1. At a Glance
If Ind-Swift Laboratories Ltd were a movie, H1FY26 would be that scene where the lead character walks away from his old toxic habits — in this case,debt, complex API businesses, and underwhelming returns — and decides to glow up with a ₹1,650 crore slump sale detox.
The company, trading at ₹97.5 with amarket cap of ₹796 crore, seems to have pulled off one of the most dramatic transformations in the Indian pharma midcap space. After selling itsAPI and CRAMS business to Synthimed Labs (India Resurgence Fund)in FY24, the company is now debt-free, slimmed down, and gearing up for a new formulation-forward life.
Yet, don’t mistake this for a “perfect turnaround” poster — the numbers are still bumpy.Sales for Q2FY26 (Sep 2025) came in at ₹152.6 crore, up1,176% YoY, andPAT at ₹7.99 crore, amassive 1,849% YoY jump. Sounds impressive? Well, when your base quarter had just ₹11 crore in sales and you were nursing losses, almost anything looks like a gym transformation ad.
Still, the company’sbook value at ₹160versus CMP ₹97.5 gives it a curious 0.61x P/B — a “pharma on clearance sale” situation. Promoters quietly increased their stake to39.5%, FIIs are back with a14.8% holding, and even the auditors must be confused whether to celebrate or brace for another plot twist.
2. Introduction
Ind-Swift Laboratories Ltd (ISLL) is that classic Chandigarh-origin pharma company that’s been through every possible business model — fromAPI hero to CRAMS consultant, and now trying to become aformulation player with Dubai dreams.
Incorporated in 1995, the company built its name manufacturing APIs across cardiovascular, antidiabetic, antipsychotic, antihistamine, and macrolide antibiotic categories. For years, it supplied to regulated markets likeUSFDA, EDQM, PMDA, ANVISA, EU-GMP, and WHO, earning reputation points but not necessarily shareholder returns.
Then came the big detox: in March 2024,Ind-Swift sold its API and CRAMS business for ₹1,650 croreto Synthimed Labs (India Resurgence Fund). Overnight, debt vanished — like an ex after repayment day. With proceeds used to clear loans, the company became almost debt-free (₹22 crore total debt vs ₹1,355 crore a decade ago).
Now, with a clean sheet and a few fresh capex plans (₹20 crore in FY24 for new product capacities), the company’s aiming higher. But can a bulk drug veteran really pivot to formulations and R&D-driven growth? Or is it just a cosmetic rebrand in a highly regulated industry?
We’ll find out. But first, let’s decode what this lab really cooks — apart from those confusing profit swings.
3. Business Model – WTF Do They Even Do?
Ind-Swift Laboratories operates acrossthree pharma dimensions— API manufacturing, CRAMS (Contract Research and Manufacturing Services), and R&D.
Think of it as that overachiever cousin who once tried coding, cricket, and cooking all at once.
- APIs:The company manufactures over 20 bulk drugs, fromAtorvastatintoFexofenadine, with leadership inMacrolide antibiotics. It served global clients with certifications from almost every drug authority known to man.
- CRAMS:This was the B2B money-spinner, offering process R&D, clinical supply manufacturing, analytical development, and regulatory support. Basically, “you invent, we manufacture.”
- R&D and Impurities:Its Dera Bassi R&D facility focuses on developing new process technologies and impurity standards for 25+ APIs — the chemical version of “know your enemy.”
- Geographical Reach:With operations spanning the US, Europe, Japan, and India (exports ~60%), Ind-Swift’s reach was global — though recently, it’s been consolidating.
Post-slump sale, ISLL ispivoting from heavy manufacturing to asset-light models and formulations. It has alsoentered joint venturesfor finished dosages (Indis Healthcare LLP, 50% stake).
It’s also setting up a newDubai subsidiary — Ind-Swift (Dubai) Ltd— perhaps to blend global marketing ambitions with a tax-friendly tan.
But let’s be honest: pharma is not a Bollywood movie. Pivoting from APIs to formulations isn’t just changing costume; it’s rewriting the script.
4. Financials Overview – The Quarter Where Math Took a Red Bull
Shot
| Metric (₹ Cr) | Q2FY26 (Sep 2025) | Q2FY25 (Sep 2024) | Q1FY26 (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 152.64 | 11.96 | 152.73 | 1,176% | 0% |
| EBITDA | 1.47 | -11.80 | 3.60 | 112% | -59% |
| PAT | 7.99 | 0.41 | 8.77 | 1,849% | -9% |
| EPS (₹) | 0.98 | 0.07 | 1.45 | 1,300% | -32% |
Commentary:The YoY explosion in numbers is clearly post-slump-sale clean-up — the company’s financials from last year were practically hibernating. The small QoQ decline hints at normalization. EBITDA margins are still thin at under 2%, but hey, they’re positive again.
When your operating profit goes from“negative infinity”to “slightly above zero,” it’s like celebrating a toddler’s first walk.
Annualised EPS (₹0.98 × 4) =₹3.92, giving aneffective P/E ≈ 24.9x— fairly priced for a pharma rebuilder.
5. Valuation Discussion – Fair Value Range Only
Let’s run the valuation math — no bias, no hype.
(a) P/E Method:TTM EPS = ₹3.92Industry P/E (Peers median) = 31.5→Fair Value Range = ₹90 – ₹120(using 23–31x band)
(b) EV/EBITDA Method:EV = ₹418 Cr; EBITDA (TTM) = ~₹43 Cr (approx. normalized from past quarters)→ EV/EBITDA ≈ 9.7x→ Peer range 10–18x →Fair Value ≈ ₹95 – ₹145
(c) DCF (Simplified, assuming ₹30 Cr PAT steady-state, 10% growth, 12% WACC)→ Present value ≈ ₹850 Cr market cap equivalent→Per share ≈ ₹105 – ₹115
📘Fair Value Range (Educational): ₹90 – ₹120 per shareThis fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Oh boy, where do we begin?
- Merger Mania:In July 2025, NCLT approved themerger of Ind-Swift Ltd with Ind-Swift Laboratories, consolidating promoter interests and simplifying structure.
- Debt Freedom:Post the ₹1,650 crore slump sale,external debt was fully repaid, turning a once-leveraged company into a cash-light entity.
- Preferential Issue:CARE’s Nov 2025 monitoring report highlights₹314.6 crore preferential issue, though with14.37% deviationdue to improper reimbursements — because old habits die hard.
- ISO Certifications:On Nov 21, 2025, ISLL’s export unit baggedISO 14001:2015 and ISO 45001:2018 certifications, signaling compliance credibility.
- Dubai Expansion:The Dubai subsidiary hints
