Shilpa Medicare Ltd Q2FY26 – The Oncology Oracle, Biosimilar Boss, and Filmstar Pharma that’s Flirting with a 29% OPM

1. At a Glance

If karma existed in the stock market, Shilpa Medicare would’ve been reborn as an API monk — eternally churning molecules and penance for low ROE. Yet, here it stands, with a ₹7,097 crore market cap and a 29% operating margin, trying to find moksha between oncology APIs and biologics.

The latest Q2FY26 (Sep 2025) numbers were juicy — revenue ₹370 crore (up 7.6% YoY), and PAT ₹44.1 crore, which is146% higherthan last year’s ₹18 crore. The EPS, now ₹2.25 per share, makes the annualized EPS ₹9.00. But before you start daydreaming, remember the P/E is a Himalayan 45.9x. As the Bhagavad Gita says,“Karmanye vadhikaraste ma phaleshu kadachana”— do your research, not your random buying.

Over the past 3 months, the stock is down ~15%, but the product pipeline and biologics push have investors still hooked. With launches like NorUDCA, Pemetrexed, and NODUCA™, the company is scripting its own desi Marvel Universe — with APIs as superheroes and Biosimilars as spinoffs.

2. Introduction

Once upon a pharma cycle, when everyone was copying paracetamol, Shilpa decided to get nerdy with oncology and biologics. Incorporated in 1987, it’s that kid in class who didn’t just mug up formulas — theymadethem.

Today, Shilpa’s portfolio looks like a biotech buffet: oncology APIs, oral thin films, biosimilars, CDMO services, and a fresh dose of R&D ambition. The business operates through its main company (SML) and the wholly owned Shilpa Therapeutics, which pioneeredoral thin filmsin India. Basically, they took your “disintegrating tablets” dream and made it Bollywood-level dramatic.

But let’s not forget — despite all that scientific swag, the return metrics are… well, let’s just say they’re still in Phase II of recovery trials. ROE? 4.21%. ROCE? 7.82%. It’s like an IIT topper who can’t yet afford rent in Bengaluru.

And yet — biologics, biosimilars, and innovative drug delivery platforms are the future. Shilpa seems determined to become India’s next global contract powerhouse. Just… maybe don’t check the stock chart before lunch.

3. Business Model – WTF Do They Even Do?

In simple words:Shilpa manufactures drugs for when life gets really serious.

The business operates across 3 verticals:

• APIs (68% of revenue)– Primarily oncology, pain management, and niche segments. The company has 19 API blocks and exports to the US, Europe, Japan, and 40+ countries. Think of it as India’s molecular export machine.
• Formulations (29%)– Solid or injectable dosage forms and oral dissolving films (ODF). This is where Shilpa gets creative — imagine popping an orodispersible film instead of a pill. They even have transdermal patch capabilities.
• Others (3%)– Contract development and manufacturing services (CDMO) and new-age biotech projects.

Add to this the biologics arm —Shilpa Biologics Pvt Ltd, which has 11 biosimilars and one new biological entity in the works. Recently, it partnered with Orion Corporation (Finland) to commercialize recombinant Human Albumin in Europe.

In short, this isn’t a generic medicine company. It’s amolecule factory with PhD ambitions.They’re playing in the oncology and biologics playgrounds, not the vitamin supplement sandpit.

4. Financials Overview

Annualised EPS = ₹9.0 ⇒ P/E = 40.3x (approx).Interpretation:“Earnings may fluctuate, but enthusiasm remains overdosed.”

Operating margins at 29% show efficiency, but PAT margins (~12%) remind us that R&D dreams aren’t cheap. The QoQ dip in profit is just the pharma version of a mild side effect