Penny Stock Under Rs 12 Hits 5% Upper Circuit as Company Reports 830% Jump in Q1FY26 Net Profit to Rs 23.29 Crore

DSIJ Intelligence-2 / 05 Aug 2025/ Categories: Mindshare, Quarterly Results, Trending

Penny Stock Under Rs 12 Hits 5% Upper Circuit as Company Reports 830% Jump in Q1FY26 Net Profit to Rs 23.29 Crore

In the last 12 months, the stock price has jumped by over 37 per cent.

Welcure Drugs & Pharmaceuticals Ltd, a Small-Cap pharmaceutical company, has announced strong Quarterly Results for Q1FY26, registering a sharp rise in both revenue and net profit. The company posted a net profit of Rs 23.29 crore for the quarter ended June 30, 2025, marking an increase of 830 per cent quarter-on-quarter (Q-o-Q) compared to Rs 2.5 crore in Q4FY25. This also represents a significant turnaround from a net loss of Rs 0.34 crore in Q1FY25.

Revenue from operations surged to Rs 299.91 crore in Q1FY26, up from Rs 21.21 crore in Q4FY25, indicating a growth of nearly 1300 per cent on a Q-o-Q basis. The dramatic increase in revenue was primarily driven by the company's shift to an asset-light, fee-based sourcing model focused on export markets. The earnings per share (EPS) stood at Rs 2.07 in Q1FY26, as against Rs -0.26 in the same quarter last year.

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Welcure has recently completed seven export-sourcing assignments, amounting to Rs 299.91 crore, acting as a procurement agent for international buyers. These transactions contributed to the company’s income through a fixed 5 per cent commission, without exposing Welcure to inventory, logistics, or working capital risks. This model aligns with Ind AS 115 standards, wherein commission income is recognized on a receipt basis.

In a significant development earlier, the company secured a Rs 517 crore global sourcing mandate from Thailand-based Fortune Sagar Impex Company Limited. This deal alone is expected to generate around Rs 25.85 crore in service income during FY26, further boosting Welcure’s topline without the need for additional capital deployment.

On the governance front, Welcure appointed Mr. Rabi Thakor as an Additional Non-Executive Non-Independent Director. In addition, Mr. Yogeshkumar Prajapati and Mrs. Bhumika Pradhan were appointed as Additional Independent Directors, strengthening the leadership team for future growth.

Founded in 1992, Welcure Drugs & Pharmaceuticals Ltd manufactures and trades a wide range of healthcare formulations in India and abroad. With its recent strategic shift and improved financial metrics, the company is positioning itself for long-term sustainable growth.

In the last 12 months, the stock price has jumped over 37 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.