Wanbury Ltd (WANBURY)
🎯 Key Takeaways
- Wanbury Ltd is in a transitional phase marked by near-term margin pressure from input cost inflation, but positioned for medium-term recovery driven by strategic refinancing, regulatory approvals, and leadership continuity. The company demonstrates strong profitability metrics historically (ROE 80.
- Revenue declined 5.1% QoQ to ₹163 in Q1FY26.
- ⚠️ Persistent input cost inflation in West Asia continues to pressure gross margins, with no immediate relief anticipated before Q2FY2
- Market Cap
- ₹775
- P/E Ratio
- 16.9
- P/B Ratio
- 14.56
- ROE
- 80.7%
- ROCE
- 34.9%
- Debt/Equity
- 3.25
- Promoter
- 43.0%
📖 The Story
Wanbury Ltd is in a transitional phase marked by near-term margin pressure from input cost inflation, but positioned for medium-term recovery driven by strategic refinancing, regulatory approvals, and leadership continuity. The company demonstrates strong profitability metrics historically (ROE 80.7%, ROCE 34.9%), but recent quarters show significant compression in margins and profitability, with net profit margin collapsing from 83% to 20% YoY. Management expects margin recovery from Q2FY27 as cost pressures ease and new product launches scale, supported by debt refinancing that has reduced finance costs below 10% annually.
📰 What's Happening
In Q1 FY27 (filed August 11, 2026), Wanbury reported 1.5% YoY revenue growth to ₹165.6 crores but a 76% YoY decline in net profit to ₹3.2 crores, driven by gross margin contraction from 54% to 52.5% and EBITDA margin compression to 10% from 15.2%. The company refinanced debt to reduce borrowing costs below 10% annually and secured regulatory approvals for new APIs in Australia and Korea. Concurrently, the Board reappointed Whole-time Director Mohan Kumar Rayana for five years effective August 21, 2026, subject to shareholder approval, ensuring leadership continuity. Additionally, 27,530 ESOP shares were allotted, increasing paid-up capital and reflecting employee confidence, though this dilutes existing shareholders' stakes.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 |
|---|---|---|---|---|
| Revenue | 161 | 133 | 172 | 163 |
| Operating Profit | 17 | 11 | 26 | 21 |
| OPM % | 10.3% | 8.0% | 15.3% | 12.8% |
| Net Profit | 8 | 1 | 20 | 13 |
| EPS | ₹2.44 | ₹0.38 | ₹6.18 | ₹4.12 |
The financial trajectory shows a sharp deterioration in profitability over the last four quarters, with net profit plummeting from ₹20 crores in March 2025 to ₹3.2 crores in June 2026 (Q1 FY27), while revenue growth remains flat. Operating margins declined from 15.3% in March 2025 to 10% in June 2026, and gross margins contracted from 54% to 52.5% YoY, directly linked to rising raw material costs in West Asia. However, management attributes the recovery to refinancing-related cost reductions and commercial scaling of newly approved APIs from Q2FY27 onward, which aligns with the annual report's focus on API expansion and new product launches like C-RED.
