over last year’s forgettable numbers. Yet, over the past 3 months, the stock has fallen 44.6%, because even markets know — high P/E with slow growth is like paying for a Ferrari that drives like an Alto.
Debt remains at ₹28.9 crore, translating into a 1.18 debt-to-equity ratio. Meanwhile, the ROCE of 9.2% suggests they’re earning about as much as a savings account after tax. Still, for a company recovering from a cyber-attack in FY25, this feels like a positive retest result — in the lab, not the clinic.
2. Introduction
Choksi Laboratories is not your regular “chemical lab next door” story. Founded in 1982, this Indore-based testing major grew from a small analytical outfit into a multi-service testing hub covering everything from pharma and food analysis to clinical research and calibration services.
If India has to test it — be it your cough syrup, groundwater, or that shady snack from the railway station — chances are, someone at Choksi has already poked, weighed, and spectrophotometered it.
The company operates at the intersection of regulatory science and real-world chaos. Its clientele list includes the likes of IPCA Labs, Nicholas Piramal, Serum Institute, and Cummins India, showing that even giants occasionally outsource their homework.
Yet, despite handling over a thousand clients, Choksi’s financial journey resembles a chromatography experiment — clear peaks followed by mysterious drops. It makes profits, never pays dividends, and then drops hints of “expansion” like a Bollywood trailer that never releases the movie.
But don’t mistake its silence for inaction — it’s recently been in the news for system disruptions caused by a cyber-attack. Ironically, the company that tests other people’s systems had to issue a statement clarifying that its own systems were being debugged. Classic.
3. Business Model – WTF Do They Even Do?
Think of Choksi Laboratories as India’s lab partner for everyone who can’t afford to fail practical exams.
They specialize in contract testing and analytical services across sectors that constantly need validation — pharma, food, construction materials, environment, and even clinical trials.
Their service portfolio looks like this:
Contract Laboratory Services (CLS) – They test your tablets, sample your snacks, and check if your construction material will survive the monsoon.
Instrument Calibration & Validation – For everyone who thought calibration was a setting on your TV, this is serious stuff. Choksi ensures that measuring devices in factories, plants, and labs don’t lie.
Environmental Management Services – They monitor waste disposal, air quality, and water management for industries. In short: they check if your factory is ruining someone’s neighbourhood.
Clinical Research – A 40-bed bioavailability and bioequivalence research facility means they literally test how your body reacts to drugs. Yes, even legit ones.
Consultancy & Training – Helping others set up compliant labs while maintaining their own. Because why not make money from teaching your competitors too?
Assaying & Hallmarking – If you’re wearing gold that doesn’t turn green, thank someone like Choksi Labs.
So yes, they’re basically the ICMR of the private sector, just with more billing cycles and less political interference.
4. Financials Overview
Quarter Locked: Q2 FY2025
Source table
Metric
Latest Qtr (Sep 2025)
YoY Qtr (Sep 2024)
Prev Qtr (Jun 2025)
YoY %
QoQ %
Revenue
₹11.12 Cr
₹9.26 Cr
₹11.24 Cr
20.1%
-1.1%
EBITDA
₹2.93 Cr
₹2.36 Cr
₹2.90 Cr
24.1%
1.0%
PAT
₹0.24 Cr
₹0.08 Cr
₹0.39 Cr
200%
-38.5%
EPS (₹)
0.34
0.11
0.56
209%
-39%
Operating margins continue to hover near 26%, showing stable efficiency even though net profit margins (just over 2%) remain wafer-thin — like the layer of gold they hallmark.
The real comic twist? Despite a 20% sales rise, profits barely make it to half a crore. If cash flow was a movie, Choksi’s would be called “Labouratory: The Marginal Returns”.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch some numbers before they crunch ours.
TTM EPS = ₹2.38
Current P/E = 48.8
Industry P/E (Diagnostics peers) ≈ 27.8
So, if Choksi were valued like its larger diagnostic cousins:
Fair P/E Range: 25x – 35x Fair Value Range: ₹59 – ₹83 per share
Using EV/EBITDA (9.18x) and industry median (around 15x), it appears slightly undervalued on enterprise metrics but overvalued on earnings.
A quick DCF (based on historical 10% profit CAGR, discount rate 12%) lands us roughly around ₹70–90, assuming zero blackouts, no cyber drama, and steady growth in calibration income.
⚠️ This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
FY25 started like a tech thriller for Choksi Labs. In May 2025, a cyber-attack hit their systems, delaying audited results. Thankfully, the company clarified that “core business operations remained unaffected,” meaning the lab work continued even if Excel didn’t.
By June 2025, Brickwork Ratings reaffirmed its credit rating, implying that lenders still believed their instruments
