💊 CMP: ₹281.00 | 🔼 Up 1.22% | NSE: WANBURY | BSE: 524212
🧠 At a Glance
Wanbury Ltd, a mid-cap pharma player you’ve probably ignored, just dropped a stunner of a quarter.
- PAT up 154% YoY
- EBITDA up 65%
- Revenue up 23%
- Debt refinanced from 21% to 12.5%
- Two new products launched
- Zero-observation Brazil FDA (ANVISA) clearance
All while juggling a 40-day plant shutdown for upgrades.
Forget your usual pharma darlings. Wanbury is operating in stealth mode — cleaning up, scaling up, and paying off toxic debt.
🏭 About the Company
- 👨🔬 Founded in 1988, HQ in Navi Mumbai
- 📦 Two Plants: Tanuku (Andhra) + Patalganga (Maharashtra)
- 🌍 Export Footprint: 50+ countries
- 🧪 Focus Areas:
- APIs (Metformin, Sertraline, Tramadol, etc.)
- Branded Generics in Gynae, Ortho, GI, Nutraceuticals
- 🏥 Clients: Major Indian and global generics players
- 👨⚕️ Recent Leadership Additions:
- Rashesh Patel (Corporate Director – India Formulations)
- Two new Independent Directors onboard
📊 Q4 FY25 Performance (Consolidated)
| Metric | Q4 FY25 | Q4 FY24 | YoY | Q3 FY25 | QoQ |
|---|---|---|---|---|---|
| 💰 Revenue | ₹172.0 Cr | ₹139.8 Cr | 🔼 23% | ₹133.5 Cr | 🔼 29% |
| 🧮 EBITDA | ₹31.5 Cr | ₹19.1 Cr | 🔼 65% | ₹14.8 Cr | 🔼 113% |
| 📈 EBITDA Margin | 18.3% | 13.7% | 🔼 +464 bps | 11.1% | 🔼 +721 bps |
| 💹 PAT | ₹20.3 Cr | ₹8.0 Cr* | 🔼 154% | ₹1.2 Cr | 🔼 1592% |
| 🧾 PAT Margin | 11.8% | 5.72% | 🔼 +608 bps | 0.9% | 🔼 +1090 bps |
*Q4FY24 PAT adjusted to exclude ₹25.5 Cr non-cash exceptional item
📅 FY25 Full-Year Summary
| Metric | FY25 | FY24 | Growth |
|---|---|---|---|
| Revenue | ₹599.5 Cr | ₹577.7 Cr | 🔼 4% |
| EBITDA | ₹79.8 Cr | ₹73.0 Cr | 🔼 9% |
| PAT | ₹30.5 Cr | ₹30.4 Cr* | Flat |
| EBITDA Margin | 13.3% | 12.6% | 🔼 68 bps |
🛠️ 40-day planned plant shutdown dragged annual figures — but Q4 signals a clean rebound.
🧾 Major Highlights
🔁 Debt Refinancing Masterstroke
- Wanbury replaced its ₹95 Cr loan at 21% interest with:
- ₹175 Cr in NCDs from Emerging India Credit Fund (Investec)
- New interest: 12.5% (from 21%!)
- Maturity: 5 years | Moratorium: 9 months
📉 Cost saving = ₹8–10 Cr annually in interest
💡 New Product Launches
- Wanbury C-RED (Formulations)
- Iron supplement targeting gynae segment
- Builds on legacy brand C Pink
- Targets pregnancy-related anaemia
- Ketamine Hydrochloride (API)
- Anaesthesia agent for surgeries
- Huge 200-ton market (human + vet)
- Developed in-house, regulatory-compliant for USP & EP
🧠 Both products offer high-margin and differentiated opportunities
🇧🇷 Brazil’s ANVISA Inspection: ZERO Observations
- Tanuku API unit inspected Dec 2024
- Zero 483s = green light for expansion into LATAM markets
- Strengthens position in regulatory-heavy geographies
🌐 Digital Transformation Underway
- SAP S/4 HANA Cloud rollout initiated
- Targeted for H1 FY26 completion
- Will integrate:
- Finance
- Production
- Quality
- Compliance
- Materials Mgmt.
💻 Expect higher agility, audit readiness, and real-time reporting
📈 EduInvesting Take
Wanbury is doing everything right. Quietly.
- ✅ Repaid high-cost debt
- ✅ Modernized plants
- ✅ Added niche APIs
- ✅ Clean regulatory profile
- ✅ Tech upgrade for future scalability
- ✅ Lean and focused on execution
Yet the stock is trading below ₹300.
It’s the kind of pharma stock that makes a case not through hype — but through actual operational turnaround.
📉 Risks to Watch
- 🔄 Still recovering from FY25 shutdown impact
- 🌍 API pricing volatility
- 🔬 Regulatory risk (future USFDA inspections)
- 💊 Dependence on a few high-volume APIs
- 👨⚕️ Branded generics = crowded market with pricing pressure
📊 Valuation Snapshot
| Metric | Value |
|---|---|
| CMP | ₹281.00 |
| TTM EPS | ₹14.55 |
| P/E | ~19.3x |
| Sector P/E | ~28–30x (Midcap Pharma) |
| Book Value | ₹120+ (Est.) |
📌 Room for rerating as ROCE and net margins improve over FY26.
🔮 What to Expect in FY26
- 🚀 Launch of 3 new APIs
- 🧪 Formulation portfolio expansion under new director
- 🔁 Full-year impact of Tanuku upgrades
- 📉 Interest cost savings show up in full-year P&L
- 🇧🇷 Revenue traction from Brazil and LATAM markets
📣 Final Word
“Wanbury is not just deleveraging. It’s reloading.”
This is a company that has endured bad loans, slow growth, and regulatory pressure. But now, with a refreshed product pipeline, lower debt, and operational momentum, it’s shaping up as a smallcap pharma dark horse.
Don’t say we didn’t tell you.
Author: Prashant Marathe
Date: May 29, 2025
Tags: Wanbury Ltd, Q4 FY25 results, API manufacturing, pharma turnaround, debt refinancing, ketamine API, ANVISA approval, smallcap pharma, EduInvesting stock analysis
