Windlas Biotech Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹912.60−₹10.90 (−1.18%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Windlas Biotech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Windlas Biotech Limited, a contract development and manufacturing organization, manufactures and trades in pharmaceutical products in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,385

Annual revenue₹898 Cr

How does it make money?

Turns over ₹898 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,385 employees supports ₹64.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹64.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +76% while net margin moved -11% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+76%

Margin effect-11%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.2x

3Y Median

29.7x

40 monthly readings · mean 30.0x · range 17.0x–42.0x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 29.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Fair

29.7x median over 40 months · -2%

vs. sector peers

Fair

33.3x median of 4 peers · -12%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.8x

PEG

1.83

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 606% over 3 years, from ₹5 Cr to ₹35 Cr.
🔴High leverageFinancial
Debt/Equity of 6.07x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.07x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 20.7% CAGR
Latest reported year was 18.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹37 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,883 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹31.26

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

15.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.07x

High

High leverage

Revenue Growth (YoY)

18.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.2%

Falling

Profits are shrinking

Dividend Yield

0.69%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹37 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.8%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1032.3 / 1021.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

10.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹511 Cr	₹629 Cr	₹755 Cr	₹898 Cr	+20.7%
EBITDA	₹65 Cr	₹81 Cr	₹97 Cr	₹108 Cr	+18.7%
EBITDA Margin	12.7%	12.9%	12.9%	12.0%	—
PAT (Net Profit)	₹43 Cr	₹58 Cr	₹61 Cr	₹66 Cr	+16.0%
EPS	₹19.7	₹27.88	₹28.87	₹31.15	+16.5%
ROE	10.6%	12.9%	12.1%	11.4%	—
ROCE	14.2%	17.2%	16.5%	15.7%	—
Total Debt	₹5 Cr	₹4 Cr	₹33 Cr	₹35 Cr	+91.8%
Free Cash Flow	-₹10 Cr	₹71 Cr	₹16 Cr	₹37 Cr	—

🟢 Revenue has grown at 20.7% a year over 3 years.

🟢 EBITDA has grown at 18.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.0% over 3 years.

🟢 PAT (Net Profit) has grown at 16.0% a year over 3 years.

🟢 EPS has grown at 16.5% a year over 3 years.

🟡 ROE has held roughly flat at 11.4% over 3 years.

🟢 ROCE has risen from 14.2% to 15.7% over 3 years (+1.5 pts).

🔴 Total Debt has grown at 91.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹37 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹907 Cr

Total Liabilities

₹327 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹105 Cr

Capex

-₹68 Cr

Shareholding (proxy)

Institutional Holding

7.2%

Insider Holding

66.2%

Corporate Actions

Dividend Rate

₹6.3

Ex-Dividend Date

16 Jul 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

2 positive1 mixed1 negative2 general

Windlas Biotech Share Price Target 2027 to 2030: Analyst Outlook

Univest, 14 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Windlas Biotech (WINDLAS.NS) Slips to ₹1011 as Shares Test Key Support Zone - Factor Momentum

https://www.siam.in/, 05 Oct

Be Sure To Check Out Windlas Biotech Limited (NSE:WINDLAS) Before It Goes Ex-Dividend

Simply Wall Street, 12 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Windlas Biotech announces Rs 47 crore buyback at Rs 1,000/share; sets April 24 as record date

The Economic Times, 17 AprCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Windlas Biotech Limited Schedules Virtual Investor Meeting for April 20, 2026

scanx.trade, 20 Apr

Windlas Biotech standalone net profit declines 0.11% in the June 2026 quarter

Business Standard, 10 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