Despite strong revenue and profit growth in its latest quarterly update, Jeena Sikho faces investor concerns over declining margins, rising finance costs, and the quality of its earnings, prompting a cautious market response.
Jeena Sikho Lifecare’s latest quarterly update has left investors with a familiar split verdict: strong top-line growth, but signs that earnings quality is becoming harder to read. Trade Brains reported that the ayurvedic healthcare group, whose brands include Hiims, Jeena Green Resources and Shuddhi Ayurveda, saw its shares slide sharply after the results, even as revenue and profit both moved higher.
On the face of it, the numbers were solid. Revenue from operations rose 29% year on year to ₹224.40 crore, while EBITDA increased 17% to ₹92.11 crore. Yet the pace of operating profit lagged sales, which meant the EBITDA margin narrowed to 41% from 45% a year earlier. That matters because it suggests the company generated more business without converting as much of it into operating profit as investors may have expected.
The stronger bottom line was also helped by a large jump in other income. Trade Brains said net profit climbed 28% to ₹65.69 crore, but other income surged 1,212% to ₹14.02 crore from ₹1.07 crore a year ago. In other words, the quarterly profit figure was supported by income outside the main business, which can make results look healthier than the underlying operating trend.
Costs below the operating line added to the cautious reading. Finance costs more than doubled to ₹3.47 crore from ₹1.66 crore, while depreciation and amortisation rose 59% to ₹15.33 crore. Those increases may reflect a larger asset base and heavier investment, but they also reduce the amount left after operating earnings are accounted for. Equitymaster’s annual report reviews show this is not a one-off pattern: in FY25, Jeena Sikho’s operating income rose 44.6% and net profit climbed 31.1%, yet operating and net margins both eased, while depreciation and finance costs increased sharply.
That wider backdrop helps explain why the market reaction was so severe. Jeena Sikho has been growing revenues, patient volumes and profits, but investors appear to be focusing on margin pressure, heavier financing charges and a rising depreciation burden. For now, the company’s growth story remains intact, but the latest quarter suggests the quality of that growth is under closer scrutiny.
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