🔮 Management Outlook & What's Next
Management expects full margin recovery from Q2FY27, citing easing input cost pressures and the commercial rollout of new APIs in Australia and Korea. Finance costs are projected to decline further due to successful debt refinancing below 10% annually. The company did not provide specific revenue or profit guidance in the latest filing, but emphasized that profitability should improve as scale and regulatory approvals translate into commercial demand. The reappointment of Mohan Kumar Rayana for five years (2026–2031) with Rs 3 crore fixed remuneration and up to 4% performance-linked bonus underscores confidence in execution continuity.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2024 | Mar 2024 | Mar 2025 | Mar 2025 |
|---|---|---|---|---|
| Equity Capital | 33 | 33 | 33 | 33 |
| Reserves | -5 | -55 | 21 | 6 |
| Borrowings | 116 | 113 | 173 | 181 |
| Total Liabilities | 343 | 346 | 414 | 397 |
| Fixed Assets | 167 | 167 | 201 | 165 |
| Investments | 0 | 0 | 0 | 2 |
| Total Assets | 343 | 346 | 414 | 397 |
The balance sheet shows a significant increase in equity and reserves, rising from ₹33 crores + ₹-5 crores in March 2024 to ₹33 crores + ₹21 crores in March 2025, indicating strong retained earnings growth despite recent profit declines. Borrowings have risen from ₹116 crores to ₹181 crores over the same period, but refinancing has reduced finance costs below 10% annually. Total assets grew from ₹343 crores to ₹414 crores, reflecting asset base expansion. The company maintains a high debt-to-equity ratio of 3.25, suggesting aggressive capital structure leverage, but refinancing activity and retained earnings support solvency amid operational volatility.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +26 |
| Investing | -51 |
| Financing | +26 |
| Net Cash Flow | +1 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 43.1% | 43.1% | 43.0% | 43.0% |
| FII | 0.8% | 0.7% | 0.6% | 0.9% |
| DII | 0.0% | 0.0% | 0.0% | 0.1% |
| Public | 41.2% | 41.3% | 42.2% | 41.9% |
| # Shareholders | 17,717 | 17,261 | 16,732 | 17,174 |
Promoter holding remains stable at 43.02% across recent quarters, indicating no dilution or stake sale. However, Foreign Institutional Investor (FII) holding has declined from 0.89% in Q1FY27 to 0.59% in Q4FY26, while Domestic Institutional Investor (DII) holding remains negligible at 0.06%. The number of shareholders has slightly decreased from 17,717 in Q2FY26 to 17,174 in Q1FY27, suggesting reduced retail participation. No significant institutional accumulation is evident, but there is no large-scale exit either. The reappointment of a key director and regulatory compliance efforts may appeal to long-term institutional investors focused on governance.
⚖️ 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. Persistent input cost inflation in West Asia continues to pressure gross margins, with no immediate relief anticipated before Q2FY27. 2. Regulatory approval timelines for new APIs in Australia and Korea remain uncertain and could delay revenue contribution. 3. High debt levels (D/E of 3.25) and refinancing dependency expose the company to interest rate and covenant risks. 4. ESOP dilution and lack of dividend payout may deter income-focused investors, while weak FII/DII interest suggests limited institutional confidence in near-term recovery.
📋 Recent Filings
- Announcement2026-09-29Wanbury Ltd announced the closure of its insider trading window effective October 1, 2026, covering directors, key personnel, promoters, and connected…
- 🟡 Board Meeting2026-09-24Wanbury Limited announced at its 38th Annual General Meeting on September 24, 2026, the appointment of ABK & Associates as cost auditor for FY 2026-27…
- 🟡 Board Meeting2026-09-24Wanbury Ltd held its 38th AGM on September 24, 2026, approving audited FY2026 financials, reappointing directors K. Chandran and Mohan Kumar Rayana, a…
- 🟡 Board Meeting2026-08-31Wanbury Ltd announced that its 38th Annual General Meeting will be held on 24 September 2026 via video conference, with the register of members closed…
- 🔴 annual report2026-08-31Wanbury Ltd's 2025-26 Annual Report shows revenue of ₹65,120.54 lakhs and net profit of ₹6,613.47 lakhs, with no dividends recommended. The AGM on 24 …
- 🔴 annual report2026-08-31Wanbury Ltd's 2025-26 Annual Report and 38th AGM notice highlight a 10.7% net profit of [amount context mismatch] crores, no dividend, re-appointment …
- Announcement2026-08-13Wanbury Limited announced EDQM approval for Rivaroxaban API and USFDA DMF clearances for Paraxetine HCI and Metformin HCI, enabling EU market access a…
- 🔴 Financial Results2026-08-11Wanbury Limited announced the reappointment of Mohan Kumar Rayana as Whole-time Director effective August 21, 2026, following board approval of his fi…
- 🔴 Financial Results2026-08-11Wanbury Limited reported Q1 FY27 revenue of **₹165.6 crores**, up 1.5% YoY from ₹163.2 crores in Q1 FY26, but net profit fell sharply to **₹3.2 crores…
- 🔴 Corporate Action2026-08-11Wanbury Limited announced the allotment of 27,530 equity shares to eligible employees who exercised vested options under its ESOP 2016, increasing the…
🧠 Analyst's Read
Wanbury Ltd is navigating a challenging phase with compressed margins and profitability, but management's strategic actions — including debt refinancing, regulatory approvals, and leadership continuity — lay the groundwork for a potential margin recovery from Q2FY27. Investors should monitor execution of new product launches and cost normalization trends, as near-term financial performance remains volatile.
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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