Bafna Pharmaceuticals held its 31st Annual General Meeting on September 11, 2026. The meeting concluded with shareholders approving the company’s audited financial statements for FY26.

The gathering was conducted via Video Conferencing or Other Audio-Visual Means starting at 10:00 am. Mrs. Ravichandran Chitra, Chairperson of the Board, presided over the proceedings after confirming the requisite quorum was present.

Ms. S Hemalatha, Whole Time Director, presented an overview of the business performance for the financial year ended March 31, 2026. She outlined future outlooks and thanked stakeholders for their continued support.

The Company Secretary read out qualifications from the Independent Auditors' Report and the Secretarial Audit Report. The Board provided explanations and replies to these qualifications during the session.

Shareholders voted on three ordinary resolutions. The agenda included adopting the financial statements, re-appointing a retiring director, and ratifying cost auditor remuneration.

Mr. Upendar Mekala Reddy (DIN: 08898174) was re-appointed as a director. He retires by rotation and offered himself for re-appointment to the members.

The meeting also ratified the remuneration payable to Cost Auditors M/s. N. Sivashankaran & Co., Cost Accountants (ICMAI FRN. 100662), Chennai for FY27.

Remote e-voting was facilitated by CDSL from September 8 to September 10, 2026. Mr. Balu Sridhar of M/s. A.K. Jain & Associates served as the scrutinizer for the voting process.

Mr. Bafna Mahaveer Chand, Chief Executive Officer, addressed queries raised by members during the question-and-answer session. The meeting concluded at 10:35 am.

Bafna Pharmaceuticals delivered a strong financial performance for FY26, reporting a net profit of ₹111.00 million, a 167% increase from ₹41.53 million in the previous year. The pharmaceutical manufacturer achieved this growth despite modest top-line expansion, highlighting improved operational efficiency and cost control measures implemented during the fiscal year.

Revenue from operations grew by 3.26% to ₹1,506.17 million from ₹1,458.57 million in FY25. Export sales were a key growth driver, surging 31.29% to ₹958.10 million. This export acceleration contributed significantly to the company's profitability, as international markets typically offer better pricing power compared to domestic segments.

Financial Performance Highlights

The company's EBITDA expanded by 48.74% to ₹207.04 million, pushing the EBITDA margin from 9.54% to 13.75%. This margin improvement indicates effective management of input costs and operational leverage. Earnings per share (EPS) more than doubled to ₹4.69 from ₹1.76 in the prior year.

What the Numbers Show

A critical observation from the financials is the divergence between revenue growth and profit growth. While revenue increased by only 3.26%, net profit surged by 167%. This suggests that the profit uplift was driven primarily by margin expansion rather than volume growth. Additionally, other income rose to ₹475.63 million from ₹274.22 million, contributing significantly to the bottom line. Investors should note that while operational efficiency improved, the high reliance on non-operating income components warrants monitoring in future quarters.

Operational Developments

Bafna Pharmaceuticals continued its strategic focus on capacity expansion and regulatory compliance. The company expanded its capsule manufacturing capacity from 375 million units to 600 million units during FY26. It also established a dedicated granulation facility at its Grantlyon plant in Chennai, enhancing manufacturing flexibility.

Key operational milestones included:

• Maintaining global accreditations including EU-GMP, UK-MHRA, TGA-Australia, and WHO-GMP.
• Registering 51 new products across various markets, including Australia, Philippines, and Nigeria.
• Hive-off of its Madhavaram manufacturing unit to focus on modernized core assets.

Credit Rating Upgrade

Reflecting improved financial health, ICRA revised Bafna Pharmaceuticals' credit outlook from stable to positive on January 23, 2026. The long-term credit facilities retained a BB+ rating, while short-term facilities maintained an A4+ rating. This upgrade underscores the company's strengthened balance sheet and debt servicing capability.

The Board did not declare any dividend for FY26. The 31st Annual General Meeting is scheduled for September 11, 2026, where shareholders will consider the adoption of audited financial statements and the re-appointment of directors.