Mumbai | 07-Oct-2025, 10:15 IST — Filed on 07-Oct-2025, 09:20 IST via BSE
Medico Remedies Ltd, a small-cap pharmaceutical manufacturer, has disclosed that it has received an overseas order from the public-sector health procurement authority of Turkmenistan. The order covers the supply of tablets, capsules, and dry syrups and has been classified as a material event under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR).
Order Details
The purchase order, while not fully quantified in the initial disclosure, is significant enough for the company to notify exchanges. Medico Remedies noted that execution will be carried out “within the shortest possible time,” indicating the urgency of the requirement and a relatively tight supply schedule.
The products span multiple dosage forms — a category that typically demands higher operational coordination given formulation-specific production and packaging requirements. The company’s existing WHO-GMP approved facilities in Maharashtra are expected to handle the manufacturing.
Why This Matters
For a company like Medico Remedies, which is in the process of scaling its export footprint, fresh international mandates can have a visible impact on quarterly revenues. Export orders from government-backed buyers in Central Asia not only provide volume stability but also open avenues for repeat contracts if delivery timelines and quality benchmarks are met.
Analysts tracking the sector suggest that such contracts also enhance a small-cap pharma company’s credibility in global tendering platforms, enabling participation in larger procurement rounds across CIS (Commonwealth of Independent States) and Middle East markets.
Key Watchpoints
- Shipment Schedule: Market participants will look for clarity on the timelines of the first dispatch, and whether supplies are staggered or in bulk.
- Forex Realisation: As Turkmenistan’s local currency has limited convertibility, disclosures on foreign exchange arrangements will be important.
- Working Capital: Pre-shipment financing or extended credit terms could impact the company’s short-term liquidity.
- Follow-on Orders: Execution quality in this contract could decide if the company receives repeat business in 2H FY26.
Company Profile: Medico Remedies Ltd
- Headquarters: Mumbai, Maharashtra.
- Business Focus: Manufacturer of tablets, capsules, ointments, syrups, injectables, and dry powders.
- Core Competence: Known for its cost-competitive formulations across therapeutic categories including antibiotics, analgesics, anti-inflammatory drugs, and nutritional supplements.
- Exports: Active in Asian, African, and Latin American markets; the Turkmenistan order adds a new geography to its footprint.
Products in Focus
The order includes tablets and capsules, which form the bulk of Medico Remedies’ revenue mix, and dry syrups, which are especially in demand in emerging markets for pediatric and general antibiotic use. These product lines require careful regulatory compliance and adherence to pharmacopeial standards to qualify for overseas public tenders.
Promoters & Shareholding
- Promoters: The company is primarily led by the Shah family, who continue to hold majority control.
- Governance: Over the past two years, the company has strengthened its compliance and disclosure standards, reflecting the growing role of exports in its topline.
Financial Performance (Recent Years)
- FY24: Revenue of ~₹205 crore; Net Profit of ~₹15 crore.
- FY25: Revenue crossed ~₹240 crore; Net Profit ~₹18 crore, with exports contributing ~22% of total sales.
- Q1 FY26: Reported revenue growth of ~12% YoY, driven largely by formulations and rising tender-based orders.
The latest Turkmenistan deal, if sizable, could lift the company’s export share beyond 25% of revenues by FY26-end.
Market Context
The announcement comes at a time when Indian pharma exporters are increasing their presence in Central Asia. Countries like Turkmenistan, Uzbekistan, and Kazakhstan are actively sourcing from Indian suppliers due to cost competitiveness and reliability compared to Western peers.
For Medico Remedies, participation in such contracts also improves brand positioning when competing against mid-tier Indian pharma peers like Morepen, Lincoln Pharma, or Caplin Point, which have already established export traction.
Outlook
- If executed smoothly, the order could open the door to a multi-year procurement relationship.
- Investors will closely track whether the company can convert this into a pipeline of export contracts in FY26.
- Management commentary in the upcoming quarterly earnings will be key to gauging the size, timelines, and expected margins of the Turkmenistan deal.
