RPG Life Sciences Limited (RPGLIFE) AI Stock Analysis

• Market Cap: ₹33.24B
• Dividend Yield: 0.85%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.98
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1,270
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 13.38
• Shares Outstanding: 16,539,015
• 10 Day Avg. Volume: 8,652
• 30 Day Avg. Volume: 3,228
• PEG Ratio: 0.19
• Price to Book (P/B): 7.03
• Price to Sales (P/S): 5.71
• P/FCF Ratio: 89.22
• 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: ₹2,470.00
• Price Target Upside: 7.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹2,271.00 ▼(-1.41% Downside)

The score is driven primarily by strong financial performance—high and improving margins and a near debt-free balance sheet—tempered by weaker cash-flow conversion versus reported earnings. Technical signals are broadly neutral, and valuation looks reasonable on P/E but with a modest dividend yield.

RPG Life Sciences Limited Business Overview & Revenue Model

Company Description

RPG Life Sciences Limited, an integrated pharmaceutical company, develops, manufactures, and markets branded formulations, generic, and synthetic active pharmaceutical ingredients (APIs) in India and internationally. The company offers synthetic APIs in various therapeutic categories, including immunosuppressants, anti-psychotic, anti-anginal, anthelmentics, anti-convulsant, anti-spasmodic, etc. It also provides generics primarily in area of immunosuppressant therapy; and finished dosage formulations for various therapies, such as nephrology, rheumatology, oncology, gastroenterology, cardiovascular, diabetology, orthopedics, neuropsychiatry, respiratory, nutritional, general, urology, anti-diabetic, anti-dengue, vitamins and minerals, gynecology and pediatrics, etc. The company was formerly known as RPG Pharmaceuticals Limited and changed its name to RPG Life Sciences Limited in February 2008. RPG Life Sciences Limited was founded in 1968 and is headquartered in Mumbai, India. RPG Life Sciences Limited is a subsidiary of Nucleus Life Trust.

How the Company Makes Money

RPG Life Sciences Limited Financial Statement Overview

Summary

Strong revenue growth and very high, expanding profitability alongside an exceptionally conservative (near debt-free) balance sheet. The main offsets are mixed/volatile free cash flow conversion versus elevated FY2025 earnings and a potentially unusually strong FY2025 step-up that may be hard to sustain.

Income Statement

Revenue has compounded strongly over the period (about +77% from FY2020 to FY2025), with FY2025 showing a sharp step-up versus FY2024. Profitability is a clear strength: gross margin is consistently high (~64–67%) and net margin has expanded materially (from ~10% in FY2020 to ~28% in FY2025), driving a large increase in net income. The main caution is that the FY2025 growth and profitability jump looks unusually strong versus prior years, which can raise questions on sustainability.

Balance Sheet

The balance sheet is exceptionally conservative with effectively no debt in recent years and near-zero leverage throughout, reducing refinancing and interest-rate risk. Equity has grown substantially (from ~₹1.77B in FY2020 to ~₹5.31B in FY2025), supporting a stronger capital base. Returns are also strong (return on equity rising to ~35% in FY2025). The primary limitation is that with no liquidity ratios provided, short-term balance sheet flexibility cannot be fully assessed from the available data.

