Panacea Biotec Limited (PANACEABIO) AI Stock Analysis

• Market Cap: ₹24.87B
• Dividend Yield: N/A
• Average Volume (3M): 12.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 9.78%
• EPS Growth: 50.78%
• Country: IN
• Employees: 1,936
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -2.27
• Shares Outstanding: 61,250,744
• 10 Day Avg. Volume: 14,140
• 30 Day Avg. Volume: 12,438
• PEG Ratio: -0.53
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 4.94
• P/FCF Ratio: -35.56
• 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: 51 Neutral
• Price Target: ₹434.00 ▲(21.06% Upside)

The score is primarily constrained by weak financial performance (ongoing losses, stagnant revenue, and negative operating/free cash flow). Technicals are a positive offset with an uptrend and bullish momentum, but valuation remains pressured due to a large negative P/E and no dividend yield data.

Positive Factors

Low Leverage / Strong Equity Ratio

Very low debt and a strong equity ratio give the company durable financial flexibility. This structure supports funding R&D, manufacturing scale-up, and contract obligations without high interest burdens, helping sustain operations through cyclical revenue weakness.

High Gross Profit Margin

A ~64% gross margin reflects structural cost advantage in manufacturing and product mix. High gross margins provide room to absorb SG&A and R&D, enabling profitable scaling if revenue growth resumes and strengthening long-term margin sustainability versus peers.

Diversified Revenue Streams

Sales from vaccines, therapeutics and contract manufacturing plus government program participation reduce reliance on any single product. This diversification supports steadier demand, access to public-sector tenders, and multiple commercialization pathways over the medium term.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow constrains internal funding for capex, R&D and working capital. Over months this raises dependence on external financing, risks covenant pressure, and can force delays in product development or capacity expansion.

Ongoing Net Losses and Negative EBIT

Continued operating losses indicate fundamental profitability challenges despite healthy gross margins. Sustained negative EBIT erodes retained earnings, limits reinvestment capacity, and undermines the firm’s ability to self-fund growth initiatives or compete on pricing long-term.

Stagnant Revenue and Declining Asset Base

No revenue growth alongside falling assets and shareholders' equity suggests shrinking operational scale or underinvestment. Over several months this can impair market position, reduce production flexibility, and increase reliance on external capital to restore growth.

Panacea Biotec Limited Business Overview & Revenue Model

Company Description

Panacea Biotec Limited, a biotechnology company, engages in the research and development, manufacture, and marketing of pharmaceuticals, vaccines, and biosimilars in India. It operates through Vaccines and Formulations segments. The company's product portfolio includes prescription products in various therapeutic areas, such as pain management, diabetes and cardiovascular management, oncology, renal disease management, osteoporosis management, anti-tubercular, and gastro-intestinal care; and vaccines for anthrax, dengue, Japanese encephalitis, and others. It also exports its products to over 30 countries worldwide, including the United States, Germany, the Russian Federation, Sri Lanka, the Philippines, etc. The company has a collaboration agreement with the Russian Direct Investment Fund for producing Covid-19 vaccine Sputnik-V; and the Coalition for Epidemic Preparedness Innovations and Translational Health Science and Technology Institute to develop vaccine candidates that could protect against SARS-Cov-2 variants and other Beta coronaviruses. Panacea Biotec Limited was incorporated in 1984 and is based in New Delhi, India.

How the Company Makes Money

Panacea Biotec generates revenue through multiple streams, primarily from the sale of vaccines and biopharmaceutical products. The company markets its products to government health programs, hospitals, and private healthcare providers, both in India and globally. Additionally, Panacea Biotec engages in contract manufacturing for other pharmaceutical companies, providing an additional revenue source. Key partnerships with global health organizations and participation in government vaccination programs further enhance its revenue potential. The company also invests in research and development to innovate and expand its product offerings, which can lead to increased sales and market share.

Panacea Biotec Limited Financial Statement Overview

Summary

Panacea Biotec's financial performance is challenged by declining revenue and profitability, negative EBIT and net income, and liquidity issues. Despite a strong equity position, the company struggles with cash flow generation and stagnant revenue growth.

