Windlas Biotech Ltd. (WINDLAS) AI Stock Analysis

• Market Cap: ₹15.36B
• Dividend Yield: 0.71%
• Average Volume (3M): 3.48K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.89
• Revenue Growth: 19.34%
• EPS Growth: 9.32%
• Country: IN
• Employees: 1,154
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 7.12
• Shares Outstanding: 21,136,883
• 10 Day Avg. Volume: 3,282
• 30 Day Avg. Volume: 3,478
• PEG Ratio: 8.12
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 132.80
• 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: 71 Outperform
• Price Target: ₹803.00 ▲(1.90% Upside)
• Action: Upgraded Date: 01/15/26
• Date: Action: Upgraded 01/15/26

The score is primarily driven by strong financial performance (growth and profitability with low leverage), partially offset by mixed technicals (negative MACD and price below long-term moving averages) and a valuation profile that is not especially cheap with a low dividend yield.

Positive Factors

Revenue Growth

Sustained revenue growth indicates durable demand for Windlas’s formulations and CDMO services, supporting scale and bargaining leverage with suppliers. Over a 2–6 month horizon this trend underpins predictable top-line expansion, enabling reinvestment in capacity and product development.

Improving Margins

Rising gross and EBITDA margins reflect lasting improvements in cost structure and operational execution, increasing cash conversion on sales. Margin expansion supports resilient earnings even if volumes moderate, improving free cash flow potential and funding for strategic initiatives.

Healthy Balance Sheet

Low leverage and a strong equity position materially reduce financial risk and preserve strategic optionality. This balance-sheet strength supports capex for capacity, withstands cyclical pharma demand, and reduces refinancing risk—durable advantages for medium-term stability.

Negative Factors

Operating Cash Flow Decline

A year-over-year decline in operating cash flow and volatile free cash flow growth can constrain sustainable reinvestment, dividend capacity, and buffer for unexpected costs. For a manufacturing-led CDMO, consistent cash conversion is critical for funding working capital and plant upgrades.

Slight Increase in Liabilities

Even with low overall leverage, a rising liability trend can signal growing supplier credit, accruals, or contingent obligations. If sustained, this can weaken liquidity ratios and increase balance-sheet risk, limiting flexibility for opportunistic investments or cushioning downturns.

Limited Customer Disclosure

Absence of disclosure on revenue split and client concentration is a structural risk for CDMO/contract manufacturing firms. Heavy reliance on a few customers would increase revenue volatility and weaken pricing power; lack of transparency makes risk assessment and revenue predictability harder.

Windlas Biotech Ltd. Business Overview & Revenue Model

Company Description

Windlas Biotech Limited operates as a contract development and manufacturing organization (CDMO). Its CDMO services include product discovery, product development, licensing, and commercial manufacturing generic products, including generic products. The company provides its CMDO products and services across a range of pharmaceutical and nutraceutical conventional, and novel products for customers who market such products under their own brand names to the end users. It also offers manufactures various domestic trade generics and over-the-counter brand product portfolio to cater to nutritional, ayurvedic, wellness, and personal care markets. The company's domestic trade generics and OTC brands products are distributed through the offline channel, such as distributors, stockists, retail pharmacies, and institutional tenders, as well as the online channel, such as various e-commerce platforms. It exports its products primarily to Vietnam, Myanmar, Sri Lanka, Thailand, the Philippines, Cambodia, Fiji, Trinidad & Tobago, and South Africa. The company was incorporated in 2001 and is based in Gurugram, India.

How the Company Makes Money

Windlas Biotech makes money primarily by manufacturing pharmaceutical finished-dosage formulations and supplying them to other pharmaceutical/healthcare companies under contract manufacturing and related arrangements. Under this model, customers (brand owners/marketers) place orders for specific formulations and quantities; Windlas manufactures, tests/quality-controls, and supplies the finished products (often as per customer specifications and regulatory requirements), earning revenue based on agreed pricing per unit/batch and volumes delivered. A second revenue stream comes from sales of products marketed under the company’s own brands/distribution, where Windlas earns revenue from selling these branded formulations into the market through its commercial channels. Additional earnings can arise from allied services associated with formulation development and manufacturing (e.g., product development/tech transfer, scale-up, and compliance-related manufacturing support) when such services are billed to customers. Specific details on the exact revenue split by segment, the names/terms of significant partnerships, or customer concentration are null.

