Welcure Drugs Secures Rs 85.6 Cr Export Order; Stock Ended In 5% Upper Circuit Limit

Shares of Welcure Drugs and Pharmaceuticals climbed the 5% upper circuit limit on Tuesday, reaching Rs 14.28, shortly after the firm revealed it won two large export contracts totalling Rs 85.6 crore. This milestone provides a notable vote of confidence for the small-cap drugmaker, which has been gradually bouncing back in recent months.

Each order, worth approximately Rs 42.8 crore, was awarded by overseas clients Giant Exim and Ravina International. In its stock exchange release, Welcure explained that the agreements will produce fee-based income without the usual risks tied to holding inventory or managing logistics. Revenue will be recorded as each shipment leaves the warehouse, and analysts expect this inflow to lift operating margins in the coming quarter.

The company has also pointed out that talks are advancing with other international customers for like-minded sourcing deals. If formal contracts are signed on schedule, Welcure could add another Rs 20 crore in revenue before the current quarter ends. Management remains committed to broadening its fee-driven export service while keeping the balance sheet free of debt.

Founded in 1992, Welcure Drugs & Pharmaceuticals manufactures and markets a broad spectrum of pharmaceutical products, such as tablets, capsules, antibiotics, and anti-diabetic medications. Yet, the company spent several years in the red, suffering consistent losses that eventually forced it to suspend operations entirely. Recently, management has pursued new partnerships and financial collaborations in a structured attempt to restart production and restore market confidence.

For the quarter that ended in March 2025, Welcure posted a standalone net profit of Rs 2.54 crore, a robust contrast to the net loss of Rs 0.02 crore recorded in the preceding period. Sales during the March quarter were Rs 21.21 crore, a marked improvement from zero revenue in the same quarter one year earlier. On an annual basis, FY25 results showed a net profit of Rs 2.17 crore, up from a loss of Rs 0.17 crore in FY24.

Welcure's share price reflects its recent upward trend. Over the past year, the stock has more than doubled, giving a multibagger return of 160%, and it has returned 62% over the three-year horizon. The company has a market cap of Rs 146 crore and trades at a price-to-earnings multiple of 32.72.