Income Statement

Panacea Biotec's income statement shows mixed performance with declining revenue and profitability. The gross profit margin for 2025 is approximately 64.31%, indicating decent cost management. However, the company has been experiencing negative EBIT and net income, reflecting operational challenges. The net profit margin is negative due to consistent net losses, and revenue growth has stagnated, showing no growth from 2024 to 2025.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.03 in 2025, showing effective leverage management. However, the company has faced declining total assets and stockholders' equity over the years. The equity ratio stands at 64.73% in 2025, suggesting a stable financial structure, but the decline in assets could be a concern for future growth.

Cash Flow

Panacea Biotec's cash flow statement reveals liquidity challenges, with negative operating cash flow and free cash flow in 2025. The company is struggling to generate cash from operations, reflected in the negative operating cash flow to net income ratio. The free cash flow to net income ratio is also negative, indicating a need for improvement in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.10B	5.59B	5.52B	4.57B	6.59B	6.18B
Gross Profit	3.75B	3.60B	446.53M	1.78B	3.42B	4.13B
EBITDA	540.00M	307.40M	415.37M	563.65M	16.74B	865.18M
Net Income	114.80M	-83.70M	-11.73M	-332.37M	10.78B	-1.48B
Balance Sheet
Total Assets	0.00	12.90B	12.41B	12.71B	17.59B	11.78B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.79B	1.56B	2.13B	5.52B	954.44M
Total Debt	0.00	222.10M	209.90M	202.19M	341.55M	8.20B
Total Liabilities	-8.31B	4.59B	4.02B	4.31B	8.85B	14.09B
Stockholders Equity	8.31B	8.35B	8.42B	8.44B	8.77B	-2.29B
Cash Flow
Free Cash Flow	0.00	-776.80M	-778.18M	-4.63B	-1.21B	850.01M
Operating Cash Flow	0.00	-273.70M	-1.00M	-4.22B	-1.08B	1.07B
Investing Cash Flow	0.00	649.80M	102.27M	4.30B	12.83B	-476.79M
Financing Cash Flow	0.00	-26.60M	-28.08M	-183.73M	-11.76B	-471.10M

Panacea Biotec Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 358.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PANACEABIO, the sentiment is Positive. The current price of 358.5 is below the 20-day moving average (MA) of 373.71, below the 50-day MA of 375.67, and below the 200-day MA of 430.22, indicating a neutral trend. The MACD of 8.68 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 53.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PANACEABIO.

Panacea Biotec Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹696.09B	20.34	―	0.33%	7.33%	-3.79%
IPCALAB	74 Outperform	₹398.13B	47.88	―	0.28%	9.66%	25.79%
ALKEM	72 Outperform	₹693.51B	29.37	―	0.80%	9.32%	11.25%
GLAXO	63 Neutral	₹402.25B	42.11	―	2.16%	4.17%	41.51%
GLENMARK	53 Neutral	₹566.35B	56.08	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹24.87B	-343.49	―	―	9.78%	50.78%

Panacea Biotec Limited Corporate Events

Panacea Biotec Disputes ₹9.38 Crore Tax Penalty, Sees No Material Business Impact

Panacea Biotec Limited has disclosed that it has received three demand orders from the Office of the Assistant Commissioner of Income Tax, Central Circle 29, Delhi, imposing penalties totaling approximately ₹9.38 crore for alleged under-reporting of income for assessment years 2017-18, 2020-21 and 2021-22 under Section 270A of the Income Tax Act, 1961. The company maintains that the tax demand is not sustainable and plans to challenge the orders by filing an appeal with the appellate authority, adding that it does not expect any material impact on its financial position, operations or other activities, which may reassure investors and stakeholders about the limited immediate operational risk from this tax dispute.

Panacea Biotec Announces Leadership Changes and Policy Updates

Panacea Biotec Limited announced key changes in its leadership, with Mr. Vinod Goel appointed as the new Chief Financial Officer and Mr. Ankit Jain as the Company Secretary and Compliance Officer. These appointments, effective December 16, 2025, follow the resignation of the previous CFO, Mr. Devender Gupta. Additionally, the company has revised its policy for determining the materiality of events and authorized specific personnel for disclosures to stock exchanges, which may enhance its governance and operational transparency.