In a surprising turnaround, shares of Balaxi Pharmaceuticals witnessed a sharp 10% surge during intraday trading on Friday, November 21, reaching ₹39.5 per share. This impressive gain came despite overall weakness in the broader market indices on Dalal Street.
Long-Term Downtrend Continues
Despite Friday's strong performance, the stock remains under significant pressure when viewed from a longer-term perspective. The stock is still down 11.50% for the month of November and has been experiencing severe selling pressure since May 2024.
The company's shares have shown a consistent pattern of decline, having closed in negative territory for 16 out of the 18 months following May 2024. The most substantial monthly drops occurred in February 2025, when the stock plunged 21.51%, followed by October 2024 with a 16% decline.
Significant Wealth Erosion for Investors
The cumulative effect of these declines has been devastating for shareholder value. Balaxi Pharmaceuticals has lost 47.42% of its market value so far this year, extending previous years' losses of 17% in calendar year 2024 and 29% in calendar year 2023.
This prolonged downturn has resulted in substantial wealth erosion for retail investors, who collectively held 30.5% of the company's shares at the end of the September quarter. Promoters maintain majority control with 66% stake, according to BSE shareholding data.
Weak Quarterly Performance
The company's September quarter results for FY26 revealed concerning financial metrics. Revenue declined 27.4% year-on-year to ₹56.17 crore, while gross profit fell 18.3% to ₹27.14 crore.
Despite the revenue contraction, there was a silver lining as gross margin improved significantly by 540 basis points to 48.3%. However, other profitability measures showed steep declines.
EBITDA plunged 88.9% to ₹1.17 crore, causing EBITDA margin to contract sharply to 2.1% - a drop of 1,158 basis points from the previous year. Profit after tax saw an even more dramatic fall of 95.4% to ₹0.21 crore, with PAT margin slipping to 0.4% from 5.9% in Q2 FY25.
The company's earnings per share also took a massive hit, falling to just ₹0.04 compared with ₹0.84 in the same period last year, reflecting the challenging operational environment Balaxi Pharmaceuticals currently faces.
