Bharat Parenterals shares rally 25% in three sessions; Here is why stock is rising

Shares of Bharat Parenterals, the Vadodara-based pharmaceutical manufacturing and formulation company, rose for a third straight session on Friday, September 25. In intraday deals, Bharat Parenterals shares were locked in a 20% upper circuit at its 52-week high of ₹1,895.10 on the BSE. On the National Stock Exchange, the stock surged by its daily maximum limit of 20% and touched its 52-week high of ₹1,898.

Bharat Parenterals stock came under heavy demand after the company informed exchanges that its board will meet on Tuesday, September 29, to consider fund raising via preferential issuance of equity shares. The company, however, did not disclose the amount it plans to raise vial preferential issue of shares.

"We wish to inform you that a meeting of the Board of Directors of Bharat Parenterals Limited (“the Company”) is scheduled to be held on Tuesday, September 29, 2026 inter alia, to consider and evaluate and if thought fit, to approve the proposal for issuance of equity shares or such other eligible securities by way of Preferential Issue and other incidental business matters, if any," Bharat Parenterals said in a regulatory filing.

The company added that trading in its securities by designated persons and their immediate relatives will remain closed till the expiry of 48 hours from the conclusion of the above said meeting.

Bharat Parenterals Q1 earnings

Bharat Parenterals in last month said that its net profit in the first quarter of current financial year dropped 64% to ₹3.65 crore from ₹10 crore in the same period last year.

Its revenue from operations declined 42% to ₹55 crore at the end of June quarter as against ₹94 crore in the year-ago period. The company said that decline in revenue was because of base effect as the company in Q1FY26 was the largest revenue quarter in the Company’s history, equal to 40% of FY26 revenue of ₹234.0 crore and 61% above the FY26 quarterly average of ₹58.5 crore.

"Q1FY26 top line carried the opening tranche of the ₹210 crore institutional order (delivery spread over eighteen months starting April 2025) whose closing tranche fell in Q1FY27," Bharat Parenterals said in an earnings release.

The company reported weak operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 61% to ₹6 crore from ₹15 crore and EBITDA margin contracted by 540 basis points to 10.8%.

As of 2:21 pm, Bharat Parenterals shares were locked in 20% upper circuit and there were pending buy orders for 10,127 shares while no seller was seen on the NSE.