Financial Performance Highlights

Consolidated Performance (₹ in Lakhs)

Lyka Labs reported a consolidated net loss of ₹104.36 crore for FY26, a significant deterioration from a profit of ₹79.33 crore in FY25. This was primarily driven by a substantial impairment charge of ₹230.14 crore on investments in and loans given to subsidiary Lyka BDR International Limited.

Key Consolidated Figures:

  • Revenue from Operations: ₹1,243.49 crore (FY26) vs ₹1,335.64 crore (FY25)
  • Total Expenses: ₹1,437.22 crore (FY26) vs ₹1,296.02 crore (FY25)
  • Finance Costs: ₹33.32 crore (FY26) vs ₹22.73 crore (FY25)
  • Employee Benefits Expense: ₹418.49 crore (FY26) vs ₹346.33 crore (FY25)
  • Total Comprehensive Income: ₹(105.80) crore attributable to owners
  • EPS: ₹(2.81) (FY26) vs ₹2.22 (FY25)
  • Total Equity: ₹551.41 crore with retained earnings of ₹(1,392.96) crore

Standalone Performance (₹ in Lakhs)

  • Total Revenue: ₹12,487.97 (FY26) vs ₹13,745.74 (FY25)
  • Profit/(Loss) before Exceptional Items: (₹1,022.09) (FY26) vs ₹1,110.16 (FY25)
  • Exceptional Items: ₹2,301.44 (impairment charge)
  • Profit/(Loss) after tax: (₹3,228.84) (FY26) vs ₹791.81 (FY25)

Key Corporate Developments

Merger with Lyka Exports Limited

The Hon'ble NCLT, Ahmedabad Bench sanctioned the Scheme of Amalgamation on March 16, 2026, with an appointed date of April 1, 2022 (retrospective) and effective date of April 8, 2026. The merger was accounted for using the pooling of interests method as per Ind AS 103.

Merger Details:

  • Share Swap Ratio: 23 equity shares of Lyka Labs for every 100 equity shares of Lyka Exports
  • Shares to be allotted: 4,62,711 equity shares of ₹10 each (shown as "Shares pending issuance" of ₹4.63 crore)
  • Accounting Impact: Capital reserve deficit of ₹14.32 lakhs recognized
  • Assets/Liabilities Transferred: Added Deferred Tax Assets (₹7.06 lakhs), Current Assets (₹7.07 lakhs), Cash (₹4.42 crore), and assumed liabilities including Deferred Tax Liabilities (₹8.64 lakhs)

Subsidiary Performance

Lyka BDR International Limited reported a net loss of ₹116.18 lakhs on revenue of ₹1015.86 lakhs, with a negative net worth of ₹(2,699.17) lakhs. The company holds a 65.22% stake in this subsidiary.

AGM Details and Corporate Governance

47th AGM Details:

  • Date: August 10, 2026 | Time: 12:30 PM
  • Mode: Video Conferencing/Other Audio Visual Means (VC/OAVM)
  • Record Date: August 3, 2026 | Book Closure: August 4-10, 2026
  • E-voting: August 6-9, 2026 via NSDL

AGM Agenda Items:

1. Adoption of audited financial statements and reports for FY 2025-26

2. Appointment of Mr. Shashil Philip Mendonsa as director retiring by rotation

3. Ratification of cost auditor remuneration for FY26 and FY27 (₹1,60,000 + taxes each)

4. Approval of material related party transactions with IPCA Laboratories Limited for FY 2026-27 up to ₹75 crores

Related Party Transactions

IPCA Laboratories Limited, holding 40.98% promoter stake, proposed transactions worth ₹75 crores for FY 2026-27, representing 58.39% of consolidated turnover. This includes sale/purchase of goods (₹55 crores) and inter-corporate deposits (₹20 crores). Historical RPTs with IPCA were ₹29.18 crores in FY 2025-26.

Financial Position and Cash Flows

Cash Flow Statement (` in lakhs):

  • Operating Activities: ₹524.28 (Net cash generated)
  • Investing Activities: ₹(941.38) (Net cash used, including fixed asset purchases of ₹1,113.05)
  • Financing Activities: ₹418.61 (Net cash generated, including net borrowings of ₹1,076.91)
  • Cash and Equivalents: ₹135.91 (including ₹102.17 in lien deposits)

Capital Structure:

  • Authorized Share Capital: ₹59 crores (increased from previous)
  • Issued Capital: ₹35.69 crores (3,56,90,000 equity shares of ₹10 each)
  • 10% Redeemable Preference Shares of ₹108.57 lakhs redeemed during the year

Operational and Regulatory Highlights

  • Export business impacted by exhausted government tender budgets and foreign exchange fluctuations
  • Domestic business focusing on building brands in human and veterinary segments
  • R&D focus on lyophilised injections, liquid injections, and topical preparations
  • New FertiNova division for gynaecology and Assisted Reproductive Technology
  • 50% lyophilisation capacity upgrade expected in calendar year 2026
  • 24 new registration applications submitted, 2 products registered, 5 renewals received

Contingent Liabilities and Legal Matters

Significant contingent liabilities include:

  • Drug Price Control Order demands: ₹680.62 lakhs (₹1,032.45 lakhs deposited under protest)
  • Sales Tax demands: ₹897.85 lakhs across Gujarat and Maharashtra
  • Income Tax demands: ₹100.76 lakhs
  • Employee claims: ₹433.66 lakhs
  • Cheque dishonor cases: ₹124.26 lakhs deposited as interim compensation

Various tax and regulatory matters remain under dispute at different appellate levels.

Auditor Appointments

  • Statutory Auditors: M/s. D. Kothary & Co. (appointed for second term, FY26 fee: ₹19.50 lakhs)
  • Cost Auditors: M/s. Nidhi Subhash Tibrewala & Co. (appointed w.e.f. March 31, 2026)
  • Secretarial Auditors: M/s. Kaushal Doshi & Associates (first term from FY 2025-26 to FY 2029-30)

Internal financial controls were reported as adequate and operating effectively as of March 31, 2026.