Lyka Labs Limited (LYKALABS) AI Stock Analysis

• Market Cap: ₹1.84B
• Dividend Yield: N/A
• Average Volume (3M): 3.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 4.04%
• EPS Growth: -35.02%
• Country: IN
• Employees: 423
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.00
• Shares Outstanding: 35,690,000
• 10 Day Avg. Volume: 1,252
• 30 Day Avg. Volume: 3,017
• PEG Ratio: -0.12
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 2.64
• P/FCF Ratio: -26.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹59.00 ▼(-37.50% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily supported by improving operating performance and a stronger equity position, but it is materially weighed down by weak cash flow (negative free cash flow), a clearly bearish technical trend, and limited valuation support due to a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth

Sustained, strong revenue growth indicates expanding market traction for Lyka Labs' formulations across domestic and export channels. Durable top-line expansion improves scale economics, supports long-term investment in R&D and manufacturing capacity, and underpins future margin and cash generation potential.

Improving Operating Margins

Improved EBIT/EBITDA margins point to better cost control and operational leverage in Lyka's manufacturing and commercial processes. Sustainable margin expansion enhances free cash flow potential and return on invested capital, strengthening the firm's ability to finance growth and withstand pricing pressure over months.

Strengthened Equity & Lower Leverage

A stronger equity base and reduced leverage improve financial flexibility and reduce default risk. This durable balance-sheet improvement gives Lyka Labs more capacity for capex, working capital funding, and strategic moves (exports or contract manufacturing) without immediate reliance on costly external financing.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow limits Lyka's ability to self-fund expansion and forces dependence on external capital or equity. Over several months this can constrain organic growth, delay new product scale-up, and increase vulnerability to funding-cost rises, undermining long-term investment plans.

High Overall Liabilities

Elevated liabilities, despite lower leverage ratios, create ongoing liquidity and interest-service pressure. Structurally high obligations reduce operational flexibility, limit capacity to absorb shocks, and can raise refinancing risk if cash conversion remains weak over the next several quarters.

Earnings Volatility / Negative EPS Growth

Large negative EPS growth and fluctuating net margins signal unstable profitability and forecasting difficulty. Over the medium term this volatility impairs reinvestment planning, complicates lender and supplier assessments, and makes sustaining consistent returns to shareholders more challenging.

Lyka Labs Limited Business Overview & Revenue Model

Company Description

Lyka Labs Limited, a pharmaceutical company, engages in development, manufacture, and marketing of pharmaceutical formulations and active pharmaceutical ingredients across various therapeutic segments in India. The company manufactures and sells various formulations, including emollient, topical steroid, antifungal agent, topical anti-bacterial, acne management, dermatological formulation, pain killer, anti-aging, cleansing lotion, hair care, anti-dandruff shampoo, sunscreen, anti-acne, cosmeceutical, anti-oxidant, proton pump inhibitor, anti-malarial, anti-bacterial, corticosteroid hormones, cephalosporin, dry powder injection, muscle relaxant, bone resorption inhibitor, anti-oxidant/liver disease, antibiotic, and lyophilized products. It also offers contracted manufacturing services to various large pharmaceutical companies; and medical and technical assistance in the areas of manufacturing know how and manufacturing facilities, as well as technical data, such as molecule stability testing data, impurity profile, and BA/BE clinical study data. In addition, it provides products and services in therapeutic categories, such as intensive care, gastroenterology, anti-infective, anti-fungal, surgery care, cosmetologist, urology, wound care, and anesthesia, as well as deals in pharmaceutical products. The company offers its products in various formulations, including injections, creams, ointments, gels, and lotions. It also exports its products to Bangladesh, Combodia, Congo, Costa Rica, Peru, Romania, Russia, Sri Lanka, Sudan, Ukraine, Venezuela, and Vietnam. Lyka Labs Limited was incorporated in 1976 and is based in Mumbai, India.

How the Company Makes Money

Lyka Labs generates revenue through multiple streams including the direct sale of its health and wellness products via online platforms and retail partnerships. The company has established a subscription model that allows customers to receive regular shipments of their products, providing a stable and recurring income. Additionally, Lyka Labs may engage in partnerships with health professionals and wellness influencers to promote its offerings, further driving sales through collaborative marketing efforts. The company's focus on research and development also positions it to explore licensing opportunities for its proprietary formulations, potentially contributing to its earnings.

Lyka Labs Limited Financial Statement Overview

Summary

Strong revenue growth and improving EBIT/EBITDA margins support the score, and equity strength has improved with lower leverage. However, high liabilities remain a balance-sheet risk, and weak cash conversion with negative free cash flow reduces financial flexibility.

Income Statement

Lyka Labs Limited has shown strong revenue growth, with a significant increase in Total Revenue from the previous years. The Gross Profit Margin is robust, indicating effective cost management. However, the Net Profit Margin has fluctuated, suggesting varying profitability levels. The EBIT and EBITDA margins have improved, reflecting enhanced operational efficiency over time.

