Supriya Lifescience tanks 12%; what's ailing this pharma stock?

Supriya Lifescience said proceedings were initiated against the personnel of the company under the NDPS Act, 1985 for a procedural lapse for a single export transaction of an identified producer.

Supriya Lifescience share price movement

 

Shares of Supriya Lifescience tanked 12 per cent to ₹863.50 on the BSE in Monday’s intra-day trade after the company said that judicial proceedings were initiated against a senior employee by the Special Investigation and Intelligence branch of the Customs Department.

 

Earlier on June 2, 2026, the stock price of the company plunged 14 per cent in intra-day deals.

 

The market price of Supriya Lifescience hit a 52-week high of ₹1,085.50 on June 1, 2026. It had hit a 52-week low of ₹545.65 on March 24, 2026.

 

At 02:19 PM; Supriya Lifescience was quoting 10 per cent lower at ₹881, as compared to 0.6 per cent rise in the BSE Sensex.

 

 

Intimation regarding judicial proceedings involving personnel of the company

 

Supriya Lifescience on Saturday, July 4, said the investigation has been initiated on July 3 against Sreekant Sreedharan, General Manager, Sales & Marketing officer of the Company by Special Investigation and Intelligence branch of Customs Department, subsequent to which judicial custody was granted by the Chief Metropolitan Magistrate (CMM) court till July 17, 2026.

 

“Proceedings have been initiated against the personnel of the Company yesterday under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985 for a procedural lapse for a single export transaction of identified product for which they said officer is under Judicial detention,” Supriya Lifescience said.

 

Based on information currently available with the company, the proceedings are not expected to have any material impact on the operations, financial position, or governance of the company. 

 

The company said it is evaluating the implications of the proceedings and is obtaining appropriate legal advice. The matter is before the competent court, and the company will take an appropriate action after examining all applicable legal provisions and implications, it added.

 

Supriya Lifescience further said that the company remains committed to maintaining the highest standards of corporate governance and regulatory compliance. The company is closely monitoring the developments in the case and any further material developments in the matter shall be disclosed to the stock exchanges in accordance with applicable laws and regulations, it added. 

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Supriya Lifescience outlook

 

Going forward, the management said the company’s focus remains on expanding the regulated market; while strengthening its competitive edge through backward integration, regulatory expertise and broad portfolio supported by growing customer traction and disciplined execution, the company is well positioned to capture long-term growth opportunities and deliver consistent value.

 

Meanwhile, analysts at Choice Institutional Equities expect Supriya Lifescience revenue to see exponential year-on-year (YoY) growth in June 2026 quarter (Q1FY27) due to a low base last year, sequential the growth is expected to be in high single digits. Margin may continue to contract as planned with the new facility scale-up cost. Good Laboratory Practice (GLP) and Contract Development and Manufacturing Organisation (CDMO) contract updates, new API molecule launches are keys factors to watch out for, the brokerage firm said in the sector report. 

 

Choice Institutional Equities in the Q4 result update said they continue to maintain a positive view on the company as it scales up for the next phase of growth. The key drivers include further expansion in Europe, launches in high-margin therapies across regions and ramp-up of the CDMO segment. While margin is likely to see a planned near-term contraction, the brokerage firm believes the company’s leadership in niche therapies and strong backward integration capabilities should support margin expansion from FY28E.  ====================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.