Windlas Biotech Ltd. Financial Statement Overview

Summary

Strong overall financial health supported by solid income statement performance (revenue growth, improving gross/EBITDA margins, solid net margin) and a healthy balance sheet with low leverage. Cash generation is positive, but operating cash flow declined year over year and free cash flow growth has been volatile, slightly tempering the score.

Income Statement

Windlas Biotech Ltd. has shown strong revenue growth over the years with a significant increase from 2024 to 2025. The gross profit margin and EBITDA margin have also improved, indicating efficient cost management and operational performance. The net profit margin is solid, reflecting profitability. However, EBIT margin growth is moderate, suggesting potential areas for operational efficiency improvement.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity position, as evidenced by a favorable equity ratio. The debt-to-equity ratio is low, pointing towards conservative leverage, which limits financial risk. Return on equity is commendable, reflecting effective utilization of shareholder funds. However, the slight increase in total liabilities warrants careful monitoring.

Cash Flow

The cash flow statement shows robust operating cash flow, though there has been a decline from the previous year. Free cash flow remains positive, indicating surplus cash generation. The operating cash flow to net income ratio suggests strong cash earnings quality, although free cash flow growth has been fluctuating, highlighting potential volatility in cash availability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.30B	7.60B	6.29B	5.11B	4.63B	4.27B
Gross Profit	3.18B	2.88B	2.28B	1.81B	1.61B	1.52B
EBITDA	1.23B	1.12B	916.40M	701.91M	591.29M	361.68M
Net Income	673.21M	609.94M	581.87M	426.26M	380.89M	158.32M
Balance Sheet
Total Assets	8.14B	7.60B	6.26B	5.29B	4.91B	2.96B
Cash, Cash Equivalents and Short-Term Investments	2.61B	2.40B	2.04B	1.32B	1.76B	542.55M
Total Debt	312.09M	325.97M	36.41M	49.93M	66.37M	323.49M
Total Liabilities	2.80B	2.55B	1.76B	1.27B	962.33M	970.04M
Stockholders Equity	5.34B	5.06B	4.50B	4.02B	3.95B	1.99B
Cash Flow
Free Cash Flow	265.34M	159.93M	712.76M	-99.25M	-56.74M	56.07M
Operating Cash Flow	559.24M	681.87M	1.09B	609.65M	91.30M	114.54M
Investing Cash Flow	-437.62M	-740.64M	-920.68M	-141.10M	-1.55B	-201.98M
Financing Cash Flow	-123.71M	10.13M	-152.90M	-437.39M	1.30B	7.76M

Windlas Biotech Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 788.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WINDLAS, the sentiment is Negative. The current price of 788.05 is above the 20-day moving average (MA) of 745.53, above the 50-day MA of 783.40, and below the 200-day MA of 871.96, indicating a bearish trend. The MACD of -18.78 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 36.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:WINDLAS.

Windlas Biotech Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WINDLAS	71 Outperform	₹15.36B	27.93	―	0.71%	19.34%	9.32%
SMSPHARMA	70 Outperform	₹36.03B	29.96	―	0.13%	11.91%	36.92%
SAKAR	66 Neutral	₹11.66B	22.21	―	―	24.20%	55.01%
BAJAJHCARE	53 Neutral	₹9.90B	20.91	―	0.24%	13.04%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INDOCO	49 Neutral	₹17.66B	-18.14	―	0.08%	-2.81%	-444.69%

Windlas Biotech Ltd. Corporate Events

Windlas Biotech shareholders approve re-appointment and new independent directors via postal ballot

Windlas Biotech Limited has secured shareholder approval via postal ballot for key board appointments, including the re-appointment of Ashok Kumar Windlass as whole-time director from May 3, 2026, and the appointment of Vivek Dhariwal and Gaurav Gulati as independent directors from May 6, 2026. The resolutions were passed with the requisite majority through a remote e-voting process concluded on March 19, 2026, underscoring the company’s adherence to corporate governance norms and signaling continuity and stability in its leadership structure for investors and other stakeholders.

The company has filed the scrutinizer’s report and detailed voting results with the stock exchanges in line with SEBI’s listing regulations. These voting outcomes and the scrutinizer’s report have also been published on the company’s website and that of its registrar, enhancing transparency around shareholder decision-making and regulatory compliance.