Highlights
| Issue Size – 28,402,040 shares | Issue Open/Close – 09 Oct / 13 Oct, 2025 |
| Price Band (Rs.) 461 – 485 | Issue Size (Rs.) ~ 13,775 mn |
| Face Value (Rs) – 1 | Lot Size (shares) – 30 |
Rubicon Research Limited (RRL) incorporate in 1999, is a pharmaceutical formulations company, focused on innovation through R&D, with a growing portfolio of specialty and drug-device combination products. Its business is entirely focused on regulated markets, especially the United States
Company has a portfolio of 72 active ANDA and nine NDA products approved by, and one over-the-counter monograph listed with, the USFDA, 17 new products awaiting USFDA ANDA approval and 63 product candidates in development.
As of June 30, 2025, company’s manufacturing services have cumulative formulations manufacturing capacity of 10,226.6 million tablets of oral solid dosages p.a., 3,459.1 kiloliters p.a. of oral liquid dosages p.a., 4.1 million tubes p.a. and 24.8 million bottles/micro-vials of nasal sprays p.a.
Out of the total proceeds of Rs. 13,755 mn, ~Rs. 3,100 mn would go towards repayment of long-term borrowings, ~Rs. 1,900 mn would go towards capex. While ~Rs. 8,775 mn would go towards existing selling shareholders of the company.
Key Highlights
- According to market forecasts, the global pharmaceutical market is projected to grow at a CAGR of 6.7 pct from 2024 to 2029F, measurably higher than the historical average growth rate of 6.3 pct observed between 2019 and 2024.
- The ccompany has 170 scientists in India and Canada driving formulation development. The Thane facility (38,421.7 sq. ft.) houses three specialized labs and was US FDA-inspected in March 2025. The Ontario facility (13,609.7 sq. ft.) focuses on nasal and inhalation products and was last inspected in October–November 2023
- The company and its subsidiaries have 72 active ANDAs and nine NDAs approved by the US FDA. They have commercialized 86.4 pct of their ANDAs, with products marketed in the US by wholly-owned subsidiaries AdvaGen Pharma and Validus, as well as third-party distributors. Validus specifically markets two CNS therapy brand-name products without any approved generics.
- RRL has 48 product applications filed or registered across Australia, the UK, Singapore, Saudi Arabia, and the UAE, with commercial launches planned after approvals; it also provides contract manufacturing for select customers in India, Australia, and New Zealand.
- The company’s core strategies include (i) Grow its portfolio of specialty products and drug-device combinations (ii) continue to develop new products and build leadership positions in regulated markets for generic products (iii) Expand its US market presence and leverage its intellectual property and product portfolio in other key regulated markets (iv) pursue synergistic business development and external innovation opportunities.
- Sales of the company has grown by 81 pct CAGR in over FY23-25 and EBITDA grew by 272 pct CAGR over same period. During FY25 the sales of the company jumped by 50.4 pct YoY to Rs. 12,843 mn. While EBITDA of the company grew by 65.6 pct YoY to Rs. 2,559 mn and EBITDA margin expanded by 182 bps to 19.9 pct YoY in FY25. During FY25, the company reported profit of Rs. 1,344 mn, which grew 47.6 pct YoY.
Key Risk
- Company derived ~95 pct of their sales from the United States for the last 3 years and any adverse developments in the United States such as imposition of tariffs could have an adverse effect on RRL business
- Company might face client concentration risk as it is highly depended on its top 5 customers as they contribute around 60 to 70 pct of their total sales.
- RRL’s products are subject to stringent quality and regulatory standards and any failure to maintain these standards may have an adverse impact on the company’s performance.
Financial Performance
| Particulars | FY23 | FY24 | FY25 |
| Sales (Rs. mn) | 3935 | 8539 | 12843 |
| EBITDA (Rs. mn) | 185 | 1546 | 2560 |
| EBITDA Margin % | 4.7% | 18.1% | 19.9% |
| Profit (Rs. mn) | -169 | 910 | 1344 |
| Profit Margin % | -4.3% | 10.7% | 10.5% |
| R&D as % of Total Income | 17.4% | 12.7% | 11.4% |
| ROCE % | 1.4% | 18.6% | 26.5% |
Peer Comparison based on FY25 Financials
| Peer Comparison | Rubicon Research | Sun Pharma | Aurobindo Pharma | Strides Pharma |
| Sales (Rs. mn) | 12,843 | 5,45,435 | 3,23,456 | 46,241 |
| EBITDA (Rs. mn) | 2,559 | 1,65,589 | 71,730 | 9,280 |
| EBITDA Margin % | 19.9% | 30.4% | 22.2% | 20.1% |
| Profit (Rs. mn) | 1,344 | 1,09,801 | 34,836 | 4,094 |
| Profit Margin % | 10.5% | 20.1% | 10.8% | 8.9% |
| R&D as % of Total Income | 11.4% | 6.0% | 1.5% | 1.6% |
| ROCE % | 26.5% | 26.8% | 15.6% | 23.6% |
Valuation
Rubicon Research is a pharmaceutical formulations company, driven by innovation through focused research and development, with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets. With 72 active NDAs and ANDAs, Rubicon Research has widened its portfolio of formulations by including oral capsules, concentrates, solutions, suspensions, syrupsetc. At the upper end of the price of Rs. 485, the issue quotes PE of 59x on FY25 earnings. The issue looks fully priced. One May Subscribe for listing gains.
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