Are Marksans Pharma Ltd latest results good or bad?

Marksans Pharma Ltd's latest financial results for the quarter ended December 2025 highlight a notable recovery in operational performance following previous challenges. The company reported a record quarterly revenue of ₹754.43 crores, reflecting a quarter-on-quarter growth of 4.72% and a year-on-year increase of 10.64%. This marks a significant rebound from the previous quarter's performance, where revenue growth was higher at 16.20%. Net profit for the same quarter reached ₹113.20 crores, showing a sequential increase of 15.22% and an 8.26% rise compared to the same period last year. Additionally, the operating margin improved to 21.31%, up from 20.06% in the prior quarter, indicating enhanced operational efficiency despite rising employee costs. However, the company has faced challenges, as evidenced by a decline in the growth rate of both revenue and net profit compared to the previous quarter. The nine-month performance for FY26 indicates that Marksans Pharma has achieved approximately 79.9% of the previous full year's revenue, suggesting it is on track for modest growth. There are emerging concerns regarding capital efficiency, with the half-yearly return on capital employed (ROCE) declining to 16.13%, which is significantly lower than the five-year average of 27.77%. This decline, along with a deteriorating inventory turnover ratio, raises questions about the company's operational efficiency as it scales. The company has also experienced a substantial reduction in foreign institutional investor holdings, which fell from 22.20% to 8.12% over the past year, indicating a loss of confidence among sophisticated investors regarding the company's growth prospects. Overall, while Marksans Pharma has demonstrated operational improvements and a strong balance sheet, the recent adjustments in its evaluation reflect ongoing concerns about valuation and growth sustainability in a competitive pharmaceutical landscape.