Sudarshan Pharma Shares Defy Market Trend with Strong Rally
In a remarkable display of resilience, Sudarshan Pharma's small-cap stock has been bucking the broader market trend with consecutive upper circuit hits. On Thursday, February 5, the pharmaceutical company's share price surged to its 10% upper circuit limit of ₹23.10, marking the second straight session of such gains and the third consecutive session of positive movement.
Market Performance Amid Global Concerns
This impressive performance comes despite significant weakness in the Indian stock markets, where both benchmark indices experienced declines. The Sensex and Nifty 50 fell approximately half a percent each, mirroring concerns in global markets about potential disruptions in the technology sector driven by artificial intelligence advancements.
The stock's upward trajectory began with a 5% upper circuit hit at ₹21 on Wednesday, February 4. Over the three-session period, the scrip has advanced more than 17%, demonstrating remarkable momentum against the prevailing market sentiment.
Recent Performance Context and Financial Results
However, this recent rally contrasts sharply with the stock's performance over longer periods. The pharma stock has faced considerable pressure, tumbling over 40% in the last year, 24% in the past six months, 19% in the last three months, and 12% in the past month.
The company's third-quarter financial results for FY26 revealed substantial growth. Net sales increased 16% year-on-year to ₹168.01 crore compared to Q3FY25, while net profit surged 51% to ₹4.36 crore during the same period.
For the nine-month period of FY26, the company reported even stronger performance with net sales climbing 40% to ₹482.14 crore and net profit advancing 67% to ₹12.58 crore compared to the same period in the previous financial year.
Annual Performance and International Expansion
Looking at the full-year performance, Sudarshan Pharma reported net sales of ₹505 crore in FY25, reflecting 9% growth over FY24. Net profit for the year rose 45% to ₹16 crore compared with the previous financial year.
In a significant strategic move, the company has strengthened its international presence through the incorporation of a wholly owned subsidiary in Poland. After receiving board approval in February 2025, Sudarshan Pharma invested PLN 5,000 to acquire a 100% stake in Sudarshan Pharma Company Poland Limited Liability, based in Warsaw.
This expansion initiative is designed to broaden the company's customer reach across European markets. The newly formed subsidiary will focus on manufacturing chemicals, fertilizers, and plastics, along with wholesale distribution of pharmaceutical products. This strategic move is expected to support the parent company's expansion in the global chemical and agrochemical industries.
Company Business Overview
Sudarshan Pharma is primarily engaged in manufacturing Active Pharmaceutical Ingredients (API) and providing jobwork manufacturing services for pharmaceutical items. The company also operates as a trader in chemicals and solvents within India, with a focus on specialty chemicals business operations.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
