Lucky Core Industries (LCI): Pharma Shines, But Core Businesses Struggle

Lucky Core Industries (LCI) just wrapped up its results for FY25, and the numbers tell an interesting story. While the company managed to grow earnings slightly, most of its traditional businesses struggled. The real star of the year? Pharma.

The headline numbers

• Earnings per share (EPS): Rs25.2 (↑ 4% YoY)
• Total Sales: Rs120bn (flat vs last year)
• Dividend: 50% payout ratio expected to continue
• Debt: None – LCI remains debt-free

Pharma segment, the growth engine

Pharma turned out to be the game-changer. Sales rose 72% YoY to Rs21bn, helped by the newly acquired Pfizer portfolio, which alone added Rs7.2bn. Pharma now makes up nearly a fifth of the company’s sales, with gross margins of around 38%. Management expects this to be the fastest-growing business in FY26 as well.

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Soda ash & polyester, pressured by weak demand

• Soda Ash: Sales fell 16% YoY due to slow demand from glass and construction. Exports also dropped by half. Capacity utilization was 80%. Prices stand at Rs 95k/ton, with expansion plans of 200k tons in the pipeline.
• Polyester: Revenue slipped slightly (↓1% YoY) with volumes down 7%. The weak textile sector and cheap imports weighed heavily. Volumes are expected to stay around 100k tons in FY26.

Other segments, mixed bag

• Animal Health: Sales down 10%, but profits improved as focus shifted to higher-margin products. A Rs633mn veterinary medicine plant is under construction, set to be ready by late 2026.
• Chemicals & Agri: Sales declined 2% due to liquidity issues in the farming sector and climate-related challenges.

What does this mean for investors?

LCI’s traditional strengths, like soda ash and polyester, are under pressure, but pharma is reshaping the company’s future. With no debt and strong cash flows, the company is well-positioned to invest in growth opportunities. Still, much depends on whether core segments recover and how fast pharma scales up.

Pharma is the new lifeline, but the core needs a revival.

Source: JS Global Capital Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →

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