Balance Sheet

The company has improved its financial position with increasing Stockholders' Equity, which has strengthened the Equity Ratio. The Debt-to-Equity Ratio has decreased, indicating reduced leverage. However, the overall liabilities remain high, posing potential financial risks. Return on Equity has improved due to better profitability in recent periods.

Cash Flow

Operating Cash Flow has been relatively stable but remains low compared to Net Income, indicating less cash generation from operations. Free Cash Flow has been negative, primarily due to high capital expenditures. The Free Cash Flow to Net Income ratio highlights challenges in converting profits into free cash flow, which could affect future investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.38B	1.41B	1.05B	916.90M	1.84B	671.07M
Gross Profit	714.24M	851.35M	599.41M	152.84M	1.30B	289.23M
EBITDA	140.68M	201.67M	167.59M	128.47M	1.01B	201.17M
Net Income	20.55M	80.12M	-24.89M	-132.12M	390.00M	-115.55M
Balance Sheet
Total Assets	1.68B	1.76B	1.57B	1.52B	1.86B	1.90B
Cash, Cash Equivalents and Short-Term Investments	11.89M	13.63M	62.91M	119.39M	170.59M	76.30M
Total Debt	316.57M	391.84M	586.50M	751.02M	1.30B	1.63B
Total Liabilities	664.32M	726.24M	884.59M	1.06B	1.72B	2.15B
Stockholders Equity	1.01B	1.04B	681.54M	454.41M	133.38M	-257.97M
Cash Flow
Free Cash Flow	51.46M	-137.55M	-74.58M	7.67M	717.33M	75.44M
Operating Cash Flow	136.84M	18.99M	17.73M	89.53M	792.46M	88.11M
Investing Cash Flow	-46.95M	-117.96M	-94.88M	73.50M	-61.72M	-1.61M
Financing Cash Flow	-91.69M	52.92M	19.53M	-216.43M	-631.77M	-117.98M

Lyka Labs Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LYKALABS, the sentiment is Negative. The current price of 94.4 is above the 20-day moving average (MA) of 60.15, above the 50-day MA of 68.89, and above the 200-day MA of 91.33, indicating a bearish trend. The MACD of -4.55 indicates Positive momentum. The RSI at 23.42 is Positive, neither overbought nor oversold. The STOCH value of 7.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LYKALABS.

Lyka Labs Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDICO	71 Outperform	₹3.21B	36.55	―	―	21.55%	47.80%
ZIMLAB	63 Neutral	₹3.36B	19.99	―	―	-5.82%	-59.22%
NURECA	57 Neutral	₹2.36B	20.62	―	―	43.30%	―
LYKALABS	54 Neutral	₹1.84B	-338,564.26	―	―	4.04%	-35.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BROOKS	46 Neutral	₹1.64B	10.71	―	―	18.67%	―

Lyka Labs Limited Corporate Events

NCLT Clears Merger of Lyka Exports With Lyka Labs

Lyka Labs Limited has announced that the National Company Law Tribunal, Ahmedabad Bench, has approved the amalgamation of Lyka Exports Limited with Lyka Labs under sections 230 to 232 of the Companies Act, 2013. The scheme, with an appointed date of April 1, 2022, consolidates the group’s operations and is expected to streamline its corporate structure and regulatory compliance.

Following the tribunal’s approval on March 16, 2026, the company is proceeding to file the necessary e-form INC-28 and related documents with the Registrar of Companies within the prescribed 30-day period. This procedural step will move the merger towards formal effectiveness, potentially improving operational efficiency and clarity for shareholders and other stakeholders.

Lyka Labs Says NCLT Reserves Order on Amalgamation Scheme After FEMA Compliance Filing

Lyka Labs Limited has updated exchanges on the status of its proposed scheme of amalgamation, noting that the National Company Law Tribunal has examined its filings on compliance with foreign exchange and import-export regulations. The company reported that it has submitted the required compliance affidavit on Import Export Code and FEMA guidelines as directed, and that the Tribunal has now reserved its order, marking a procedural step forward in the amalgamation process.

The update signals progress in Lyka Labs’ corporate restructuring efforts, which could have implications for its operational integration and regulatory profile once the Tribunal’s decision is delivered. Stakeholders will be watching for the final order, as it will determine the timing and conditions under which the amalgamation can be implemented and reflected in the company’s future disclosures and strategy.

Lyka Labs Confirms SEBI Dematerialisation Compliance for December Quarter

Lyka Labs Limited has reported that its registrar and share transfer agent, MUFG Intime India Private Limited, has issued a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate confirms that all securities received for dematerialisation during the quarter were duly processed, either accepted or rejected, listed on the appropriate stock exchanges, and that corresponding physical certificates were mutilated, cancelled, and replaced with depository records within prescribed timelines, underscoring the company’s adherence to regulatory requirements in handling its share capital.