Small-cap stock under ₹100 jumps almost 11% as company shares expansion plans. Details here

Shares of Balaxi Pharmaceuticals surged over 10 percent on Monday, June 9, after the company announced its strategic expansion roadmap along with its financial results for the fourth quarter and full year of FY25. The small-cap stock, which trades below ₹100, jumped as much as 10.7 percent in intra-day trade to reach a high of ₹57.5. The rally came on the back of Balaxi’s aggressive plans to enter new markets, strengthen its supply chain through backward integration, and capitalize on its existing presence in frontier markets.

Global Expansion 

Balaxi outlined an ambitious growth strategy aimed at deepening its presence in current markets and entering new geographies. Between 2021 and 2024, the company expanded into regions such as Honduras, El Salvador, Nicaragua, and the Central African Republic by leveraging physical infrastructure and offering a wide range of products to meet consumer demand. Building on this foundation, the company now plans to scale operations further by entering additional Latin American countries, Southeast Asia, and the Commonwealth of Independent States (CIS). This expansion will follow Balaxi’s proven business model, which emphasizes differentiation and rapid scalability.

A major component of the company’s strategy for FY25 and beyond is the backward integration of its supply chain. Balaxi is in the final stages of operationalizing its first pharmaceutical formulation manufacturing facility in Jadcherla, Hyderabad. The plant has completed construction and installation, and Operational Qualification (OQ) and validation processes are underway, expected to be completed by the end of June 2025. Once functional, the facility will enable Balaxi to improve quality control, reduce costs, and support its medium-to-long-term growth plans by ensuring greater self-reliance in production.

FY25 and Q4 Earnings 

Balaxi’s financial performance for FY25 reflected a strong turnaround, with the company posting a net profit of ₹25 crore, a sharp recovery from a net loss of ₹2.39 crore in FY24. Annual revenue rose 21 percent to ₹292.5 crore from ₹241.3 crore in the previous fiscal. However, rising costs weighed on profitability, with EBITDA falling 24 percent year-on-year to ₹33.5 crore. EBITDA margins also declined to 11.5 percent from 18.3 percent in FY24, reflecting cost pressures primarily due to inflation, administrative expenses, and employee-related costs.

In the March 2025 quarter, net profit fell 21 percent to ₹8.64 crore from ₹10.9 crore a year earlier. Nonetheless, revenue during the quarter rose by 27.5 percent to ₹76.3 crore, indicating healthy topline growth. Operationally, EBITDA dropped 7 percent to ₹10.86 crore, and the EBITDA margin contracted to 14.2 percent from 19.5 percent in the same quarter of the previous year.

The company attributed the full-year growth to its enhanced execution capabilities and a shift in go-to-market strategy, particularly through newer sales channels such as institutional and hospital tenders. Balaxi also reported 85 new product registrations during the year, expanding its portfolio to 915 products across seven countries in Africa and Latin America. The management stated that this robust pipeline, combined with focused market penetration, will support continued revenue growth and market share expansion.

Stock Performance

While the June 9 rally brought some relief to shareholders, Balaxi’s stock has had a turbulent ride over the past year. Despite the recent gains, the stock is still down over 54 percent on a year-on-year basis. However, it has shown signs of recovery in recent months. In June so far, the stock has climbed 14 percent, following a 9.4 percent fall in May and a 13.7 percent decline in April. Notably, it had risen 20 percent in March, ending a seven-month losing streak that spanned from August 2024 to February 2025.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.