Zenith Drugs Limited (ZENITHDRUG)
Snapshot
Zenith Drugs Limited closed at ₹38.20 on 23 Oct 2026, with a P/E of 16.38. In the quarter ended March 2026, revenue grew 40.9% and net profit grew 100.0% from a year earlier. Data as of 23 Oct 2026.
Price
- Market Cap
- ₹66 Cr
Financials23 Oct 2026
- P/E
- 16.38
- P/B
- 0.87
- ROE
- 5.3%
- ROCE
- 9.0%
- Debt to Equity
- 0.73
- OPM
- 7.0%
- YoY qtr sales growth
- 40.9%
- YoY qtr profit growth
- 100.0%
- Dividend Yield
- 0.00%
Latest quarter Mar 2026 · Standalone
Exchange activity23 Oct 2026
- Delivery
- 75.0% vs 88.52% average
- Volume vs its average
- 0.2×
Events
- Latest results
- H2 FY26
- Board meeting filing
- 13 Oct 2026
Exchange data. Each figure as its own page shows it; the dates are the data's. Information only, not investment advice.
📈 Share price & events
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Zenith Drugs' revenue was ₹93.0 Cr (+40.9% year on year, +19.2% on the previous half-year), and net profit ₹2.0 Cr (+100.0% year on year); the operating margin was 6.5%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹93.0 | +40.9% | +19.2% |
| Operating profit | ₹6.0 | -14.3% | +0.0% |
| Net profit | ₹2.0 | +100.0% | +0.0% |
| EPS (₹) | 0.94 | +11.9% | -30.9% |
| Operating margin | 6.5% | — | — |
ZENITHDRUG delivery percentage
NSE end-of-day data for
On Fri, 23 Oct 2026, 75.0% of the ZENITHDRUG shares traded on NSE were taken to delivery, against the stock's own 20-session average of 88.52%. That is lower than usual for this stock. Turnover was only ₹1 lakh, so a handful of trades can move this figure. Volume was 0.2 times its average, well below normal.
Delivery in the last 5 sessions: 76.5% · 100.0% · 75.0% · 100.0% · 75.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Zenith Drugs Limited announced that its Board of Directors approved the sale of land and building measuring 5 hectares at Industrial Park, Mohana, Indore, for a cash consideration of ₹13.75 crore. The transaction is with ACE Engineering & Chemicals Private Limited and is not a related-party deal. The asset contributed 0% to revenue but represents approximately 18.57% of the company's FY26 net worth. The consideration represents ~20% of the current market capitalization (₹69 crore) and will unlock liquidity, with completion expected by November 20, 2026.
- Board approved sale of 5 hectares of land and building for ₹13.75 crore
- Asset contributed 0% to turnover/revenue but represents ~18.57% of audited FY25-26 net worth
- Sale consideration of ₹13.75 crore is ~20% of the company's ₹69 crore market cap
- Buyer is ACE Engineering & Chemicals Private Limited; deal is at arm's length with no promoter affiliation
- Sale Deed execution planned on or before October 20, 2026, with completion by November 20, 2026
Zenith Drugs Limited has received a Letter of Acceptance from Haryana Medical Services Corporation Limited (HMSCL) for supplying Group-B medicines over a 2-year period. The tender (No. 384) covers Cough Syrup bottles (100 ml) at an accepted rate of ₹11.15 per unit inclusive of all taxes. Total volume and aggregate order value were not disclosed in the filing. This reinforces the company's institutional business pipeline, contributing against its TTM revenue base of ₹305 Cr.
- Received Letter of Acceptance from Haryana Medical Services Corporation Limited under Tender No. 384
- Contract duration is for a period of two years
- Supplying Cough Syrup (100 ml bottle) formulation at an accepted rate of ₹11.15 per unit inclusive of taxes
- Total order volume and aggregate contract value not disclosed
Zenith Drugs Limited announced that all resolutions presented at its 26th Annual General Meeting (AGM) held on September 29, 2026, were passed by shareholders with the requisite majority. The company submitted the voting results alongside the Scrutinizer's Report under Regulation 44(3) of SEBI LODR. The meeting was conducted via Video Conferencing/Other Audio-Visual Means. Zenith Drugs operates with a market cap of ₹76 Cr and reported ₹305 Cr in TTM revenue.
