Kalbe Farma (KLBF) Rebounds, Offering Promising Earnings and Share Prospects
Key Takeaways
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JAKARTA, investortrust.id — Pharmaceutical company Kalbe Farma has posted a solid financial recovery in the third quarter of 2025, with both revenue and profit showing double-digit growth. The improvement underscores the company’s resilience amid higher costs from BPJS pharmaceutical sales, changes in non-dairy nutrition product mix, and rising selling expenses.
Analysts from BRI Danareksa Sekuritas, Wilastita Muthia Sofi and Ismail Fakhri Suweleh, maintained their buy recommendation for Kalbe Farma shares with a target price of Rp 1,710. Similarly, Mandiri Sekuritas also reaffirmed its buy call with a target price of Rp 1,750 per share.
Kalbe Farma recorded revenue of Rp 8.9 trillion in the third quarter of 2025, up 8% quarter-on-quarter and 13% year-on-year. Net profit reached Rp 656 billion, down 27% from the previous quarter but still 15% higher than the same period last year. On a cumulative basis, net profit from January to September 2025 rose 11% to Rp 2.6 trillion, in line with the company’s full-year target.
According to BRI Danareksa Sekuritas, Kalbe Farma successfully revived all four business segments — Prescription Drugs, Consumer Health, Nutrition, and Distribution — with quarterly sales growth of 10%, 6%, 9%, and 7% respectively. This marks a reversal from the post-Lebaran slowdown in the previous quarter.
However, the brokerage noted that gross and operating margins declined due to a larger contribution from BPJS generic medicines, higher dollar-based raw material costs in the non-dairy nutrition segment, and a 21% quarterly rise in selling expenses.
Even so, BRI Danareksa Sekuritas highlighted that Kalbe Farma’s performance remains within its management’s guidance range of 6–8%, indicating that earlier concerns about the nutrition segment and prescription drug margin pressures are under control.
“Kalbe Farma is viewed as a defensive stock with stronger core earnings potential than peers, supported by a stable pharmaceutical portfolio and long-term healthcare demand driven by an aging population,” the report said. Based on the historical nine-month contribution of 74% to annual performance, Kalbe Farma is projected to post Rp 35 trillion in revenue and Rp 3.5 trillion in net profit for 2025.
Disclaimer: Valuation estimates by InvestingPro and analyst targets are based on publicly available data and market models as of October 2025. They do not constitute investment advice or a solicitation to buy or sell securities.
Mandiri Sekuritas expressed a similar view, noting that Kalbe Farma’s Q3 and nine-month results were broadly in line with estimates. The performance supports its forecast that full-year targets remain achievable.
Mandiri Sekuritas initially expected annual sales growth of 5%, but actual results showed a stronger 13% year-on-year rise, signaling a rebound in demand across healthcare and pharmaceutical products. While third-quarter net profit came in slightly below expectations due to higher operating expenses, the overall nine-month performance was within projections, reaffirming confidence in full-year profitability. As such, the brokerage maintained its buy rating with a price target of Rp 1,750 per share.
Valuation
Kalbe Farma’s current share price of Rp 1,330 remains below both analyst and InvestingPro's model-based fair value estimates, indicating a potential upside. According to consensus data from 15 analysts, the stock’s average target price stands at Rp 1,681, representing an upside potential of around 26% from current levels. Independent valuation models place the fair value slightly lower, at Rp 1,642, suggesting a 23.5% potential gain.
The valuation spread among models ranges between Rp 1,460 and Rp 2,198, reflecting generally low uncertainty. This aligns with the company’s strong financial health indicators, including top scores for cash flow and profitability. Although the stock trades at a relatively high price-to-earnings ratio compared to near-term earnings growth, it continues to attract investors as a defensive play in Indonesia’s healthcare sector.