36% to 20%: Healthcare stock in focus after promoter reduces pledge to 20%

Synopsis: The shares of this small-cap healthcare stock were in focus as the promoter reduced its pledged stake from 36.13% to 20% due to the improved balance sheet of the company, bringing investor trust and confidence along with potential growth prospects. 

The shares of this company, which is India’s premier manufacturer of male and female condoms, personal lubricant, and IVD kits, were in the news following the promoter reducing the pledge, bringing investor confidence along with strengthening its fundamentals. 

With the market cap of Rs 12,666 crore, the shares of Cupid Ltd had hit their intraday high at Rs 475.15, gaining about one per cent compared to their previous day’s closing price of Rs 469. The shares are trading at a PE of 204, whereas their industry PE is at 50.

About the Reduction in Pledged Shares.

Cupid Limited has announced the reduction of the promoter and the promoter group pledge, wherein the encumbered shares were reduced from 36.13% to 20% as of September 30, 2025, which is an important step in improving its ownership and financial structure.

A decrease in promised shares of this magnitude is usually regarded as an indication of good governance because it reduces promoter-level leveraging and potential risks associated with forced sales triggered by market instability.

This was attributed to the improved balance sheet of the company, according to the announcement made by the entity. The management explained the reduced pledging level by asserting that it shows confidence in the growth prospects of the company. Reduced pledging could have an indirect positive relationship with investors, as it improves investor confidence in the financials of an entity.

Apart from the breaking news of the immediate pledge commitment, Cupid is also improving the business fundamentals. The company has been adding capacities in order to achieve an increase of 1.5 times due to a land acquisition in the state of Maharashtra and has an excellent international presence with shipments to over 110 countries with contracts with international health organisations.

Financials and about the company. 

The revenue from operations for the company stands at Rs 90 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 47 crores, up by about 91 per cent YoY. Similarly, the net profit stood at Rs 24 crore in Q2 FY26, up from Rs 10 crore in Q2 FY25, giving a growth rate of about 140 per cent YoY. 

Cupid Limited, established in the year 1993, is one of the leading manufacturing brands in India within the wellness and personal care industry, primarily acknowledged for male and female condoms, water-based personal lubricants, and IVD kits. The company, in its journey, has reached out to other products of the FMCG segment, such as deodorants, perfumes, almond hair oil, body oils, petroleum jelly, and other wellness products, apart from their core products related to public health. 

The group boasts an extensive global footprint and also has the distinction of being the world’s first organisation to have qualified as WHO/UNFPA-approved manufacturers of male and female condoms, an indispensable factor in taking part in global bids related to health.

Keeping with the growth plans, Cupid has expanded its portfolio of products into perfumes, perfumed pocket bottles, toilet sanitisers, products related to hair and body care, and face wash, thus diversifying its sources of revenue generation. These dual strengths of Cupid place it as an unmatched player within the ‘Wellness & Personal Care’ segment.

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