Key Financial Figures - Consolidated (Rs. in million)

Quarterly Performance (Unaudited)

  • Total Income: ₹12,702.97 for Q1 FY2027 (vs ₹11,283.19 in Q1 FY2026)
  • Revenue from Operations: ₹12,607.54 for Q1 FY2027 (vs ₹11,197.36 in Q1 FY2026)
  • Other Income: ₹48.90 for Q1 FY2027 (vs ₹85.83 in Q1 FY2026)
  • Total Expenses: ₹11,325.93 for Q1 FY2027 (vs ₹9,980.08 in Q1 FY2026)
  • Cost of materials consumed: ₹4,147.15
  • Purchase of stock-in-trade: ₹1,663.81
  • Employee benefits expense: ₹2,429.86
  • Finance costs: ₹405.61
  • Depreciation and amortization: ₹563.99
  • Other expenses: ₹2,974.59
  • Profit Before Exceptional Items and Tax: ₹1,377.04 for Q1 FY2027 (vs ₹1,303.11 in Q1 FY2026)
  • Exceptional Items: Gain of ₹631.97 for Q1 FY2027 (vs loss of ₹83.67 in Q1 FY2026)
  • Profit Before Tax: ₹2,009.01 for Q1 FY2027 (vs ₹1,219.44 in Q1 FY2026)
  • Tax Expense: ₹341.23
  • Net Profit: ₹1,654.93 for Q1 FY2027 (vs ₹1,055.93 in Q1 FY2026)
  • Earnings Per Share (Basic & Diluted): ₹17.02 (not annualized)

Previous Quarter Comparison (March 31, 2026 - Audited)

  • Total Income: ₹13,315.98
  • Net Profit: ₹1,292.81
  • EPS: ₹13.77

Key Financial Figures - Standalone (Rs. in million)

Quarterly Performance (Unaudited)

  • Total Income: ₹5,841.23 for Q1 FY2027
  • Profit Before Tax: ₹847.58
  • Net Profit: ₹729.28
  • EPS (Basic & Diluted): ₹7.91 (not annualized)

Exceptional Items Details

The consolidated results include exceptional items of ₹631.97 million, primarily comprising:

  • Business restructuring gain: ₹742.07 million from dilution of stake in Pivot Path Private Limited
  • Product recall and settlement expenses: ₹(110.10) million related to Ranitidine, Losartan, and Testosterone recalls

Significant Corporate Action - Pivot Path Transaction

On June 27, 2026, the Board approved dilution of the Group's controlling stake in Pivot Path Private Limited to incoming investors for aggregate consideration of approximately ₹1,000 million. Key details:

  • Transaction completed on June 30, 2026
  • Group's shareholding reduced to 19.95%, resulting in loss of control
  • Retained interest recognized as investment in associate at fair value
  • Net gain of ₹742.07 million recognized, including fair value remeasurement of retained interest
  • Five-year Master Services Agreement executed with Pivot Path containing minimum revenue commitment and annual price escalation

This transaction follows the demerger of Arco Lab's Life Sciences and Digital Innovation business into Pivot Path, approved by NCLT on May 18, 2026, with appointed date of April 10, 2025.

Product Recall Provisions

The Group continues to provide for product recalls:

  • Ranitidine recall: Provision of ₹14.32 million in Q1 FY2027 (₹9.59 million in Q4 FY2026; ₹54.17 million in FY2026)
  • Testosterone recall: Provision of ₹95.78 million in Q1 FY2027 (₹19.36 million in Q4 FY2026; ₹174.62 million in FY2026)
  • These amounts include legal fees for ongoing litigations and are presented as exceptional items

Dividend Proposal

On May 18, 2026, the Board proposed a final dividend of ₹5 per equity share, subject to shareholder approval at the Annual General Meeting. This would result in cash outflow of approximately ₹461 million.

Auditor's Review

B S R & Co. LLP conducted limited review and issued unmodified opinion. Key qualifications:

  • 2 subsidiaries with revenue of ₹2,190 million reviewed by other auditors
  • 25 subsidiaries with revenue of ₹1,993 million not reviewed but deemed immaterial
  • 3 associates and 1 joint venture not reviewed with net loss of ₹13 million

Entity Structure

The consolidated results include 37 entities comprising subsidiaries, associates, joint venture, and a trust. Significant changes:

  • Pivot Path converted from subsidiary to associate due to loss of control w.e.f. June 30, 2026
  • Asaco Trinity Proprietary Limited became associate w.e.f. May 22, 2026