Company Overview

Sandu Pharmaceuticals Limited reported its FY26 financial results showing improved performance with revenue of ₹69.93 crore (up 4.1% YoY) and net profit growth of 23.2% to ₹176.62 lakhs. Basic EPS increased to ₹1.83 from ₹1.60 in the previous year.

Financial Performance Highlights

  • Revenue from Operations: ₹6,993.45 lakhs (compared to ₹6,719.24 lakhs previous year)
  • Net Profit Growth: 23.187% increase year-over-year
  • Profit Before Tax: ₹265.56 lakhs (previous year: ₹215.57 lakhs)
  • Profit After Tax: ₹176.62 lakhs (previous year: ₹154.89 lakhs)
  • Earnings Per Share: ₹1.83 (previous year: ₹1.60)

Key Balance Sheet Improvements

Inventory levels decreased significantly to ₹1,047.17 lakhs from ₹1,414.86 lakhs (down 26%), while cash balances improved substantially to ₹590.77 lakhs from ₹130.39 lakhs. The company maintained a strong current ratio of 2.43 (up from 2.18).

Dividend Declaration & Corporate Actions

  • Final Dividend Recommended: ₹1.00 per equity share (10% on paid-up capital)
  • Record Date: September 4, 2026
  • 41st AGM Scheduled: September 11, 2026 via video conferencing
  • Shareholders to vote on material related party transactions with Sandu Brothers Private Limited not exceeding ₹100 crore

Board and Management Changes

Following the passing of Managing Director Umesh B. Sandu on June 19, 2026, Balram Viswanathan was redesignated as Chairman and Managing Director for 3 years effective July 11, 2026. Dr. Neeti Kapre was appointed as Additional Director (Non-Executive, Independent). The company proposed appointing M/s. Dave & Dave as statutory auditors for 5 years.

Operational Metrics & Ratios

  • Operating Profit Margin: 6.09% (previous year: 5.18%)
  • Net Profit Margin: 2.53% (previous year: 2.31%)
  • Return on Net Worth: 5.01% (previous year: 4.63%)
  • Inventory Turnover: 2.56 (previous year: 2.43)
  • Debtors Turnover: 13.76 (previous year: 13.96)

Contingent Liabilities & Risk Factors

The company faces contingent liabilities of ₹283 lakhs in income tax demands under appeal with Mumbai High Court and ₹85.93 lakhs in GST demands under appeal with Commissioner of State Tax. Management believes both cases are strong and no provision is required.

Related Party Transactions

Significant transactions with Sandu Brothers Private Limited included sales of goods (₹40.78 lakhs), purchases (₹1,648.07 lakhs), and royalty payments (₹127.44 lakhs). All transactions were conducted at arm's length basis in the ordinary course of business.

Corporate Governance & Compliance

The company confirmed compliance with all SEBI LODR requirements, maintained adequate internal financial controls, and received an unmodified audit opinion. The board composition includes 6 directors (1 executive, 5 non-executive including 3 independent directors) with 5 board meetings held during the year.