Nureca Share Soars on Buyback Nod amid Past Pain

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Debt-free digital-first healthcare firm Nureca Limited rallies to ₹288.9 after SEBI approval for share buyback; posts 21% YoY revenue growth and margin expansion in Q2 FY26.

By S JHA

Mumbai, October 19, 2025 — Shares of Nureca Limited surged 20% on Friday to close at ₹288.9, after the company received SEBI approval to proceed with a share buyback even as its merger process remains pending. The company said its board will soon decide on next steps, boosting confidence amid a strong earnings turnaround and renewed investor interest.

The stock, which had fallen sharply from highs of ₹2,100 in previous years, saw robust trading volumes following the announcement. Nureca, a digital-first consumer healthcare company, operates in categories including home diagnostics, wellness devices, and personal fitness equipment through brands like Dr Trust and Dr Physio.

Financial Performance: Strong Q2 Turnaround

For the second quarter of FY26, Nureca reported a revenue of ₹37.74 crore, marking a 21% year-on-year (YoY) and 10.4% quarter-on-quarter (QoQ) rise. The company swung to a profit after tax (PAT) of ₹3.63 crore, compared to a loss of ₹0.48 crore a year ago.
EBITDA margins expanded by a massive 1,220 basis points to 14.8%, while other expenses declined 32.7% YoY, reflecting effective cost management. Nureca also posted a positive operating cash flow of ₹4.45 crore in H1 FY26, reversing a cash outflow from the previous year.

However, analysts at Frontwave Research flagged a few concerns, including data inconsistencies in H1 revenue reporting, a sharp drop in cash balances from ₹46.25 crore to ₹1.19 crore (offset by an increase in financial assets), and the recent resignation of the CFO, which could impact short-term sentiment.

Business Highlights: Digital-First and Debt-Free

Investor commentary on X (formerly Twitter) highlighted Nureca’s 93% revenue contribution from online channels, emphasizing its digital-first strategy. The company remains debt-free with a healthy liquidity position and is expanding its offline and omnichannel presence via major e-commerce platforms such as Amazon and Flipkart.

Its manufacturing subsidiary, Nureca Technologies, has been operational since April 2022, holding 13 CDSCO approvals, along with ISO and USFDA certifications. The Dr Trust 360 App, offering AI-based health reports and freemium tools, has 1.98 million users, while the flagship brand Dr Trust was ranked No.1 in home healthcare by the Economic Times.

The company recently acquired 40,000 shares of ITC Limited at ₹1.89 per share, worth ₹75,600, in a small-scale investment unrelated to its core business.

Market Context: Caution and Opportunity

Despite renewed optimism, retail investors remain cautious following past controversies involving market manipulation by TV stock analysts — an issue that had dented sentiment in several small-cap counters including Nureca last year.

Technically, Nureca’s stock has broken out above the ₹270 resistance zone, supported by strong volumes. Immediate resistance is seen near ₹300–₹310, while support lies around ₹260. Analysts view sustained closes above ₹300 as a signal for potential medium-term strength, provided earnings momentum continues.

With a robust balance sheet, improving profitability, and strategic expansion in the digital healthcare space, Nureca appears positioned for a potential re-rating — contingent on consistent disclosures, stable management, and clarity on the pending merger.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)