Company Overview

Oxygenta Pharmaceutical Limited (BSE: 524636) convened its 33rd Annual General Meeting on 21st August 2026 and reported standalone financial results for FY 2025-26, showing continued financial stress with negative equity position.

Financial Performance

For FY26, the company reported a net loss of ₹175.72 million (higher than previous year's loss of ₹102.98 million) despite marginal revenue growth of 3.4% to ₹1,129.82 million. The company's negative equity stood at ₹426.87 million due to accumulated losses of ₹917.51 million. Total borrowings increased significantly to ₹1,095.67 million, primarily from Kotak Mahindra Bank secured against company assets and corporate guarantees from Virupaksha Organics.

Change in Control and Ownership

During the year, Virupaksha Organics Limited acquired 55.37% voting share capital through an open offer, resulting in change of ownership and control effective 20th June 2025. Virupaksha Organics is now the promoter and holding company with 56.50% stake, while several erstwhile promoters were re-classified to public category.

Key AGM Resolutions

The AGM agenda included adoption of financial statements, re-appointment of Mr. Balasubba Reddy Mamilla, and special business items:

  • Appointment of Mr. Amireddy Venkatesu Reddy as Whole-Time Director with remuneration of ₹600,000-800,000 per month
  • Appointment of Mr. Janardhana Reddy Yeddula as Independent Director for 5 years
  • Approval of material related party transactions with Virupaksha Organics totaling ₹4,500 million for FY27 (sales: ₹1,300M, purchases: ₹1,200M, borrowings: ₹1,000M, guarantees: ₹1,000M)

Significant Financial Disclosures

The company recognized a deferred tax asset of ₹174.07 million primarily on unabsorbed tax losses of ₹197.87 million, based on management's assessment of future profitability. Customer concentration risk is significant with 63.87% of FY26 revenue (₹721.61 million) derived from Virupaksha Organics. The company also disclosed contingent liabilities of ₹1.60 million for various tax demands.

Auditor's Concerns and Going Concern

Statutory auditors issued an unqualified opinion but emphasized material uncertainty regarding going concern due to negative net worth, accumulated losses, and working capital deficit. The company's ability to continue is dependent on achieving profitable operations and continued support from the holding company. Management projections indicate return to positive EBITDA in FY27.

Operational and Regulatory Compliance

The company operates in pharmaceutical API manufacturing and has complied with SEBI LODR requirements, constituting mandatory committees and implementing governance policies. Key managerial personnel changes included appointment of new CFO and Company Secretary during the year. The financial statements were prepared in accordance with Ind AS and Companies Act, 2013 requirements.