Makers Laboratories Ltd (MAKERSL)
🎯 Key Takeaways
- Makers Laboratories Ltd is a mid-sized pharmaceutical company operating in a mature segment of the healthcare industry, with stable financial metrics and improving profitability trends. The company demonstrates strong returns on capital (ROCE 20.
- Revenue grew 19.6% QoQ to ₹43 in Q1FY27.
- ⚠️ The company's profitability is highly sensitive to margin fluctuations, as seen in the sharp drop from 8.5% OPM in Dec 2025 to 3.4% in Sep 2025, which
📖 The Story
Makers Laboratories Ltd is a mid-sized pharmaceutical company operating in a mature segment of the healthcare industry, with stable financial metrics and improving profitability trends. The company demonstrates strong returns on capital (ROCE 20.9%) and conservative leverage (D/E 0.07), suggesting disciplined capital management. Recent credit rating reaffirmation supports financial stability, while promoter holding remains steady at 61.27%. The business appears to be in a consolidation and incremental growth phase rather than aggressive expansion.
📰 What's Happening
In the latest quarter (Jun 2026), the company reported revenue of ₹43 crore with operating profit of ₹6 crore (OPM 13.6%), up from ₹36 crore revenue and ₹4 crore operating profit in Mar 2026 (OPM 11.6%). Management has not announced new capacity expansions or product launches in recent filings, but consistent sequential improvement in margins suggests operational efficiency gains. The company reaffirmed its BBB+ credit rating in September 2026, indicating stable banking relationships and no immediate financing stress. There have been no material changes in management or strategic direction disclosed in the latest regulatory filings.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 35 | 34 | 36 | 36 | 43 |
| Operating Profit | 2 | 1 | 3 | 4 | 6 |
| OPM % | 5.4% | 3.4% | 8.5% | 11.6% | 13.6% |
| Net Profit | 1 | 1 | 2 | 4 | 5 |
| EPS | ₹0.74 | ₹-0.20 | ₹1.59 | ₹1.85 | ₹2.55 |
Operating performance has shown steady improvement over the past four quarters, with revenue growing from ₹34 crore (Sep 2025) to ₹43 crore (Jun 2026) and operating margins expanding from 3.4% to 13.6%. Net profit rose from ₹1 crore to ₹5 crore over the same period, turning positive EPS of ₹2.55 in the latest quarter. This upward trajectory aligns with management's focus on operational discipline rather than top-line acceleration, suggesting profitability is being prioritized over aggressive sales growth.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or margin expectations in the latest filings. However, the consistent improvement in operating metrics and reaffirmation of credit rating suggest confidence in current financial trajectories. The absence of new strategic announcements indicates a focus on sustaining existing momentum rather than pursuing transformative initiatives.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 6 | 6 | 6 | 6 |
| Reserves | 60 | 65 | 65 | 67 |
| Borrowings | 15 | 5 | 8 | 5 |
| Total Liabilities | 154 | 148 | 157 | 167 |
| Fixed Assets | 83 | 73 | 71 | 71 |
| Investments | 0 | 0 | 3 | 12 |
| Total Assets | 154 | 148 | 157 | 167 |
The balance sheet shows stable equity levels (₹6 crore) with modest growth in reserves (₹65–67 crore) and minimal borrowings (₹5–8 crore), reflecting a conservative capital structure. Total assets have grown steadily from ₹148 crore to ₹167 crore over two years, primarily driven by operational scale rather than debt-funded investments. There is no evidence of large-scale capital expenditure or strategic M&A activity in recent periods.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +14 |
| Investing | -15 |
| Financing | +0 |
| Net Cash Flow | -0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 61.3% | 61.3% | 61.3% | 61.3% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.4% | 0.4% | 0.4% | 0.4% |
| Public | 31.0% | 31.2% | 31.5% | 31.7% |
| # Shareholders | 4,026 | 3,926 | 3,801 | 3,745 |
Promoter holding remains unchanged at 61.27% across all recent quarters, indicating no dilution or stake sales. Institutional ownership is negligible (FII 0%, DII 0.39%), with broad public shareholding and a growing number of shareholders (3,745 to 4,026). No insider selling or significant investor activism has been disclosed, suggesting limited external pressure or interest.
⚖️ Peer Comparison — Pharmaceuticals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| SUNPHARMA | 4.63 L Cr | 38.3 | 18.7% | 14.6% | 0.05 |
| DIVISLAB | 2.43 L Cr | 83.2 | 23.0% | 17.4% | 0.00 |
| TORNTPHARM | 1.89 L Cr | 79.1 | 15.1% | 25.7% | 1.76 |
| ZYDUSLIFE | 1.16 L Cr | 25.9 | 16.8% | 16.6% | 0.43 |
| CIPLA | 1.15 L Cr | 34.0 | 13.2% | 9.8% | 0.01 |
| LAURUSLABS | 1.00 L Cr | 91.8 | 20.8% | 20.6% | 0.45 |
| LUPIN | 98,305 | 17.4 | 27.9% | 24.7% | 0.26 |
| DRREDDY | 97,741 | 30.3 | 10.1% | 8.4% | 0.17 |
| MANKIND | 97,467 | 47.7 | 13.9% | 12.7% | 0.38 |
| AUROPHARMA | 96,836 | 26.3 | 12.8% | 9.8% | 0.20 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
The company's profitability is highly sensitive to margin fluctuations, as seen in the sharp drop from 8.5% OPM in Dec 2025 to 3.4% in Sep 2025, which coincided with a loss-making quarter. While margins have recovered, this volatility poses execution risk. Additionally, the pharmaceutical sector faces regulatory and pricing pressures, and the company's narrow product focus may limit resilience to demand shifts in key therapeutic areas.
🧠 Analyst's Read
Makers Laboratories demonstrates steady operational improvement within a stable financial framework, supported by strong returns and low leverage. Investors should monitor margin sustainability and any shifts in strategic direction, particularly around product diversification or export expansion, as next catalysts for re-rating.
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 2026-09-02.
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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