Summary of Key Information:

Reporting Period (Quarter/Year): Quarter ended 30 June 2026 (Q1 FY27)

Nature of Filing / Announcement: Outcome of Board Meeting - Financial Results and Corporate Actions

Date of Board Meeting / Approval: 5 August 2026

Audit Opinion: Unmodified conclusion from statutory auditors

Auditor's Comment: No material misstatement found in the financial results

Key Financial Highlights [₹ in Crores]

Standalone Results:

Revenue from Operations: ₹359.89 crores (down from ₹483.58 crores in Q1 FY26, -25.6% YoY)

Total Income: ₹372.05 crores

Net Profit: ₹1.41 crores

EPS: Basic and Diluted ₹0.04 (not annualized)

Other Equity: Not separately specified in standalone

Cash and Cash Equivalents: Not separately specified in standalone

Debt: Not separately specified in standalone

Consolidated Results:

Revenue from Operations: ₹4,223 million (₹422.3 crores) as per press release, down 23.1% YoY

Total Income: Not separately specified in consolidated

Net Profit: Net loss of ₹430 million (₹43.0 crores) attributable to shareholders

EPS: Not specified in consolidated

Other Equity: Not separately specified

Cash and Cash Equivalents: ₹4,589 million (₹458.9 crores) including liquid investments

Debt: Gross borrowings of ₹2,077 million (₹207.7 crores)

Financial Performance Analysis:

  • Material deterioration in both revenue and profitability compared to prior comparable period
  • Gross margins contracted to 71.5% from 73.0% in Q1 FY26
  • CDMO business contribution reduced to 38% of revenue
  • Negative operating leverage and subsidiary consolidation impacted EBITDA

Segment-wise Performance:

Single Operating Segment: Contract Development and Manufacturing Operations (CDMO) as per Ind AS 108

Segment Breakdown:

  • Pharma CDMO: Affected by shipment phasing and order timing
  • API+ segment: Declined 10.4% YoY due to timing-related factors
  • Specialty Chemicals: Declined 34.7% YoY, led by H2-weighted phasing in Agrochemicals
  • Sapala Organics: Strong growth with 2.5x YoY revenue increase
  • NJ Bio: Reported adjusted EBITDA loss of ₹328 million

Corporate Actions:

Dividend: Not declared

Reorganization: Board approved entering into amendment agreement(s) to acquire additional stake in Sapala Organics Private Limited

  • To acquire 21% equity stake after Sapala's FY27 results (March 2027)
  • To acquire remaining 28% equity stake after Sapala's FY30 results (March 2030)
  • Will eventually hold 100% of Sapala's equity share capital

Other Significant Information:

Strategic Initiatives:

  • Building integrated nucleic-acid business with path to full ownership of Sapala
  • Repositioning Agrochemicals towards innovator-product-led portfolio
  • Focus on customer conversion, predictable delivery, and quality

Operational Highlights:

  • Pharma CDMO: Two molecules commercialized with deliveries scheduled across Q2 and Q3
  • Significant restocking order secured for commercial molecule
  • One product advanced to Phase III program
  • ADC payloads and linkers showing customer interest
  • Nucleic acids: Shipments commenced under specialized building-block program
  • API business: Received validation orders, secured two CEP approvals, filed two Korean DMFs
  • Capex: ₹598 million deployed during the quarter
  • Net cash position: ₹2,512 million as of 30 June 2026

ESG Achievements:

  • EcoVadis Gold Rating (up from Silver)
  • British Safety Council International Safety Award 2026 (Merit)
  • SBTi validation for greenhouse gas emissions reduction targets
  • 7 MWp solar power plant commissioned at Ankleshwar

Forward-looking Guidance:

  • Q2 expected to be better than Q1
  • Year-on-year growth expected from second half of FY27
  • Growth supported by secured orders, scheduled deliveries, and late-stage pipeline progress
  • EBITDA improvement weighted towards second half