Company Overview
Unichem Laboratories Limited (BSE: 506690, NSE: UNICHEMLAB) filed its Annual Report for FY 2025-26 under SEBI Regulation 34, disclosing mixed financial performance and significant corporate developments.
Financial Performance
Standalone Results: Revenue from operations declined 18.6% to ₹1,412.29 crores (FY26) from ₹1,735.70 crores (FY25), while net profit remained relatively stable at ₹158.94 crores versus ₹162.96 crores. Export income constituted 97.6% of total revenue at ₹1,335.75 crores. Consolidated Performance: Showed improvement with revenue increasing 4.3% to ₹2,201.85 crores and net profit surging 83.9% to ₹252.84 crores.
Key Corporate Actions
The company transferred its 100% stake in Unichem Laboratories Limited, Ireland to parent company Ipca Laboratories Limited on 30th April 2025, resulting in an impairment reversal of ₹4.00 crores. The board seeks shareholder approval at the 63rd AGM on 11th August 2026 for the re-appointment of Mr. Pabitrakumar Bhattacharyya as MD & CEO for three years with a revised compensation structure (basic salary up to ₹28,00,000 per month plus commission).
Regulatory Settlements
Unichem fully settled a European Commission fine of €19.55 million (including interest) related to a 2005 Perindopril patent dispute, paying €16.75 million in October 2025 after adjusting previous installments. The company had provisioned €13.96 million in FY24, with the balance recorded as an exceptional item in FY26.
Financial Position
As of March 2026, key balance sheet items included inventory of ₹592.48 crores, trade receivables of ₹582.94 crores, and significantly improved cash balances of ₹257.89 crores (up from ₹88.63 crores). Borrowings reduced to ₹53.34 crores total (non-current: ₹39.12 crores, current: ₹14.22 crores). The company maintained an ICRA A+ credit rating with stable outlook.
Operational Highlights
The company produced 9.4 billion tablets/capsules across six Indian plants, with US markets contributing 65% of total revenue. R&D expenditure stood at ₹107.02 crores (7.58% of turnover), while capital expenditure focused on energy conservation equipment totaling ₹38.63 crores. No dividend was recommended for FY26 to conserve resources.
Ownership Structure
Promoter holding remained stable at 70.22%, with Ipca Laboratories Limited holding 52.67% and Dr. Prakash Amrut Mody holding 12.78% of equity shares. The company has five subsidiaries, including material subsidiary Unichem Pharmaceuticals (USA) Inc., and one associate (Synchron Research Services Pvt Ltd, 32.11% ownership).
Governance & Compliance
The company maintained full compliance with SEBI listing regulations and corporate governance standards. All applicable secretarial standards were complied with, and no material orders from regulators/courts affecting going concern status were reported. The whistleblower policy remained operational with no complaints received during the year.