Lactose (India) Ltd (524202)
🎯 Key Takeaways
- Lactose (India) Ltd is a mid-sized pharmaceutical company operating in a mature segment of the healthcare industry, with stable but modest growth indicators. The company shows consistent profitability metrics but faces pressure from flat revenue trends and limited reinvestment capacity.
- Revenue grew 2.6% QoQ to ₹47 in Q1FY27.
- ⚠️ 1) Limited revenue growth in a competitive pharmaceutical market raises concerns about long-term top-line expansion. 2) Low institutional interest may
- Market Cap
- ₹132
- P/E Ratio
- 19.1
- P/B Ratio
- 2.04
- ROE
- 10.7%
- ROCE
- 11.9%
- Debt/Equity
- 0.96
- Promoter
- 53.6%
📖 The Story
Lactose (India) Ltd is a mid-sized pharmaceutical company operating in a mature segment of the healthcare industry, with stable but modest growth indicators. The company shows consistent profitability metrics but faces pressure from flat revenue trends and limited reinvestment capacity. It is in a consolidation and efficiency phase, focusing on operational discipline rather than aggressive expansion.
📰 What's Happening
In Q1FY27, the company reported revenue of ₹47 crore with operating profit of ₹4 crore and an OPM of 9.4%, reflecting incremental margin improvement from ₹37 crore revenue and 4.5% OPM in Dec 2025. Management has not announced new capacity expansions or product launches in recent filings, suggesting focus on optimizing existing operations. There are no indications of M&A activity or strategic divestments in the latest regulatory disclosures.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 41 | 37 | 46 | 47 |
| Operating Profit | 4 | 2 | 4 | 4 |
| OPM % | 9.3% | 4.5% | 7.7% | 9.4% |
| Net Profit | 2 | 1 | 2 | 2 |
| EPS | ₹1.71 | ₹0.42 | ₹1.49 | ₹1.88 |
Revenue has plateaued over the last four quarters, hovering between ₹37–47 crore, while operating margins have shown gradual improvement from 4.5% to 9.4%, indicating better cost control or pricing power. Net profit and EPS have risen steadily from ₹1 crore (EPS ₹0.42) in Dec 2025 to ₹2 crore (EPS ₹1.88) in Jun 2026, suggesting operating leverage is beginning to benefit the bottom line despite flat top-line growth.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance in the latest filing, but the sequential improvement in margins and profitability suggests confidence in sustaining current performance levels. No commentary on demand revival or new growth drivers was included in the recent results announcement.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 13 | 13 | 13 | 13 |
| Reserves | 40 | 39 | 52 | 50 |
| Borrowings | 56 | 46 | 62 | 54 |
| Total Liabilities | 133 | 113 | 183 | 138 |
| Fixed Assets | 52 | 53 | 69 | 56 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 133 | 113 | 183 | 138 |
The balance sheet shows a stable capital structure with equity remaining flat at ₹13 crore while reserves have grown from ₹40 to ₹52 crore over two years, indicating retained earnings are being reinvested internally. Borrowings have slightly declined from ₹56 to ₹54 crore, and total assets have increased modestly, reflecting asset base stability without aggressive leverage or disinvestment.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | -0 |
| Investing | -16 |
| Financing | +19 |
| Net Cash Flow | +3 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 53.6% | 53.6% | 53.6% | 53.6% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.6% | 0.6% | 0.6% | 0.6% |
| Public | 38.1% | 38.1% | 38.2% | 38.3% |
| # Shareholders | 16,810 | 16,770 | 16,670 | 16,554 |
Promoter holding remains unchanged at 53.65% over the last five quarters, with no FII or significant institutional accumulation observed. DII ownership is minimal at 0.62%, and the slight decline in public shareholding percentage may reflect passive index rebalancing rather than active exit. The growing number of shareholder accounts suggests retail participation is slowly increasing.
⚖️ Peer Comparison — Pharmaceuticals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| SUNPHARMA | 4.46 L Cr | 36.9 | 18.7% | — | 0.05 |
| DIVISLAB | 2.52 L Cr | 86.0 | 23.0% | — | 0.00 |
| TORNTPHARM | 1.87 L Cr | 78.4 | 15.1% | — | 1.76 |
| ZYDUSLIFE | 1.19 L Cr | 26.6 | 16.8% | — | 0.43 |
| CIPLA | 1.12 L Cr | 33.1 | 13.2% | — | 0.01 |
| LAURUSLABS | 1.07 L Cr | 98.0 | 20.8% | — | 0.45 |
| MANKIND | 1.05 L Cr | 51.4 | 13.9% | — | 0.38 |
| DRREDDY | 1.04 L Cr | 32.3 | 10.1% | — | 0.17 |
| AUROPHARMA | 97,987 | 26.6 | 12.8% | — | 0.20 |
| LUPIN | 94,190 | 16.6 | 27.9% | — | 0.26 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Limited revenue growth in a competitive pharmaceutical market raises concerns about long-term top-line expansion. 2) Low institutional interest may reflect perceived lack of scalability or visibility into future growth catalysts. 3) High promoter pledging or regulatory scrutiny on pharma exports — though not currently flagged — remains a latent risk given sector dynamics.
📋 Recent Filings
- 🟡 Board Meeting2026-09-30Lactose (India) Ltd held its 35th AGM on 30 September 2026 via video conference, approving audited financial statements, reappointing directors, incre…
- 🔴 Announcement2026-09-30Lactose (India) Ltd announced the appointment of Alpesh A. Lakeshri as its new Cost Auditor for FY 2026-27 following shareholder approval at a meeting…
- Announcement2026-09-29Lactose (India) Ltd announced that its trading window closes on 1st October 2026 following the release of un-audited quarterly results for September 2…
- 🟡 Board Meeting2026-09-07Lactose (India) Limited announced its 35th Annual General Meeting (AGM) to be held on Wednesday, 30 September 2026, via video conferencing, with book …
- 🔴 annual report2026-09-07Lactose (India) Limited reported a net profit of **[amount context mismatch] lakhs** for FY 2025-26, up from **₹516.29 lakhs** in the previous year, d…
- 🟡 Board Meeting2026-09-07Lactose (India) Limited announced its 35th Annual General Meeting (AGM) to be held on Wednesday, 30 September 2026 at 12:00 noon via video conferencin…
- 🔴 Corporate Action2026-09-05Lactose (India) Ltd announced that the National Company Law Tribunal approved the scheme of amalgamation with Vitanosh Ingredients Private Limited eff…
- 🔴 Corporate Action2026-09-05Lactose (India) Ltd announced the effective date of September 5, 2026 for the approved Scheme of Amalgamation with Vitanosh Ingredients Private Limite…
🧠 Analyst's Read
Lactose (India) is demonstrating incremental profitability gains from a stable revenue base, but lacks clear growth triggers. Investors should monitor for signs of new product launches, export order wins, or margin sustainability in upcoming quarters to assess whether current improvements are structural or cyclical.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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