1.At a Glance

Marksans Pharma is a formulation-focused pharma company with a strong OTC tilt — 74% of FY24 revenue comes from over-the-counter products and 26% from prescription (Rx) drugs. It serves multiple therapeutic areas — pain, cough & cold, digestive, vitamins, skin, cardiovascular, CNS, anti-allergy, and oncology. Despite delivering26% profit CAGR over 5 yearsand holding₹711 Cr in cash, the stock is down ~5% in a year and trades at a P/E of 24.2.

2.Introduction

Founded with a focus on formulations rather than raw APIs, Marksans carved out a niche in branded and generic OTC products. The strategy has worked in terms of profitability but leaves it vulnerable to retail demand swings in key export markets like the US, UK, and Australia.

The company’s growth over the last 5 years has been impressive, but the Q1 FY26 numbers show a sales slowdown (-11% QoQ), reminding investors that even cash-rich pharma businesses can face temporary prescription refills.

3.Business Model (WTF Do They Even Do?)

Marksans is all aboutformulation manufacturing:

• OTC (74%)– Vitamins, digestive aids, cough & cold, skin treatments.
• Rx (26%)– Chronic therapies like CNS, cardiovascular, oncology, anti-diabetic.
• Geographies– Major exports to regulated markets (US FDA, UK MHRA approvals in place).
• Distribution– Mix of branded generics and private label supply to large retailers/pharmacy chains.

4.Financials