- 26th Annual General Meeting held on September 29, 2026
- Meeting conducted at 01:00 PM via Video Conferencing / OAVM
- All resolutions approved by shareholders with requisite majority
- Voting results submitted pursuant to Regulation 44(3) of SEBI LODR
Zenith Drugs Limited released the transcript of its 26th Annual General Meeting held on September 29, 2026. The company highlighted FY26 revenue growth of 28.52% to ₹171.22 crore, though PAT declined to ₹3.94 crore due to higher depreciation from its newly commissioned tablet line. Management reported operational improvements with debt-to-equity reducing to 0.75 and collection periods dropping to 143 days. Strategic plans focus on scaling tablet capacity and entering the chronic therapy segments including Cardio-Diabetes and Neuropsychiatry.
- FY26 revenue increased 28.52% to ₹171.22 crore compared to ₹133.32 crore in the previous year
- EBITDA rose 7.0% to ₹17.26 crore from ₹16.18 crore, while PAT declined to ₹3.94 crore due to ₹3.08 crore higher depreciation
- Working capital improved with collection period dropping to 143 days (from 175 days) and inventory cycle down to 122 days
- Capital work-in-progress increased to ₹9.82 crore from ₹3.10 crore to support entry into chronic therapy segments
Zenith Drugs Limited has issued the notice for its 26th Annual General Meeting scheduled for September 29, 2026. Key special resolutions include enhancing the Board's borrowing powers under Section 180(1)(c) up to Rs 200 Cr (against current debt of Rs 55 Cr). The company is also seeking shareholder approval to revise executive remuneration up to Rs 84.00 lakh per annum each for Managing Director Sandeep Bhardwaj and Executive Director Bhupesh Soni for a 3-year period starting April 1, 2026.
- AGM scheduled for September 29, 2026; cut-off date for e-voting is September 22, 2026
- Special resolution proposed to set borrowing limit under Section 180(1)(c) up to Rs 200.00 Cr
- MD Sandeep Bhardwaj (21.38% stake) remuneration proposed up to Rs 84.00 lakh p.a. (vs Rs 48.00 lakh p.a. last drawn)
- ED Bhupesh Soni (20.18% stake) remuneration proposed up to Rs 84.00 lakh p.a. (vs Rs 67.80 lakh p.a. last drawn)
- Remote e-voting window open from September 26 to September 28, 2026
Zenith Drugs Limited announced the outcome of its board meeting held on September 05, 2026. The board approved the notice for the 26th Annual General Meeting (AGM) scheduled for September 29, 2026, via video conferencing. Additionally, M/s. Agrawal & Maheshwari, Practicing Company Secretaries, was re-appointed as the Secretarial Auditor for FY 2026-27, and Ms. Geetika Agrawal was appointed as the e-voting scrutinizer.
- 26th Annual General Meeting to be held on Tuesday, September 29, 2026, at 01:00 PM via VC/OAVM
- Appointed M/s. Agrawal & Maheshwari as Secretarial Auditor for FY 2026-27
- Ms. Geetika Agrawal appointed as Scrutinizer for the AGM e-voting process
- Board meeting conducted between 12:00 PM and 01:00 PM on September 05, 2026
Zenith Drugs Limited has approved the allotment of 16,09,050 convertible warrants to promoter group members at an issue price of ₹43.50 per warrant, aggregating up to ₹7.00 Cr. The company has received 25% upfront subscription consideration amounting to ₹1.75 Cr (₹1,74,98,421), with the balance 75% payable upon warrant conversion within 18 months. Upon full exercise, the allottees' collective holding will increase from 64.08% to 67.16%. Additionally, Executive Director Ajay Singh Dassundi has been re-designated as a Non-Executive Director effective August 27, 2026.
- Allotted 16,09,050 convertible warrants at ₹43.50 per warrant (FV ₹10 + premium ₹33.50) on preferential basis
- Total issue size of ₹7.00 Cr (~10% of current market cap of ₹70 Cr)
- Received ₹1.75 Cr upfront (25% consideration); balance 75% payable within 18 months
- Allotted equally (5,36,350 warrants each) to 3 promoters: Ajay Singh Dassundi, Sandeep Bhardwaj, and Bhupesh Soni
- Allottees' combined shareholding will rise from 64.08% to 67.16% upon full conversion
Company profilewritten 14 Dec 2025
Financial Performance
Revenue Growth by Segment
The company operates in a single primary business segment (Pharmaceuticals), making segment-wise growth reporting not applicable; however, revenue is described as moderate with a healthy historical compound annual growth rate.
