Hindustan Laboratories, a Maharashtra-based pharmaceutical manufacturer specializing in generic formulations for government institutions, has submitted a DRHP with the Securities and Exchange Board of India (SEBI). The company plans to raise funds through a combination of a fresh issue and offer for sale, aggregating up to 14.1 million equity shares.
Hindustan Laboratories IPO: Offer Overview
| Particulars | Details |
|---|---|
| Type of Issue | Fresh + Offer for Sale |
| Fresh Issue | 50,00,000 shares |
| Offer for Sale (OFS) | 91,00,000 shares by Promoter Rajesh Vasantray Doshi |
| Total Offer Size | 1,41,00,000 equity shares |
| Book Running Lead Manager (BRLM) | Choice Capital Advisors |
| Registrar to the Issue | MUFG Intime India |
Hindustan Laboratories IPO: Business Snapshot
Hindustan Laboratories is a Business-to-Government (B2G) focused pharmaceutical company that manufactures and supplies generic formulations to central and state government health departments across India. Approximately 90% of its revenue is derived from government procurement contracts.
The company’s product portfolio stood at 948 formulations as of 30 September 2025, covering multiple therapeutic areas such as anti-infectives, cardiac, nutritional, pain and analgesics, and vitamin supplements.
It operates a WHO-GMP and ISO 9001:2015 certified facility in Palghar, Maharashtra, and is commissioning a second manufacturing unit (Unit 2) with an annual installed capacity of:
- 2,500 million tablets
- 30 million bottles of external liquids
- 50 million bottles of ointments
- 17.5 million jars of creams
Hindustan Laboratories IPO: Financial Performance
| Particulars | FY 2023 | FY 2024 | FY 2025 | H1 FY2026 |
|---|---|---|---|---|
| Revenue from Operations | 172.34 | 186.37 | 219.75 | 112.63 |
| EBITDA | 30.69 | 44.09 | 53.88 | 25.46 |
| EBITDA Margin (%) | 17.81 | 23.66 | 24.52 | 22.60 |
| Profit After Tax (PAT) | 22.25 | 34.14 | 41.27 | 18.24 |
| PAT Margin (%) | 12.91 | 18.32 | 18.78 | 16.19 |
| Return on Capital Employed (RoCE) | 31.76 | 37.25 | 33.13 | 12.86 |
| Return on Net Worth (RoNW) | 24.18 | 28.39 | 26.11 | 9.71 |
| Debt-to-Equity Ratio (X) | 0.01 | 0.08 | 0.06 | 0.04 |
| Basic EPS (INR) | 4.46 | 6.85 | 8.28 | 3.66 |
Use of Funds
| Purpose | Estimated Amount (INR Cr) |
|---|---|
| Funding working capital requirements | 72.50 |
| General corporate purposes | Balance |
Operational Strengths
- Dominant B2G presence – ~90% of revenue from central and state health departments.
- Extensive product range – 948 generic formulations across 12 therapeutic areas.
- High tender success ratio – 79% in H1 FY26; 64% in FY25.
- Regulatory compliance – WHO-GMP, GLP, and ISO 9001:2015 certifications.
- Financial prudence – Strong liquidity and minimal leverage.
Strategic Direction
Hindustan Laboratories has outlined a growth roadmap centered on:
- Expanding tender participation across more states and categories.
- Entering semi-regulated and unregulated global markets in Africa, the CIS, and Asia.
- Introducing cosmetic and skincare products for government procurement channels.
- Commissioning Unit 2 to enhance manufacturing scalability and reduce lead times.
Final Words
Hindustan Laboratories is a strong B2G pharmaceutical player in India’s expanding public healthcare ecosystem. With consistent top-line growth, improving margins, and prudent leverage, the company demonstrates robust fundamentals.
However, its reliance on government contracts introduces concentration risks, which management aims to mitigate via product diversification and international expansion.
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