On 1 July 2025, Welcure Drugs & Pharmaceuticals Limited's share price hit the 5% upper circuit as of 9:59 am. The rally follows the company’s disclosure of securing significant export sourcing orders totalling ₹85.6 crore.
Let us break down the key developments from the recent press release.
Welcure Drugs & Pharmaceuticals announced the execution of 2 export sourcing assignments worth approximately ₹42.8 crore each. These contracts have been finalised with overseas entities, Giant Exim and Ravina International, for the procurement and consolidation of mycorrhizal inoculants in bulk packaging on an EXW (Ex Works) basis.
The export assignments follow a fee-based model, allowing Welcure to generate revenue without bearing inventory or logistics risks. Commission income will be recognised upon dispatch of each consignment, thereby supporting margin improvement during the current quarter. This structure aligns with the company’s strategy of scaling revenue without adding operational burden or leveraging balance sheet risk.
Welcure is also engaged in advanced talks with other international buyers for similar export assignments. As per the release, the company anticipates concluding further contracts valued at ₹20 crore or more within the same quarter, subject to routine commercial processes. This points towards a robust pipeline that may support consistent earnings visibility.
Welcure Drugs & Pharmaceuticals share price locked in the 5% upper circuit early on 1 July 2025, reacting positively to a regulatory filing made the previous day.
Read More: Gabriel India Share Price Hits 20% Upper Circuit After Strategic Business Restructuring Announcement!
The company confirmed that these transactions fall within the ordinary course of business and are not related-party transactions. Welcure has maintained its focus on expanding its export portfolio in a disciplined manner, reaffirming its commitment to a debt-free capital structure and prudent financial governance.
The recent developments signal Welcure Drugs & Pharmaceuticals Limited’s increasing footprint in global sourcing assignments. The fee-based model with no exposure to inventory or delivery risks marks a strategic approach to scaling revenue.
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Published on: Jul 1, 2025, 10:13 AM IST
Team Angel One
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