Board Meeting Outcomes

The Board of Directors at its meeting held on November 14, 2026, at the Corporate Office (63, Industrial Area, Phase-2, Panchkula, Haryana) approved:

1. Unaudited Standalone Financial Results for half-year ended September 30, 2026, prepared in accordance with Indian Accounting Standards (Ind AS), along with Limited Review Report from Statutory Auditors

2. Unaudited Consolidated Financial Results for half-year ended September 30, 2026, prepared in accordance with Indian Accounting Standards (Ind AS), along with Limited Review Report from Statutory Auditors

3. Related Party Transaction with Longevity Science Private Limited for business transactions up to ₹12 crore during FY 2026-27, subject to applicable provisions of Companies Act, 2013 and SEBI LODR Regulations

The Board noted the company's voluntary adoption of Indian Accounting Standards (Ind AS) with effect from April 01, 2026.

The meeting commenced at 12:00 Noon and concluded at 03:28 P.M.

Financial Performance Highlights (Consolidated, H1 FY27)

Key Financial Metrics:

  • Revenue from Operations: ₹95.86 crore (+44.6% YoY, +17.9% HoH)
  • Total Income: ₹96.21 crore (+44.9% YoY, +17.7% HoH)
  • Gross Profit: ₹36.04 crore (+103.4% YoY, +14.5% HoH)
  • Gross Margin: 37.6% (+1,086 bps YoY, -113 bps HoH)
  • EBITDA: ₹13.20 crore (+140.7% YoY, +54.5% HoH)
  • EBITDA Margin: 13.8% (+550 bps YoY, +326 bps HoH)
  • Profit After Tax: ₹4.82 crore (+153.3% YoY, +87.7% HoH)
  • PAT Margin: 5.0% (+216 bps YoY, +187 bps HoH)

Comparative Performance (₹ crore):

| Metric | H1 FY27 | H1 FY26 | YoY Change | H2 FY26 | HoH Change |

| Revenue | 95.86 | 66.29 | +44.6% | 81.29 | +17.9% |

| Total Income | 96.21 | 66.39 | +44.9% | 81.73 | +17.7% |

| Gross Profit | 36.04 | 17.72 | +103.4% | 31.48 | +14.5% |

| EBITDA | 13.20 | 5.48 | +140.7% | 8.55 | +54.5% |

| PAT | 4.82 | 1.90 | +153.3% | 2.57 | +87.7% |

Balance Sheet and Debt Position (as of September 30, 2026)

Key Metrics:

  • Gross Borrowings: ₹57.15 crore (Mar 2026: ₹43.00 crore, Sep 2025: ₹39.05 crore)
  • Net Worth: ₹72.19 crore (Mar 2026: ₹67.30 crore, Sep 2025: ₹65.38 crore)
  • Debt to Equity: 0.79x (Mar 2026: 0.64x, Sep 2025: 0.60x)
  • EBITDA (last 12 months): ₹21.75 crore (FY26: ₹14.03 crore)
  • Debt to EBITDA (last 12 months): 2.6x (Mar 2026: 3.1x)

Working Capital Metrics:

  • Receivable Days: 101 days (Mar 2026: 121 days, Sep 2025: 146 days)
  • Inventory Days: 83 days (Mar 2026: 83 days, Sep 2025: 72 days)
  • Payable Days: 77 days (Mar 2026: 100 days, Sep 2025: 68 days)
  • Net Working Capital Days: 107 days (Mar 2026: 104 days, Sep 2025: 150 days)

The company stated it will maintain debt to EBITDA (last 12 months) at or below 3x and debt to equity at or below 1x.

