Par Drugs & Chemicals Ltd Q2 FY26 Results: ₹28.65 Cr Sales, ₹4.13 Cr PAT, and a ₹95 Cr Slump Sale Plot Twist That Would Make Ekta Kapoor Proud

1. At a Glance

If you thought pharmaceutical companies were boring, Par Drugs & Chemicals Ltd (PAR) just proved otherwise by turning its financial year into a full-blown corporate soap opera. In Q2 FY26, the Bhavnagar-based API and fine chemicals manufacturer reported sales of ₹28.65 crore and a PAT of ₹4.13 crore—a neat rebound from the previous quarter’s ₹26.05 crore revenue and ₹3.33 crore profit. But hold that applause, because the bigger twist came off the balance sheet. The company has approved a ₹95 crore slump sale of its pharma manufacturing business to its related party, Phal-Jig Fine Chemicals Pvt Ltd, while also changing its corporate DNA to now include—wait for it—real estate, renewable energy, and capital markets.

That’s right, this antacid-maker is now chasing solar power, property, and stock trading. From treating acidity to chasing volatility—it’s diversification, Par-style.

With a market cap of ₹108 crore, stock P/E of 11.1x, and ROCE at 18.4%, Par Drugs looks numerically solid, but the 61.5% share price drop over the past year suggests investors might be digesting more acid than antacids.

2. Introduction

Welcome to Par Drugs & Chemicals Ltd—a company that once specialized in neutralizing acids and now seems determined to cause heartburn among its investors.

Founded in 1982, Par was your textbook pharma chemicals manufacturer—steady, small-cap, and debt-free, quietly exporting its magnesium-based molecules to 16 countries. It wasn’t a flashy stock, but it was reliable. Then came FY25, and the management dropped a plot twist worthy of an OTT series: “We’re selling our pharma unit for ₹95 crore to a related party and moving into real estate, capital markets, and renewable energy.”

The SEBI gods were not amused. A SEBI interim order in September 2025 froze the transaction pending a fairness valuation. NSE even appointed Bansi S. Mehta Valuers LLP to assess the deal. The market reaction? Think of an ECG during a panic attack—sharp spikes, deep falls, and a whole lot of confusion.

Yet, despite the drama, Q2 FY26 results show that Par’s core operations still breathe—sales at ₹28.65 crore and PAT ₹4.13 crore, with an EBITDA margin of 21.14%. The numbers whisper stability, but the new business plans scream risk.

3. Business Model – WTF Do They Even Do?

Well, that’s the million-rupee question, isn’t it?

Till recently, Par Drugs made Active Pharmaceutical Ingredients (APIs) and Fine Chemicals, with a particular obsession for antacid molecules—the stuff that neutralizes stomach acid. Their products were the unsung heroes behind tablets you pop after a spicy thali.

The company’s lineup included magnesium hydroxide, magnesium carbonate, sucralfate, and aluminium hydroxide gels—fancy names that basically say “we make stomach calm-down chemicals.”

They supplied giants like Pfizer, Cipla, and United Phosphorus, which sounds prestigious until you remember they contributed just ₹98 crore in annual sales in FY25—a respectable figure, but small fry in pharma’s ₹10,000 crore dinner table.

Now, post the slump sale, Par wants to enter renewable energy, real estate, and capital markets. So yes, the same company that sold chemicals to treat acidity now wants to trade equities that cause acidity.

At this point, even the company’s own antacids might not calm its investors’ nerves.

4. Financials Overview

Let’s digest Q2 FY26 numbers before the next corporate twist.

Despite the slump sale drama, Par still runs a functioning operation, posting sequential improvement. Margins remain a yo-yo—OPM at 21.14%, way better