Sudarshan Pharma Shares Rally 4% Following Strong Quarterly Performance
Shares of Sudarshan Pharma witnessed a significant uptick during Thursday's trading session on January 29, closing with a nearly 4% surge at ₹20.25 per share. This positive movement came as investors responded favorably to the company's robust financial performance in the December quarter, demonstrating renewed confidence in the pharmaceutical firm's growth trajectory.
Impressive Q3 Financial Results
The company announced its third-quarter results for FY26 during market hours, revealing substantial year-over-year improvements across key financial metrics. For Q3FY26, Sudarshan Pharma reported revenue of ₹168 crore, marking a significant 37% increase from ₹115 crore recorded in the same quarter of the previous fiscal year. This substantial revenue growth highlights the company's expanding market presence and operational effectiveness.
On the profitability front, the company's EBITDA (profit before finance cost, depreciation, and tax) for Q3FY26 stood at approximately ₹10.87 crore, compared to ₹7.97 crore in Q3FY25. The bottom line showed even more impressive growth, with net profit reaching ₹4.15 crore in Q3FY26, representing a substantial 44% year-over-year increase from ₹2.88 crore in the corresponding period last year.
Nine-Month Performance Highlights
The company's strong performance extended beyond the third quarter, with equally impressive results for the nine-month period ending December 31, 2025. For 9MFY26, revenue rose to ₹467.69 crore from ₹340.93 crore in 9MFY25, maintaining the same 37% growth rate observed in the quarterly results.
EBITDA for the nine-month period reached approximately ₹31 crore, up from ₹23 crore in the same period last year. Most notably, net profit for 9MFY26 surged to ₹12 crore from ₹7.55 crore in the previous year, representing an impressive 56% increase. This substantial profit growth reflects not only revenue expansion but also improved operational efficiency and cost management strategies implemented by the company.
Stock Performance Context
The recent share price surge comes against a backdrop of challenging market conditions for Sudarshan Pharma. The company's shares have faced significant selling pressure throughout January, declining approximately 27.40% so far this month, marking the stock's largest monthly drop since February 2025. Earlier this month, the stock touched its lowest level since September 2024, adding context to the recent recovery.
Despite recent volatility, the company ended 2025 with a substantial decline of 38.21%. However, it's important to note that while short-term trends appear weak, the long-term performance remains strong, with the stock showing gains of 165% from earlier levels, indicating underlying strength in the company's fundamentals.
Company Business Overview
Sudarshan Pharma operates primarily in the pharmaceutical manufacturing sector, specializing in API (Active Pharmaceutical Ingredient) production and jobwork manufacturing for pharmaceutical items. Additionally, the company engages in trading chemicals and solvents across India, positioning itself as a significant player in the specialty chemicals business. This diversified business model contributes to the company's resilience and growth potential in the competitive pharmaceutical industry.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions, as market conditions can change rapidly and individual financial circumstances vary significantly.
