Sigachi Industries’ share price surges over 7% following the announcement of its Q3 2025 results

Shares of Sigachi Industries surged over 7% on January 20 after the company reported strong Q3 FY25 results, posting a significant 27.36% rise in net profit, a key indicator of the company's financial health and performance.

Earnings Performance

Sigachi Industries, a small-cap pharmaceutical company, has showcased its resilience by reporting a combined net income of ₹20.51 crore during the third quarter of fiscal year 2025, reflecting a 27.36% rise against ₹16.10 crore in the corresponding quarter of the previous year. Despite a slight 2% sequential dip, the company's overall performance remains strong, providing stability and confidence.

Operating income for the quarter amounted to ₹139.41 crore, marking a 25.65% year-over-year (YoY) growth and an 11.61% quarter-over-quarter (QoQ) increase. Among its four major revenue segments—MCC, operations and management, API, and allied trades—MCC accounted for the most significant portion, contributing 83%.

The company's EBITDA rose by 46.90% year-on-year, with EBITDA margins improving by 343 basis points (bps) to 23.81% during the third quarter of fiscal year 2025.

Future Outlook

Sigachi Industries has set its sights on a promising future, outlining ambitious plans to expand its market presence. The company is targeting B2B growth in human nutrition and excipient exports to over 60 countries. It is also determined to enter regulated API markets by pursuing European Union approvals and securing nine Certificates of Suitability (CEPs) in FY25 for critical APIs. These plans inspire optimism about the company's growth potential.

For its MCC segment, Sigachi Industries aims to achieve a significant milestone of 80% capacity utilisation of its expanded production capacity by FY26. This move could significantly boost its operations and revenue.

Market Reaction

Following the earnings announcement, Sigachi Industries' share price surged by 7.07%, closing at ₹55.66 per share. The stock opened at ₹55, higher than its previous close of ₹51.98.

With a market capitalisation of ₹1,775 crore, the stock remains 72% below its 52-week high of ₹95.94, but it has risen 28% from its 52-week low.

Sigachi Industries' strategic initiatives and strong Q3 performance position the company for further growth in the pharmaceutical and allied sectors and instil confidence in its prospects.

(all price movements are as of January 20, 10:41 AM)