Geographic Revenue Split
Domestic operations contribute the vast majority of revenue, with foreign exchange earnings reported at INR 34.39 Lacs (approximately 0.5% of net worth) for the financial year 2024-25.
Profitability Margins
Net profit for the half-year ended September 30, 2025, was INR 7.16 Cr, compared to INR 9.54 Cr for the full year ended March 31, 2025. Profitability is monitorable with a downward rating factor if it falls below 7%.
EBITDA Margin
Core profitability is supported by an operating profit before working capital changes of INR 7.87 Cr for H1 FY26 and INR 15.89 Cr for FY25; interest coverage is expected to remain adequate at over 3.5 times.
Capital Expenditure
The company has a planned debt-funded capital expenditure of INR 20.00 Cr for the development of a new product line in fiscal 2026, funded through INR 14.00 Cr in term debt and INR 6.00 Cr from internal accruals.
Credit Rating & Borrowing
The company maintains a comfortable financial risk profile with a net worth of INR 62.00 Cr as of March 31, 2024, and interest coverage ratios expected to stay above 3.5 times over the medium term.
Operational Drivers
Capacity Expansion
Planned expansion includes a new product line requiring INR 20.00 Cr investment in fiscal 2026 to increase manufacturing scale and product diversity.
Manufacturing Efficiency
Manufacturing efficiency is supported by a diverse product portfolio and a workforce of 182 permanent employees as of March 31, 2025.
Logistics & Distribution
The company leverages an extensive distribution and sales network built over two decades to market its branded generic drugs and ORS products.
Strategic Growth
Growth Strategy
Growth will be achieved through a INR 20.00 Cr capex plan for new product lines, leveraging the promoters' 20+ years of industry experience, and expanding the branded generic drug portfolio and third-party jobwork manufacturing.
Products & Services
The company manufactures and markets ORS (Oral Rehydration Salts), branded generic drugs, and various pharmaceutical formulations through third-party jobwork and government institutional business.
Brand Portfolio
Zenith Drugs
New Products/Services
A new product line is under development with a planned investment of INR 20.00 Cr scheduled for fiscal 2026.
Market Expansion
Expansion plans target increased reach in branded generics and institutional business, supported by a net worth expected to exceed INR 67.00 Cr by March 31, 2025.
External Factors
Industry Trends
The pharmaceutical industry is evolving with high regulatory oversight from agencies like CDSCO and NPPA, with a trend toward branded generics and institutional supply contracts.
Competitive Landscape
The landscape is characterized by intense competition from large-scale formulation manufacturers with integrated operations.
Competitive Moat
The moat is based on the promoters' 20-year industry experience and established client relationships, which are sustainable but challenged by the lack of R&D investment and intense pricing competition.
Macro Economic Sensitivity
The company is sensitive to regulatory shifts in the pharmaceutical sector and interest rate changes due to its INR 14.00 Cr planned debt for capex.
Regulatory & Governance
Industry Regulations
Operations are strictly governed by the Drugs and Cosmetics Act 1940, Drugs (Prices Control) Order 2013, and the Narcotic Drugs and Psychotropic Substances Act 1985.
Taxation Policy Impact
Current tax expense for the half-year ended September 30, 2025, was INR 2.37 Cr.
Legal Contingencies
The company reported no material weaknesses in internal financial controls; specific values for pending court cases are not disclosed in the provided summaries.
Risk Analysis
Key Uncertainties
The primary uncertainty involves the successful execution and ramp-up of the INR 20.00 Cr debt-funded capex and its impact on the capital structure if revenue growth does not follow.
Third Party Dependencies
The company relies on merchant dealers for exports and third-party jobwork manufacturing for a portion of its revenue.
Technology Obsolescence Risk
The company reported zero R&D expenditure, which may pose a long-term risk of technology or product obsolescence in a fast-evolving medical field.
Credit & Counterparty Risk
Credit risk is managed through internal controls, but the working capital-intensive nature of the business (GCA up to 350 days) remains a monitorable risk factor.
