Astonea Labs FY26 net profit falls 15.6% as revenue rises 51.3%

Astonea Labs Ltd reported a 15.6% decline in net profit to ₹451.52 lakh for the financial year ended March 31, 2026, despite a 51.3% increase in revenue from operations to ₹14,758.44 lakh. The company’s total income for the year stood at ₹14,810.43 lakh, compared to ₹9,770.77 lakh in the previous year. The board approved the standalone financial results on May 30, 2026, authorizing Director Pardeep Dalal to sign the documents.

The statutory auditor, Avnish Sharma & Associates, issued an unmodified opinion on the results but noted that internal financial controls over financial reporting were operating ineffectively as of March 31, 2026. The report stated the company is in the process of strengthening these controls. Additionally, the auditor highlighted a major fire incident on April 27, 2026, at the company's factory premises, which caused substantial damage to the building, plant, machinery, and stocks. The management estimated a loss of ₹9.39 crore, though the insurance claim is yet to be filed.

Financial Performance

Revenue growth was driven by operational expansion, though profitability was impacted by rising costs. Total expenses for the year increased to ₹14,248.28 lakh from ₹9,063.66 lakh in the prior year. The cost of materials consumed rose to ₹10,278.62 lakh, while employee benefit expenses increased to ₹762.76 lakh. Finance costs decreased to ₹326.28 lakh from ₹365.61 lakh in the previous year.

Particulars	Year Ended 31.03.2026 (₹ in lakhs)	Year Ended 31.03.2025 (₹ in lakhs)
Revenue from Operations	14,758.44	9,751.83
Total Income	14,810.43	9,770.77
Total Expenses	14,248.28	9,063.66
Profit for the Year	451.52	535.06
Basic EPS (₹)	4.49	6.94

Key Disclosures and Utilization of Funds

The company incorporated a wholly-owned foreign subsidiary, Astonea LLC, in the United States on January 25, 2026, but has not yet subscribed to any capital or commenced business operations. Astonea Labs also entered into a sales agreement with associate concern Astonea One Private Limited, generating sales of ₹41.41 crore and paying commissions of ₹15.43 crore.

Proceeds from the Initial Public Offer, totaling ₹37.67 crore, were utilized primarily for working capital and general corporate purposes. The board approved a variation in the utilization of IPO proceeds on February 27, 2026, which was subsequently ratified by shareholders. An investment of ₹6.25 crore was made in Damaira Pharmaceuticals Private Limited, acquiring a 25.74% equity stake. Unutilized IPO proceeds of ₹1.75 crore were maintained in a current account as of March 31, 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	+15.45%	+50.53%	+65.40%	+84.79%	+97.53%

Astonea Labs disclosed its related party transactions for the half year ended March 31, 2026, reporting a total transaction value of ₹3,204.06 lakh. The filing, submitted to BSE Limited, details transactions with key managerial personnel, directors, and associate concerns in compliance with Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The disclosure encompasses remuneration, sitting fees, reimbursements, and commercial transactions such as the sale and purchase of goods. Significant transactions include sales to associate concern Astonea One Private Limited, which accounted for a substantial portion of the activity. Loans extended to relatives of directors were also recorded during the period.

Transactions with Key Managerial Personnel and Directors

Remuneration and fees constituted a major component of the transactions with related parties. Managing Director Ashish Gulati received ₹60.33 lakh, while Chief Financial Officer Sumit Kumar and Company Secretary Ankit Kapoor received ₹5.00 lakh and ₹3.05 lakh respectively. Independent directors were paid sitting fees ranging from ₹0.18 lakh to ₹0.34 lakh.

Related Party	Relationship	Transaction Type	Value (₹ in Lakhs)
Ashish Gulati	Managing Director	Remuneration	60.33
Sumit Kumar	CFO	Remuneration	5.00
Ankit Kapoor	Company Secretary	Remuneration	3.05
Pardeep Singh	Director	Remuneration	1.72
Pooja Singh	Director	Remuneration	3.47
Vikrant	Director	Remuneration	1.02
Neha D. Gulati	Relative of Director	Remuneration	24.00
Sonika Choudhary	Relative of Director	Remuneration	5.30
Sonal Trpiathi	Relative of Director	Remuneration	9.00

Commercial Transactions with Associate Concerns

Transactions with associate concerns primarily involved the sale and purchase of goods and services. Astonea One Private Limited was the largest counterparty for sales of goods or services, with a transaction value of ₹2,627.74 lakh. Other associate concerns such as Shinto Organics, Ascot Biolabs Private Limited, and LV Life Sciences also engaged in significant trading activities.

Associate Concern	Transaction Type	Value (₹ in Lakhs)
Astonea One Private Limited	Sale of goods or services	2,627.74
Ascot Biolabs Private Liited	Sale of goods or services	138.04
Shinto Organics	Sale of goods or services	90.95
Shinto Organics Private Limited	Sale of goods or services	46.39
LV Life Sciences	Sale of goods or services	19.10

Loans to Related Parties

The company extended loans to relatives of directors and an associate concern during the half year. Harsh Gulati and Usha Gulati, relatives of directors, had outstanding loan balances of ₹190.35 lakh and ₹160.35 lakh respectively. Ascot Biolabs Private Liited also received a loan, though the balance stood at nil by the end of the period.