Auro Laboratories Limited has received credit rating assignments from Acuite Ratings & Research Limited for its bank facilities, as communicated to BSE Limited on April 14, 2026. The pharmaceutical company has been assigned ratings with a stable outlook across its banking arrangements.

Credit Rating Details

Acuite Ratings & Research Limited has assigned the following credit ratings to the company's bank facilities:

The ACUITE BB+ rating (read as ACUITE double B plus) applies to long-term facilities, while the ACUITE A4+ rating (read as ACUITE A four plus) covers short-term banking arrangements. Both ratings carry a stable outlook.

Rating Rationale and Company Strengths

The assigned ratings factor in several key strengths of Auro Laboratories Limited. The company benefits from extensive promoter experience, with Mr. Sharat Deorah and Mr. Siddhartha Deorah bringing long-standing expertise in the pharmaceutical and API manufacturing sector. The company has maintained an operational track record of over three decades in pharmaceutical and API manufacturing.

Auro Laboratories Limited operates with established relationships across its supply chain, including overseas vendors for key raw materials and customers across Europe and Southeast Asia. The company focuses on the anti-diabetic therapeutic segment and maintains a generic product base that serves as essential medicine with year-round global demand.

Recent Capacity Expansion and Financial Performance

The company has recently completed a significant brownfield expansion that impacted operations in FY2025. Revenue declined to Rs.19.40 crore in FY2025 compared with Rs.53.64 crore in FY2024, primarily due to the nine-month expansion period. With commissioning of the new block in August 2025, manufacturing capacity increased from 1,260 MT to 2,100 MT per year.

Revenue improved to Rs.22.25 crore in 9MFY2026, though this remained lower than expected due to geo-political situations in the middle east. The company reported operating margins of approximately 31% in 9MFY2026.

Rating Constraints and Risk Factors

The ratings are constrained by several factors including modest scale of operations where benefits of recently completed capex are yet to be fully achieved. The company operates with intensive working capital requirements, marked by high Gross Current Assets of 405 days in FY2025 compared to 199 days in FY2024.

The financial risk profile is moderate, with tangible net worth at Rs.42.97 crore as of March 31, 2025, compared to Rs.41.96 crore as of March 31, 2024. Gearing increased to 1.05 times from 0.63 times in FY2024 due to additional term loans for capacity expansion. The company also faces susceptibility to volatility in raw material prices and forex risk in the intensely competitive pharmaceutical industry.

Liquidity and Future Outlook

Acuite Ratings assessed the company's liquidity position as adequate, with net cash accruals of Rs.2.94 crore against maturing debt obligations of Rs.0.07 crore in FY2025. The company is expected to generate cash accruals in the range of Rs.6.00-15.00 crore during FY2026 to FY2027 against repayment obligations of Rs.2.00-6.00 crore during the same period.

The stable outlook reflects expectations that the company will continue to benefit from promoter experience and established customer relationships while managing the challenges associated with capacity utilization and working capital intensity.

Auro laboratories has filed its quarterly certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026. The pharmaceutical company submitted the mandatory compliance document to BSE Limited on April 14, 2026, confirming proper handling of dematerialization activities during Q4FY26.

Regulatory Compliance Certificate

The certificate, signed by Whole Time Director Siddhartha Deorah, confirms that all details of securities dematerialized and rematerialized during the quarter have been furnished to stock exchanges where the company's shares are listed. This quarterly filing ensures compliance with SEBI's depositories regulations and maintains transparency in share transfer operations.

Registrar Confirmation

Purva Sharegistry (India) Private Limited, the company's registrar and transfer agent, provided supporting confirmation dated April 01, 2026. The registrar certified that:

• Securities received for dematerialization were confirmed to depositories within prescribed timelines
• Physical certificates were mutilated and cancelled after due verification
• Depository names were substituted in member registers as registered owners
• All securities are listed on stock exchanges where earlier issued securities are traded

Dematerialization Activity Summary

During Q4FY26, significant dematerialization activity occurred across multiple shareholders. The detailed records show systematic conversion of physical shares to electronic form throughout the quarter.

Notable Shareholder Activity

The dematerialization records reveal substantial activity from several shareholders. Key participants included:

• Gowri Jeyaraman: 20 certificates (2,000 shares) processed on February 03, 2026
• Ajai Saran: 24 certificates (2,400 shares) processed on February 13, 2026
• Manik Chaudhury: 10 certificates (1,000 shares) processed on February 25, 2026
• Kailash Chand Makipuria: 10 certificates (1,000 shares) processed on March 28, 2026

Monthly Distribution

The dematerialization activity was distributed across the quarter with consistent processing:

This quarterly filing demonstrates the company's commitment to regulatory compliance and facilitates investor preference for electronic share holding. The systematic processing of dematerialization requests reflects efficient coordination between the company, its registrar, and depository participants.