Nectar Lifesciences posts Q3 FY25 PAT at Rs. 7.84 Cr
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Nectar Lifesciences posts Q3 FY25 PAT at Rs. 7.84 Cr

Revenue from Operations for Q3 FY25 was Rs. 454.33 crore,

  • By IPP Bureau | February 03, 2025

Nectar Lifesciences delivered consistent growth in its financial performance for Q3 FY25 compared to previous quarters and the same period last year. The company continues to strengthen its market presence through strategic expansions and operational efficiencies.

Revenue from Operations for Q3 FY25 was Rs. 454.33 crore, a marginal increase from Rs. 452.16 crore in Q3 FY24 and an improvement from Rs. 427.88 crore in Q2 FY25.

EBITDA stood at Rs. 45.28 crore, reflecting an increase from Rs. 42.67 crore in Q3 FY24 and Rs. 44.02 crore in Q2 FY25. The EBITDA margin stood at 9.97%, improving from 9.44% in Q3 FY24, though slightly lower than 10.29% in Q2 FY25.

Profit After Tax (PAT) came in at Rs. 7.84 crore, marking a substantial growth from Rs. 1.56 crore in Q3 FY24 and Rs. 5.59 crore in Q2 FY25. The PAT margin improved to 1.73%, up from 0.35% in Q3 FY24 and 1.31% in Q2 FY25.

Nectar Lifesciences is strategically positioning ourselves for increased market penetration, focusing on expanding presence in higher-margin API and formulations export markets to drive profitability. The company is actively pursuing debt reduction initiatives, which will lower interest costs and enhance financial health.

To meet growing demand, the management plans incremental capital expenditure to strengthen production capabilities. Additionally, ongoing cost optimization measures and process efficiencies are expected to sustain profitability and drive shareholder value. Management anticipates a 100-150 bps expansion in EBITDA margins annually, supported by a rising share of API exports and formulations.

For FY25, EBITDA is projected at Rs. 175-185 crore. Revenue growth of 7-10% is expected in FY26, leading to an estimated EBITDA of Rs. 240-260 crore. The management is focused on the formulations business and aims to scale sales from this business to Rs. 600 crore+ by FY28.

By the end of FY26, long-term debt is expected to be fully repaid, significantly reducing interest costs and further enhancing profitability at the PAT level.

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