Recently listed Molbio Diagnostics found itself on the wrong side of a sharp reversal on Wednesday, September 16, as investors rushed to book profits following a blistering run that had seen the healthcare stock deliver strong returns in a short span.
The stock declined for the second consecutive session, falling as much as 8.8% to hit an intraday low of ₹1,229.65 per share on the BSE. The latest decline came even as the broader Indian stock market maintained a positive trend.
Molbio Diagnostics had gained 13% in the last 1 week, defying the broader market sentiment. However, the latest sell-off has erased a significant portion of those recent gains, with the stock now down 18.5% over the last two sessions.
Molbio Diagnostics stock still up over 50% from IPO price
Despite the sharp correction, Molbio Diagnostics shares continue to trade substantially above their initial public offering price. The stock, which made its market debut on August 17 this year, is currently up more than 50% from its issue price of ₹807.
The shares listed at ₹980, representing a 21.44% premium over the IPO price of ₹807.
The recent correction follows an exceptionally strong run after listing. In the last 1 month, Molbio Diagnostics shares have gained 75%, underscoring the scale of the rally that preceded the latest bout of profit booking.
The stock touched its 52-week high of ₹1,686.50 on September 11, just last week. At the other end of the range, its 52-week low stands at ₹925.80, recorded on August 17, which was also its listing date.
Financial performance
Molbio Diagnostics share price has remained in focus after the recently listed healthcare stock delivered a sharp financial turnaround in the first quarter of FY27. Before profit booking, Molbio Diagnostics shares had been defying the broader market trend, supported by robust year-on-year earnings growth and an upbeat full-year outlook from the management.
For the April-June quarter of FY27, Molbio Diagnostics reported a consolidated net profit of ₹58.74 crore attributable to the owners of the company, compared with a net loss of ₹23.74 crore in the corresponding quarter of the previous year.
The turnaround was supported by a 309% year-on-year increase in revenue from core operations to ₹408 crore, compared with ₹100 crore a year ago. The company also turned operational earnings before interest, tax, depreciation and amortisation (EBITDA) positive, reporting ₹101 crore.
As a result, the EBITDA margin stood at 25.20%, compared with -14.43% in the year-ago quarter.
For FY27, Molbio Diagnostics management has guided for 25% topline growth, while expecting the EBITDA margin to remain in the 24-25% range.
The management highlighted that the business does not follow a linear quarterly pattern because of public health procurement dynamics and said investors should assess performance on an annual basis.
With gross margins of 60-63% across its devices and test kits, Molbio Diagnostics expects to tap the point-of-care (POC) diagnostics market, valued at $30 billion and growing at a 17.9% CAGR. Management also said capacity is not a constraint, with automation and R&D centres remaining key focus areas using proceeds from the IPO.
Molbio Diagnostics IPO: How much have investors made?
Molbio Diagnostics shares listed on the NSE at ₹980 per share on August 17, 2026, a 21% premium to the ₹807 issue price, according to exchange data.
At the NSE listing price, investors earned ₹17,640 per lot of 18 shares, against an initial investment of ₹14,526 per lot.
Since its August 17 listing, Molbio Diagnostics shares have delivered 52% returns on investment to investors.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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