Cash Flow

Cash generation is positive, but conversion is mixed. In FY2025, operating cash flow (~₹0.78B) covers only ~65% of net income, and free cash flow is ~54% of net income—suggesting earnings are running ahead of cash generation. Free cash flow has also been volatile (notably down in FY2024 versus FY2023), even though FY2025 free cash flow improved versus FY2024. Overall, cash flow quality is good but less consistent than reported profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.57B	6.53B	5.77B	5.09B	4.37B	3.83B
Gross Profit	4.38B	4.39B	3.93B	1.70B	2.87B	2.46B
EBITDA	1.39B	1.60B	1.36B	1.08B	902.40M	718.40M
Net Income	1.83B	1.83B	876.60M	676.40M	514.80M	400.00M
Balance Sheet
Total Assets	0.00	6.58B	5.13B	4.19B	3.45B	3.03B
Cash, Cash Equivalents and Short-Term Investments	2.65B	2.66B	1.26B	1.15B	698.00M	403.60M
Total Debt	0.00	0.00	0.00	100.00K	9.40M	20.20M
Total Liabilities	-5.31B	1.27B	1.38B	1.12B	888.40M	869.40M
Stockholders Equity	5.31B	5.31B	3.75B	3.08B	2.56B	2.16B
Cash Flow
Free Cash Flow	0.00	418.30M	251.30M	580.90M	408.00M	497.60M
Operating Cash Flow	0.00	778.60M	943.60M	908.20M	647.50M	582.70M
Investing Cash Flow	0.00	-418.00M	-791.50M	-1.06B	-346.60M	-79.60M
Financing Cash Flow	0.00	-270.80M	-203.10M	-171.20M	-135.10M	-104.90M

RPG Life Sciences Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹33.24B	16.40	―	0.85%	―	―
ORCHPHARMA	64 Neutral	₹35.45B	67.84	―	―	-9.23%	-56.08%
AARTIDRUGS	57 Neutral	₹34.72B	17.44	―	0.24%	4.08%	31.52%
GUFICBIO	57 Neutral	₹30.69B	53.92	―	0.03%	7.78%	-34.68%
MOREPENLAB	57 Neutral	₹19.93B	20.21	―	0.49%	-0.29%	-29.04%
UNICHEMLAB	54 Neutral	₹26.36B	29.80	―	―	25.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

RPG Life Sciences Limited Corporate Events

RPG Life Sciences Board Clears Q3 and Nine-Month FY26 Unaudited Results

RPG Life Sciences Limited has announced that its Board of Directors, at a meeting held on 27 January 2026, approved the company’s unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. The results, along with the statutory auditors’ limited review reports, have been submitted to the stock exchanges in compliance with SEBI’s Listing Obligations and Disclosure Requirements, underscoring the company’s ongoing financial reporting and regulatory transparency to investors and other stakeholders.

RPG Life Sciences Posts Steady Q3 FY26 Growth With Robust Margins

RPG Life Sciences reported a 4.2% year-on-year rise in revenue to Rs 180 crore for the third quarter ended 31 December 2025, with an EBITDA margin of 24%, while nine-month FY26 revenue grew 4% to Rs 530.6 crore, underscoring steady operational momentum despite a slight sequential dip in quarterly revenue. Management highlighted that the Domestic Formulations business outpaced the broader Indian Pharmaceutical Market, growing 11.8% in the first nine months of FY26 versus IPM growth of 8.2%, and reiterated the company’s strategy of disciplined execution, portfolio optimisation and building a resilient, innovation-led, people-first organisation aimed at creating sustainable value for patients, partners and stakeholders.

RPG Life Sciences Forms Wholly Owned Subsidiary RPG Active Pharma

RPG Life Sciences Limited has incorporated a wholly owned subsidiary named RPG Active Pharma Limited, which was officially registered on December 24, 2025, under a new corporate identification number issued by the Ministry of Corporate Affairs. The move, disclosed under SEBI’s Listing Regulations, signals a further structuring of the group’s pharma operations and could provide a dedicated vehicle for future growth initiatives within active pharmaceutical or related businesses, offering greater strategic and operational flexibility for the company and its stakeholders.

RPG Life Sciences Unveils Strategic Leadership and Expansion Plans

RPG Life Sciences Limited announced significant strategic decisions following a board meeting on December 15, 2025. The company appointed Mr. Amol Lone as the new Chief Financial Officer, enhancing its leadership with his extensive experience in corporate finance and strategic decision-making. Additionally, the company plans to incorporate a wholly owned subsidiary, RPG Active Pharma Limited, to focus on the API business. This move includes transferring its existing API operations to the new entity and investing up to Rs.105 crore to support its growth and operations, signaling a strategic shift to strengthen its market position in the pharmaceutical sector.