Shilpa Medicare shares jump 8% after strong profit growth in Q2FY25

Shilpa Medicare has made waves in the share market investment landscape, with its shares climbing up to 8.45% on Wednesday to reach an intraday high of ₹894.50 on the BSE. This sharp surge follows the company's robust financial performance in the second quarter of FY25, marking a period of significant growth and strong investor interest.

Strong financial performance in Q2FY25

The company's Q2FY25 results reveal a multifold jump in profit, with net earnings of ₹17.9 crore, compared to a modest ₹1.6 crore in the same period last year. Additionally, Shilpa Medicare reported a revenue of ₹344 crore, a 9.8% increase from ₹313 crore in Q2FY24. 

The company's EBITDA stood at ₹86 crore, reflecting a robust 42.7% growth from the previous year's ₹60.3 crore. This improvement pushed the EBITDA margin to 25%, up from 19.3%, underscoring the company's operational efficiency and growing profit potential in the share market investment arena.

Diverse revenue streams driving growth

A closer look at Shilpa Medicare's revenue segments shows that its API segment contributed the most, accounting for 55% of the total revenue at ₹192.8 crore. Formulations made up 34% of the revenue at ₹119.6 crore, while Biologicals contributed 9%, generating ₹30.7 crore. This diversified revenue model has proven advantageous for investors focusing on share market investment, as it highlights Shilpa Medicare's resilience and capability to drive growth across multiple product lines.

In addition to its impressive financials, the company has achieved notable progress in its formulations and CDMO businesses, especially with the acceptance of Oxylanthanum Carbonate NDA by the USFDA and recent approvals for Bortezomib. These developments strengthen the company's positioning and potential for sustainable growth, further enhancing its attractiveness in the share market investment space.

Shilpa Medicare share performance: A market outperformer

Shilpa Medicare shares have consistently outpaced the market, rising by 173% year-to-date and 138% over the past year, while the BSE Sensex recorded gains of 7.7% and 19.8%, respectively, over the same periods. This impressive performance, coupled with a market capitalisation of ₹8,556.70 crore, solidifies its position as a promising option for share market investment.

Key takeaways

• Shilpa Medicare shares surged 8.45% following substantial profit growth in Q2FY25.
• The company's diversified revenue, with strong API and formulation segments, supports its resilient performance in the share market investment sector.
• Year-to-date, Shilpa Medicare has outperformed the market, highlighting its strong growth potential and appeal to investors looking to diversify their share market investments.