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Beta Drugs Ltd
NSE: BETA INE351Y01019 Healthcare Pharma 🔎 Screen
₹1,410 Cr
Market Cap
34.0
P/E
3.48
PEG
19.2%
ROCE
18.8%
ROE
0.60
D/E
19.3%
OPM
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Ratio Health
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About

Beta Drugs Ltd is engaged in manufacturing of a wide range of oncology (anti-cancer) drugs in India. It has operations in the domestic and export markets.

✓ Strengths

No strengths data yet.

! Concerns 1
  • Though the company is reporting repeated profits, it is not paying out dividend
Key Ratios Snapshot
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Mixed quarter: Revenue grew to ₹385 Cr with margin improvement, but elevated debt and missed export tenders temper the outlook. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹385 Cr
Sum of segments: Branded ₹140 Cr, CMO ₹149 Cr, Exports ₹71 Cr, Others ₹25 Cr
EBITDA Margin
22.57%
Expanded 147bps from 21.10% in FY25
Debt-to-Equity
0.63
Up from 0.10 in FY24; borrowings at ₹147.8 Cr
What Went Right
  • EBITDA margin improved to 22.57% from 21.10% in FY25, driven by cost efficiencies.
  • Branded oncology segment grew to ₹123 Cr (up from ₹33 Cr in FY21), with 7 brands exceeding ₹5 Cr each.
  • Dermatology revenue surged 35% YoY to ₹16.6 Cr, achieving monthly breakeven in FY26.
  • API sales increased 24% YoY to ₹24.8 Cr, supporting backward integration and margin expansion.
  • Nivian revenue grew 23% to ₹43 Cr (from ₹35 Cr in FY25), with presence in 15 states/UTs.
What to Watch
  • Debt ballooned to ₹147.8 Cr from ₹11 Cr in FY24, driving debt-to-equity to 0.63 — a significant leverage increase.
  • CDMO revenue of ₹149 Cr appears flat; management only guides a modest 5-7% CAGR going forward.
  • Export growth was hampered by missed tenders, which management deferred to H1 FY27 execution.
  • Dermatology achieved only monthly breakeven, not full-year profitability, with no new sales force additions.
  • EBITDA margin at 22.6% remains low compared to larger peers, despite improvement.
Management Guidance
  • FY27 expected to be a watershed year for commercialization of registrations.
  • CDMO business expected to grow at sustainable 5-7% CAGR.
  • Missed tenders to be executed in H1 FY27.
  • Derma tracking to average monthly sales of ₹1.4 Cr.
Investor Lens
Beta Drugs is executing a strategic pivot from a branded oncology focus toward a CDMO/export-heavy model (Beta Vision 2030). Revenue reached ₹385 Cr with 147bps margin improvement, but the balance sheet is now leveraged (debt-to-equity 0.63) after borrowing ₹136 Cr in FY25-26 for backward integration and capacity expansion. Branded segment remains strong at 36% of revenue but is expected to shrink to 28% by FY30. Export growth is key but delayed by missed tenders; H1 FY27 execution will be a litmus test. Nivian's IVF revenue grew 23% to ₹43 Cr — promising but still negligible versus total. CDMO growth at 5-7% is steady but underwhelming. The transformation thesis is intact but hinges on debt reduction and export commercialization. Watch next quarter for tender execution, CDMO order wins, and any reversal in leverage trends.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue flat at ₹94Cr, PAT ₹9.1Cr, margins steady.
Revenue
Revenue for Mar 2026 quarter was ₹94.0Cr, nearly flat YoY (0.2% growth). Sequentially, revenue grew 7.7% from Dec 2025, indicating a recovery in the quarter.
Profitability
Net profit was ₹9.1Cr, up 0.2% YoY and 6.2% QoQ. EPS stood at ₹8.93, marginally lower than ₹8.95 in the same quarter last year.
Margins
Operating profit margin was 18.82%, compared to 18.50% YoY and 19.46% QoQ. The slight YoY improvement was offset by a sequential dip, likely due to cost pressures.
Cash Flow
Cash flow data not provided in the report.
Balance Sheet
Borrowings stood at ₹148Cr against reserves of ₹235Cr, resulting in a D/E ratio of 0.66. Total assets were ₹496Cr.
Key Risks
Revenue growth is stagnant YoY, indicating possible demand slowdown. High borrowings of ₹148Cr could pressure margins if interest rates rise. EPS is flat, and PE at 34.1 suggests elevated expectations.
Outlook
Sequential growth in revenue and profit is encouraging, but maintaining this trend is crucial. The company needs to accelerate top-line growth to justify its current valuation.
Generated by AI · Mar 2026 results · Not investment advice
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