Pick of the Week: Orchid Pharma Limited

Orchid Pharma Limited is a Chennai-based pharmaceutical company engaged in the manufacture of active pharmaceutical ingredients (APIs) and finished dosage formulations, with a core focus on Cephalosporin-based APIs used in anti-bacterial, anti-inflammatory and CNS/CVS formulations. The company came under the ownership of Dhanuka Laboratories Limited via an NCLT-approved resolution plan effective March 2020, and the two entities were subsequently amalgamated through a Scheme of Arrangement; final share allotment to Dhanuka Laboratories shareholders was completed on August 1, 2026, taking paid-up capital to ₹59.89 Cr. In 2025 the company launched its Antimicrobial Solutions (AMS) division targeting the antimicrobial-resistance (AMR) opportunity, and has signed agreements to acquire assets of Germany/France-based Allecra Therapeutics, adding the novel antibiotic Cefepime-Enmetazobactam to its portfolio. Promoter holding stands at 69.84%. FY26 was a weak year operationally — consolidated revenue fell to ₹811 Cr (down ~12% YoY) and OPM compressed sharply to ~5% from ~13% in FY25, with two quarters (Sep’25, Dec’25) reporting operating losses before a partial recovery in Q4FY26. Investors should note the stock’s current valuation multiples reflect both depressed trailing earnings and the recent equity dilution from the Dhanuka amalgamation.