Panacea Biotec Ltd (PANACEABIO)
🎯 Key Takeaways
- Panacea Biotec Ltd is in a tentative recovery phase after sustained losses, marked by a return to profitability in Q1 FY2026 with improved segment performance. The company has stabilized its financials post-turnaround efforts, though margins remain thin and volatile.
- Revenue grew 19.7% QoQ to ₹200 in Q1FY27.
- ⚠️ 1) The subsidiary's GST Show Cause Notice for ₹4.06 Crore tax liability, though contested, introduces compliance and potential adjustment risks. 2) On
- Market Cap
- ₹2,253
- P/B Ratio
- 2.70
- ROE
- -0.8%
- ROCE
- -0.5%
- Debt/Equity
- 0.03
- Promoter
- 72.5%
📖 The Story
Panacea Biotec Ltd is in a tentative recovery phase after sustained losses, marked by a return to profitability in Q1 FY2026 with improved segment performance. The company has stabilized its financials post-turnaround efforts, though margins remain thin and volatile. Management is focused on operational consolidation and shareholder engagement ahead of the AGM.
📰 What's Happening
The company approved its Q1 FY2026 financial results showing standalone net profit of ₹139 lakhs versus a prior loss of ₹18 lakhs, with consolidated profit improving to ₹357 lakhs. The board set the 42nd AGM for September 29, 2026, and appointed a scrutinizer for e-voting. Additionally, appeals were filed against Industrial Tribunal awards, and a GST notice was received by a subsidiary regarding ₹4.06 Crore tax liability, which management does not expect to impact operations materially.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 167 | 141 | 165 | 167 | 200 |
| Operating Profit | -10 | -26 | 3 | -5 | -2 |
| OPM % | -5.7% | -18.5% | 2.0% | -3.2% | -1.1% |
| Net Profit | 4 | -14 | 4 | -1 | 2 |
| EPS | ₹0.65 | ₹-2.27 | ₹0.65 | ₹0.08 | ₹0.38 |
Revenue has shown modest growth from ₹141 Cr in September 2025 to ₹200 Cr in June 2026, while profitability has improved significantly — moving from a ₹14 Cr loss in September 2025 to a ₹1.39 Cr net profit in June 2026. Operating performance remains inconsistent, with margins fluctuating between -18.5% and 2.0%, but the recent shift to profitability aligns with management's turnaround narrative and improved segment execution.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance in the latest filings, but the scheduling of the 42nd AGM and approval of Q1 results suggest confidence in ongoing recovery. The board's actions indicate a focus on governance and stakeholder communication, with no disclosed strategic initiatives beyond routine operational oversight at this time.
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 | 807 | 827 | 829 | 820 |
| Borrowings | 22 | 22 | 24 | 23 |
| Total Liabilities | 1,290 | 1,243 | 1,262 | 1,255 |
| Fixed Assets | 586 | 562 | 569 | 549 |
| Investments | 19 | 37 | 10 | 3 |
| Total Assets | 1,290 | 1,243 | 1,262 | 1,255 |
The balance sheet shows stable equity at ₹6 Cr and gradually increasing reserves, while borrowings remain minimal at ₹24 Cr. Total assets have slightly declined, reflecting no major capital expenditures or expansions. This suggests conservative capital allocation, with no aggressive reinvestment or deleveraging signaled in the recent period.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | -27 |
| Investing | +65 |
| Financing | -3 |
| Net Cash Flow | +35 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 72.5% | 72.5% | 72.5% | 72.5% |
| FII | 1.1% | 1.4% | 1.6% | 2.3% |
| DII | 1.8% | 1.9% | 2.0% | 2.3% |
| Public | 17.7% | 17.5% | 16.8% | 15.5% |
| # Shareholders | 33,593 | 34,597 | 32,620 | 33,532 |
Promoter holding remains steady at 72.48%, indicating confidence. However, FII allocation has declined from 2.31% in Q1FY27 to 1.6% in Q4FY26, while DII rose slightly. Public shareholding has increased marginally, but the drop in FII interest may reflect reduced institutional confidence despite improving financials.
⚖️ Peer Comparison — Pharmaceuticals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| SUNPHARMA | 4.41 L Cr | 36.5 | 18.7% | — | 0.05 |
| DIVISLAB | 2.53 L Cr | 86.5 | 23.0% | — | 0.00 |
| TORNTPHARM | 1.85 L Cr | 77.7 | 15.1% | — | 1.76 |
| ZYDUSLIFE | 1.21 L Cr | 27.0 | 16.8% | — | 0.43 |
| CIPLA | 1.12 L Cr | 33.3 | 13.2% | — | 0.01 |
| LAURUSLABS | 1.09 L Cr | 99.3 | 20.8% | — | 0.45 |
| DRREDDY | 1.02 L Cr | 31.6 | 10.1% | — | 0.17 |
| MANKIND | 1.01 L Cr | 49.3 | 13.9% | — | 0.38 |
| AUROPHARMA | 97,814 | 26.6 | 12.8% | — | 0.20 |
| LUPIN | 94,274 | 16.6 | 27.9% | — | 0.26 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) The subsidiary's GST Show Cause Notice for ₹4.06 Crore tax liability, though contested, introduces compliance and potential adjustment risks. 2) Ongoing litigation from Industrial Tribunal awards, despite interim relief, could lead to operational or financial disruptions if unresolved unfavorably. 3) Persistent negative ROE and ROCE highlight structural profitability challenges that may limit investor appeal.
📋 Recent Filings
- 🔴 Announcement2026-09-29Panacea Biotec disclosed two Income Tax demand orders dated September 28, 2026, imposing a combined penalty of **₹4.32 Crore** for alleged income misr…
- Announcement2026-09-26Panacea Biotec announced that its trading window will close on October 1, 2026, for all designated persons until 48 hours after the unaudited quarterl…
- Announcement2026-09-26Panacea Biotec disclosed receipt of four income tax demand orders from Delhi's Assistant Commissioner imposing a combined penalty of approximately ₹9.…
- share transfer2026-09-15Panacea Biotec sent reminder letters to physical shareholders on September 15, 2026, requesting PAN and KYC details to update records and dematerializ…
- Announcement2026-09-07Panacea Biotec disclosed that 6,11,08,526 shares were dematerialized in August 2026 across NSDL and CDSL depositories, reflecting a net increase of 3,…
- 🟡 sustainability report2026-09-07Panacea Biotec Limited voluntarily filed its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, detailing ESG performance across…
- 🔴 annual report2026-09-07Panacea Biotec Ltd's 2025-26 Annual Report details governance updates including a new independent director, AGM scheduled for September 29, 2026 via v…
- 🟡 Board Meeting2026-09-07Panacea Biotec announced its 42nd Annual General Meeting will be held on September 29, 2026, via video conferencing, with shareholders voting remotely…
- 🔴 annual report2026-09-07Panacea Biotec announced that shareholders without registered email addresses will receive a web link to access the Annual Report for FY2025-26 and th…
- 🟡 Board Meeting2026-08-13Panacea Biotec announced its August 13, 2026 board meeting outcome: approval of unaudited standalone and consolidated financial results for Q1 FY2026 …
🧠 Analyst's Read
Panacea Biotec shows early signs of financial recovery with return to profitability and improved segment earnings, but execution risks remain due to thin margins and external regulatory pressures. Investors should monitor upcoming AGM insights and resolution of legal matters for clarity on sustainable momentum.
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 2026-09-29.
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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