Hindustan Laboratories IPO – Upcoming Pharma IPO with Strong Margins
Hindustan Laboratories Ltd. IPO has received approval from Securities and Exchange Board of India on April 27, 2026, and is expected to enter the market soon, subject to conditions and approvals.
This IPO stands out as a pharma B2G (Business-to-Government) play, with strong margins and a growing product portfolio, making it one of the interesting upcoming IPOs in the healthcare sector.
IPO Details at a Glance
| Particulars | Details |
|---|---|
| IPO Type | Book Building Issue |
| Issue Structure | Fresh Issue + OFS |
| Total Issue Size | 1.41 crore shares |
| Fresh Issue | 0.50 crore shares |
| Offer for Sale | 0.91 crore shares |
| Face Value | Rs. 10 per share |
| Listing | BSE & NSE |
| IPO Dates | To be announced |
| Price Band | To be announced |
| Lot Size | To be announced |
IPO Timeline (Expected)
| Event | Date |
|---|---|
| SEBI Approval | 27 April 2026 |
| IPO Opening | Awaited |
| IPO Closing | Awaited |
| Allotment | Awaited |
| Listing | Awaited |
Issue Reservation
| Category | Allocation |
|---|---|
| QIB | ≤ 50% |
| Retail | ≥ 35% |
| NII | ≥ 15% |
About Hindustan Laboratories Ltd.
Incorporated in 2017, the company is engaged in large-scale manufacturing of generic medicines, primarily supplying to government institutions under a B2G procurement model.
Business Model Highlights
- Supplies through central and state government tenders
- Linked to healthcare schemes under Ministry of Health
- Pan-India presence across 27 states & UTs
Therapeutic Coverage
- Anti-diabetic, anti-infective, cardiac
- Respiratory, gastrointestinal
- Vitamins & nutritional supplements
- Pain management & chronic therapies
Manufacturing & Expansion
- Manufacturing facility at Palghar, Maharashtra
- ISO 9001:2015 certified
- Second unit under commissioning (growth trigger)
👉 Expansion capacity can drive future revenue scalability
Product Portfolio Strength
- Product count increased from 661 → 948 (FY23–Sep 2025)
- Wide dosage formats:
- Tablets, capsules
- Liquids, creams, ointments
- Combination packs
👉 Indicates strong R&D + diversification capability
Financial Performance (₹ Crore)
| Particulars | Sep 2025 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Total Income | 115.78 | 227.37 | 194.33 | 179.48 |
| PAT | 18.24 | 41.27 | 34.14 | 22.25 |
| EBITDA | 25.46 | 53.88 | 44.09 | 30.69 |
| Net Worth | 197.01 | 178.74 | 137.34 | 103.15 |
| Borrowings | 3.85 | 6.79 | 5.11 | 1.50 |
Key Financial Insight
- Consistent revenue growth
- Strong profitability trend
- Low debt → financially stable company
Key Performance Indicators (KPI)
| Metric | Sep 2025 | FY25 |
|---|---|---|
| ROCE | 12.86% | 33.13% |
| RoNW | 9.71% | 26.11% |
| PAT Margin | 16.19% | 18.78% |
| EBITDA Margin | 22.60% | 24.52% |
👉 High margins compared to pharma peers in tender business
Objects of the Issue
| Purpose | Amount (Rs. Cr.) |
|---|---|
| Working Capital | 72.50 |
| General Corporate | Balance |
👉 Focus is on business expansion & operational scaling
Promoters
- Rajesh Vasantray Doshi
- Kunjal C Dedhia
- Krishiv Rajesh Doshi
Lead Manager & Registrar
- Lead Manager: Choice Capital Advisors Pvt. Ltd.
- Registrar: MUFG Intime India Pvt. Ltd.
Investment Perspective (Early View)
Positives
- High-margin pharma business
- Strong government order pipeline
- Low debt levels
- Scalable product portfolio
Risks
- Dependence on government tenders
- Pricing pressure in generic drugs
- Execution risk in new plant
Chanakya View (Early Outlook)
This IPO is a margin-driven pharma play, unlike typical commodity businesses.
👉 Suitable for:
- Long-term investors in healthcare
- Investors seeking stable earnings visibility
👉 Watch closely:
- Valuation vs listed pharma peers
- Order book visibility
Overall: Looks fundamentally stronger than many SME / mid-size IPOs – valuation will be key trigger.
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