Significant Events and Operational Highlights

Factory Fire Incident:

  • A major fire occurred at the company's factory premises on April 27, 2026
  • Resulted in substantial damage to factory building, plant and machinery, inventories and other assets
  • Exceptional loss of ₹0.46 crore recognized for uninsured portion of inventory loss
  • Insurance claim of ₹5.50 crore (₹5,49,93,185) filed, pending final assessment and settlement
  • Input Tax Credit (ITC) of ₹0.84 crore (₹84,49,225) reversed for inventories destroyed in fire
  • Reconciliation process for GST mismatches and unavailed/reversed ITC ongoing
  • Incident affected plant operations but did not adversely affect going concern status

Regulatory Audits:

  • Five regulatory audits conducted in September 2026 slowed plant operations
  • Some dispatches moved into Q3 FY27 due to audit-related disruptions

Business Updates:

  • OTC portfolio growing approximately 5% month-on-month
  • Successful launch of Young Fuel anti-ageing cream in H1 FY27
  • Tablet output capacity increased by 35%
  • Plant compliant with revised Schedule M and WHO-GMP standards

Export Market Expansion:

  • Appointed distributors in Guatemala and Panama
  • Export network now covers nine markets across Central America, South America, and Caribbean
  • 95 dossiers filed in Nicaragua, Bolivia, Guatemala, and Panama
  • Plant inspection completed in Ghana; inspections in Ethiopia and Kenya expected shortly

Related Party Transaction

Longevity Science Private Limited:

  • Proposed business transactions up to ₹12 crore during FY 2026-27
  • Company proposes to subscribe to 51% share capital of Longevity Science
  • Upon completion, Longevity Science will become a subsidiary of Astonea Labs
  • Transaction subject to completion of corporate, statutory and regulatory formalities
  • Constitutes non-adjusting event subsequent to reporting period (incorporated October 8, 2026)

Accounting Standards Transition

Ind AS Adoption:

  • Voluntarily adopted Indian Accounting Standards (Ind AS) from April 1, 2026
  • First financial results prepared under Ind AS framework
  • Comparative figures for previous periods restated under Ind AS
  • Transition date: April 1, 2025

Key Transition Adjustments:

  • Recognition of Right-of-Use assets and lease liabilities under Ind AS 116
  • Expected Credit Loss (ECL) provision on trade receivables under Ind AS 109
  • Fair valuation of security deposits
  • Derecognition of internally generated brand (not eligible for recognition under Ind AS 38)
  • Revaluation of land and building to fair value
  • Actuarial valuation of gratuity provisions with gains/losses recognized in OCI
  • Deferred tax accounting using balance sheet approach

Subsidiaries and Associates

Damaira Pharmaceuticals Private Limited (Associate):

  • Included in consolidated financial results
  • Total assets: ₹885.59 crore as of September 30, 2026
  • Revenue: ₹236.92 crore for half-year ended September 30, 2026
  • Net profit: ₹3.25 crore for half-year ended September 30, 2026
  • Financial statements prepared under IGAAP (while parent uses Ind AS)

Astonea LLC (Wholly-owned foreign subsidiary):

  • Incorporated in Sheridan, Wyoming, United States of America
  • No capital subscribed/invested as of reporting date
  • No business operations commenced
  • Not consolidated in current financial results

Outlook and Guidance

FY27 Targets:

  • Revenue: ₹215 crore or more
  • EBITDA Margin: 13-15%
  • PAT Margin: 5-6%
  • H2 FY27 revenue requirement: ~₹119 crore (up 47% YoY on H2 FY26)

Long-term Targets:

  • FY28 Revenue: ₹300 crore or more
  • FY29 Revenue: ₹405 crore or more
  • Approximately 40% CAGR from FY26
  • Growth expected from OTC brands in India and export market expansion
  • ~60 product registrations expected in export markets in Q1 FY28

Auditor's Limited Review Report

Statutory Auditors: Avnish Sharma & Associates, Chartered Accountants

  • Conducted limited review of unaudited financial results
  • Issued unmodified conclusion with emphasis of matter
  • Peer Review Certificate No. 016702

Emphasis of Matter:

1. Factory fire incident and insurance claim recognition

2. GST reconciliation process and potential financial impact

3. Inclusion of associate company financials prepared under IGAAP

4. Pending internal audit report for half-year ended September 30, 2026