Shree Ganesh Remedies reports a 47.66% drop in Q4 FY25 profit as revenue dips and new plant costs rise, signalling a consolidation phase ahead.
Shree Ganesh Remedies Limited (SGRL) reported a steep decline in financial performance for the quarter ended March 31, 2025. The company's consolidated net profit fell 47.66% to ₹6.59 crores, compared to ₹12.59 crores in the same quarter of the previous year. Revenue also took a significant hit, declining 34.56% year-on-year (YoY) to ₹24.43 crores from ₹37.33 crores in March 2024.
Annual numbers reflect resilience amid industry headwinds
For the full-year ended March 31, 2025, SGRL posted a net profit of ₹23.07 crores, a decline of 17.93% from ₹28.11 crores in FY24. Revenue dropped 13.74% year-on-year to ₹108.60 crores, down from ₹125.90 crores in the previous fiscal.
Despite the dip in topline numbers, the company maintained healthy operating margins. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for FY25 stood at ₹39.21 crores, reflecting a modest decline of 6% year-on-year. EBITDA margin improved by 290 basis points to 36.1%, highlighting operational efficiency gains primarily led by the Contract Research and Manufacturing Services (CRAMS) vertical.
European slowdown and pricing pressure weigh on the top line
The company's performance was impacted by external market pressures, notably a slowdown in the European region, one of its key geographies, and a 25-30% decline in realisations across its domestic portfolio. The decline in realisations is attributed to increasing domestic competition and broader market dynamics. However, the management noted strong volumetric growth, even if it was not fully reflected in revenue figures.
Impact of plant commissioning on profitability
The fall in profit after tax was also due to higher depreciation and finance costs resulting from the commissioning of Plant 8. While this new capacity has yet to yield proportional revenue, it sets the foundation for future scalability and growth.
Strengthening innovation through infrastructure and R&D
The firm is advancing its Research and Development (R&D) efforts with the construction of a new pilot plant, which is expected to be operational by Q2 FY26. This facility will aid in faster development and scale-up of CRAMS projects, helping the company speed up its innovation pipeline.
Global trends drive new opportunities
The global shift away from Chinese suppliers due to tariff changes and uncertainties has triggered a rise in inquiries. Although SGRL’s direct exposure to the US market remains limited, the company has seen growing interest from US-based clients for custom synthesis projects, potential long-term revenue streams. In the near term, the company continues to prioritise Europe and Asia.
FY26 outlook underlines consolidation and capacity-building efforts
Management considers FY26 a pivotal year for consolidation and infrastructure enhancement. While margin normalisation is expected in the coming quarters, largely due to contract repricing, SGRL remains optimistic about future growth driven by improved capacity utilisation, deeper client relationships, and a stronger innovation pipeline.
About Shree Ganesh Remedies
Listed on the Bombay Stock Exchange (BSE), Shree Ganesh Remedies is a leading name in pharmaceutical intermediates and speciality chemicals. As of 11:00 AM on May 20, 2025, the stock was trading at ₹702.00 per share. With a strong focus on R&D, sustainability, and global operations, SGRL continues to expand in niche chemical segments with high value-addition.
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