Rodec Pharma IPO

Strengths · 6

• 01Revenue from operations grew at a CAGR of 21.89%, from Rs 71.61 crore in FY2023 to Rs 106.39 crore in FY2025.
• 02EBITDA margin rose from 11.34% in FY2023 to 24.21% in FY2025, and PAT grew from Rs 5.21 crore to Rs 18.26 crore.
• 03Return on equity was 36.49% and return on capital employed was 40.94% in FY2025.
• 04Borrowing is low. The debt to equity ratio fell from 0.57 in FY2023 to 0.17 in FY2025 and 0.02 on 30 September 2025, when net debt was negative at Rs -1.61 crore.
• 05The company has its own plant at Ghaziabad with Fami-QS and ISO certifications. The bolus section alone has 180 tons of annual capacity.
• 06A field force of 492 people and 64 product SKUs give it reach in 15 states. Uttar Pradesh gave 38.74% of FY2025 revenue.

Risks · 9

• 01Veterinary drugs, 57.97% of FY2025 revenue, are made by third-party manufacturers. The top 5 of them supplied 82.40% of FY2025 purchases of stock in trade, and two agreements ended in the last three years.
• 02The top 5 customers gave 50.39% of revenue and the top 10 gave 59.29% in the six months to 30 September 2025.
• 03Uttar Pradesh gave 38.74% of FY2025 revenue, and the only plant is in Ghaziabad, Uttar Pradesh.
• 04Operating cash flow fell from Rs 10.61 crore in FY2023 to Rs 8.86 crore in FY2025 and Rs 1.09 crore in the six months to September 2025, while PAT rose to Rs 18.26 crore in FY2025.
• 05Advances to related party RCP Distilleries (India) Private Limited stood at Rs 23.62 crore on 31 March 2025 and Rs 21.04 crore on 30 September 2025, which is 33.54% of half-year revenue.
• 06The plant started in December 2022 and used only about 20% to 50% of capacity in FY2025, so the manufacturing history is short.
• 07The plant started operating on 29 December 2022 but got its Consent to Operate from the Uttar Pradesh Pollution Control Board only on 30 September 2024. No action has been taken so far.
• 08The whole issue is an offer for sale. The selling promoter's weighted average cost is Rs 0.05 per share, and the company gets no money from it.
• 09Sales representatives cost Rs 27.50 crore in FY2025, which is 25.85% of revenue, and stockists carry no formal agreement with the company.

Rodec Pharma Limited is a Ghaziabad-based company in the animal healthcare business. It makes animal feed supplements in its own plant and sells veterinary medicines under its own brand. The medicines are made for it by third-party manufacturers. It was incorporated on 18 November 1997 as Rodec Pharmaceuticals Private Limited and became a public limited company in 2024.

The company earns from two segments. In FY2025, veterinary pharmaceutical drugs gave Rs 61.67 crore, or 57.97% of revenue, and animal feed supplements gave Rs 44.68 crore, or 42.00%. In the six months to 30 September 2025, the split was 61.58% and 38.30%. The company sold 64 product SKUs in that period, up from 59 in FY2023.

Its manufacturing plant at Ghaziabad, Uttar Pradesh, started on 29 December 2022. It has Fami-QS and ISO certifications. The bolus section has an installed capacity of 180 tons a year. The document says utilisation in FY2025 ranged from about 20% to 50% across formulations. The company recently added a poultry feed supplement to its range.

Sales run through a field force of 492 people as on 30 September 2025, with 404 veterinary sales representatives on its rolls. It also uses 13 consignee agents and 383 stockists. Uttar Pradesh gave 38.74% of FY2025 revenue, followed by Maharashtra at 15.43% and West Bengal at 12.21%. The company had 573 employees on 30 September 2025.

The company is promoted by Mukesh Kumar Gupta, Chhaya Gupta and Utkarsh Gupta. The IPO is an offer for sale only. Mukesh Kumar Gupta is selling up to 56,50,000 shares, so the company will not receive any money from it.

The industry

The document uses a CRISIL report dated December 2025. It says India has about 536.8 million livestock, including 303.8 million bovines, and is the world's largest milk producer. Livestock contributes about 5.5% to national GVA and 31.0% to the GVA of agriculture and allied sectors. India has around 67,889 veterinary institutions. Egg production was 149.1 billion in fiscal 2025, which makes India second in the world. Rodec sells mainly to the livestock and poultry segments. The part of the document we read does not give a rupee market size for animal health.

Customer concentration: Top 5 customers gave 50.39% of revenue in the six months to 30 September 2025 (49.41% in FY2025). The largest customer gave 15.39%.