Pharma Stock in Focus after Proposal for Split and Bonus Issue

Synopsis:
This move is aimed at enhancing liquidity and broadening shareholding
– Company board to consider sub-division of equity shares in 1:10 ratio
– Board to consider bonus share issue up to 1:1 (one bonus share for every one share held)
– This move is to enhance liquidity and broaden shareholding
– The company reported rise of 830% in Net Profit on a Q-o-Q basis at Rs 23.29 crore in Q1FY26
– The company’s revenue for Q1FY26 is Rs 299.91 crores

Welcure Drugs & Pharmaceuticals Ltd today announced that its Board of Directors will meet on Friday, August 22, 2025 to consider the proposal of Stock Split and Bonus Issue. Following the company’s stellar Q1FY26 financial results, this move is aimed at enhancing liquidity and broadening shareholding.

As per the proposal, the company has suggested Sub-division (Stock Split) of the company’s equity shares in the ratio of 1:10 (i.e. one equity share into ten equity shares), subject to approvals as may be required. The company has also proposed issue of Bonus Shares up to 1:1 (i.e., one bonus equity share for every one equity share held), subject to availability of adequate reserves and receipt of requisite approvals.

These proposals are part of Welcure’s commitment to enhancing market liquidity, expanding retail participation, and improving affordability for investors. These proposals are subject to the Board’s decision and subsequent statutory/ shareholder approvals. If approved, the Company will announce record dates and implementation timelines separately, in accordance with SEBI Listing Obligations and Disclosure Requirements (LODR) and applicable laws.

Speaking on this development, the company management commented, “As a part of our evolving business strategies, we have come up with this proposal for Stock Split and Bonus Issue. These proposals reflect our confidence in Welcure’s growth trajectory and our commitment to enhancing shareholder value. Coupled with our strong financial results and asset-light business model, these steps aim to make Welcure’s shares more accessible and liquid in the market.”

Recently, the company announced its Q1FY26 financial results. Driven by its strategic foray into fee-based export-oriented sourcing services, company’s Revenue from Operations rose sharply to Rs. 299.91 crore in Q1FY26, up from Rs. 21.21 crore in Q4FY25. This represents growth of around 1300% QoQ. Net Profit surged to Rs. 23.29 crore from Rs. 2.50 crore in Q4FY25, marking an 830% increase.

Previously, the company completed seven export-sourcing assignments totalling Rs. 299.91 crore, earning fixed commission income with no inventory or logistics exposure, maintaining its debt-free status. In addition, a Rs. 517 crore global sourcing mandate from Thailand-based Fortune Sagar Impex Company Limited is expected to generate approximately Rs. 25.85 crore in service income during FY26.

The outcome of the Board meeting will be disclosed to shareholders and the exchanges immediately after the meeting ie on Friday August 22, 2025, as per regulatory requirements.

Incorporated in 1992, Welcure Drugs & Pharmaceuticals Ltd is an established pharmaceutical company in India, engaged in the manufacture and trade of a wide range of healthcare formulations. With a focus on quality, compliance, and global integration, Welcure continues to expand its presence in both domestic and international markets.

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.