Emcure Pharma Q3 Results: Strong operating performance but stock gives up gains

Emcure Pharmaceuticals reported a strong set of December-quarter earnings, with consolidated net profit jumping 50% year-on-year to ₹230.5 crore, aided by robust revenue growth across domestic and international markets and margin expansion, despite a one-time hit from labour code-related costs.

The company, in an exchange filing on Wednesday, February 4, said that its revenue from operations rose 20.4% from last year to ₹2,363 crore in the December quarter, compared with ₹1,962 crore a year earlier.

Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) climbed 39% from the year-ago period to ₹493 crore, while operating margin expanded to 20.8% from 18% in the same period last year.

According to Emcure Pharma, profit growth was driven by strong traction across key therapies in India and sustained momentum in overseas markets. Domestic formulations revenue increased 15.4% from last year to ₹1,025 crore, led by chronic segments such as cardio and diabetes, while international business grew 24.5% to ₹1,338 crore, with broad-based growth across regions.

Emcure’s Rest of the World business rose 30.7%, while Europe and Canada posted growth of 29.6% and 12.8%, respectively. During the quarter, the company also launched Poviztra, a biological injectable semaglutide, in partnership with Novo Nordisk, strengthening its presence in the fast-growing weight management segment.

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Profitability, however, was partly impacted by an exceptional expense of about ₹38 crore, largely on account of a one-time charge related to the implementation of India’s new labour codes.

Commenting on the performance, Managing Director and CEO Satish Mehta said, "Q3 delivered a strong performance, with all our businesses outpacing industry growth." Emcure continues to focus on profitability alongside investing in products, people and processes, he added.

For the nine months ended December 2025, Emcure reported consolidated net profit of ₹1,116 crore, compared with ₹1,149 crore a year ago, reflecting the impact of exceptional costs during the period. Revenue for the nine months stood at ₹6,734 crore, up from ₹5,780 crore last year.

The board also approved the appointment of Amruta Jana Yangalwar as Company Secretary and Compliance Officer and cleared the reappointment of three independent directors, subject to shareholder approval.

Shares of Emcure Pharma are off the highs of the day after the results announcement to trade at ₹1,521.9. The stock is up 8% in the last six months.