Shares of Unichem Laboratories soared nearly 18% after posting a significant profit swing and revenue growth in the first quarter, defying cautious market forecasts.
Unichem Laboratories’ shares climbed sharply on Tuesday after the drugmaker reported a strong first quarter, swinging back to profit and posting a solid rise in revenue that reassured investors about its operating momentum. The stock rose as much as 17.79% to ₹598.35 on the BSE, reflecting a brisk response to the numbers.
The company reported a net profit of ₹41.47 crore for the quarter, compared with a loss of ₹10.47 crore a year earlier. Revenue from operations rose 20.1% year-on-year to ₹632.62 crore, while EBITDA, a key measure of operating profit before interest, tax, depreciation and amortisation, increased to ₹70.6 crore from ₹23.5 crore. EBITDA margin also improved, widening to 11.2% from 4.5% a year ago, suggesting better cost control and stronger profitability.
The latest figures marked a clear improvement on the company’s earlier quarterly performance too. NDTV Profit noted that Unichem had reported a profit of ₹10.91 crore in the March quarter, so the June-quarter result extended that recovery. The gains also came after a period in which market expectations had been cautious: a preview from Univest had pointed to revenue of about ₹575 crore and a loss after tax of around ₹5 crore, underscoring how far the company beat the market’s softer forecasts.
Despite the one-day rally, the shares have been volatile. NDTV Profit reported that the stock had fallen 11% over the previous month, even after a 50% rise over three months and a 100% gain over five years. LiveMint also highlighted the sharp improvement in earnings and earnings per share in the latest quarter, while market data from Kotak Neo had previously shown that revenue growth in the comparable period last year was already positive but profits were under pressure, making the latest turnaround more striking.
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