Bajaj Healthcare Limited reported its audited standalone financial results for the quarter and financial year ended March 31, 2026, as approved by its Board of Directors at a meeting held on May 08, 2026. The results were audited by Walker Chandiok & Co LLP, Chartered Accountants, with an unmodified opinion, and reviewed by the Audit Committee prior to board approval. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audited financial results were subsequently published in Financial Express and Mumbai Lakshadweep on May 10, 2026. The company, a leading manufacturer of APIs, Intermediates, and Formulations established in 1993, operates in a single reportable segment — Pharmaceuticals — encompassing formulations and active pharmaceutical ingredients.

Financial Performance: FY26 vs FY25

Bajaj Healthcare's revenue from operations for the full year ended March 31, 2026 grew 12.6% to ₹61,103.14 lakhs from ₹54,260.24 lakhs in the previous year. Total income for FY26 stood at ₹61,816.53 lakhs against ₹56,200.68 lakhs in FY25. EBITDA for FY26 came in at Rs. 1,119.5 Mn, up 9.9% YoY, with EBITDA margin at 18.3% compared to 18.8% in FY25. Profit After Tax (PAT) from continuing operations before exceptional items grew 27.1% YoY to Rs. 545.6 Mn, with PAT margin from continuing operations improving to 8.8% from 7.9% in FY25. However, reported net profit for the year declined to ₹1,576.61 lakhs from ₹3,949.55 lakhs, primarily due to an exceptional item of ₹3,324.66 lakhs — the reversal of technical know-how income recognised in an earlier year, attributable to ongoing regional instability in the Middle East that prevented a customer from meeting its committed timeline. Profit before exceptional items and tax for FY26 was ₹6,216.96 lakhs, compared to ₹4,600.77 lakhs in FY25, reflecting underlying operational improvement.

The following table summarises the key financial metrics for the year and the most recent quarter:

Revenue Breakup

FY26 revenue growth was driven by strong API export performance and sustained momentum in formulations. API exports surged 51.6% YoY to Rs. 1,881.4 Mn for the full year, while formulations grew 12.6% YoY to Rs. 1,033.2 Mn. Domestic API revenue saw a modest decline of 2.2% YoY to Rs. 3,195.7 Mn, reflecting continued price erosion in the domestic market.

Earnings Per Share

The earnings per share figures for FY26 and FY25 reflect the impact of the exceptional item and discontinued operations on the full-year results.

Discontinued Operations and Asset Disposals

The company has classified certain manufacturing units and industrial land as assets held for sale under Ind AS 105. During the quarter ended March 31, 2026, one unit situated at plot no. L-9/3, MIDC Tarapur was sold. Loss after tax from discontinued operations for FY26 stood at ₹554.43 lakhs, compared to ₹343.33 lakhs in FY25. Non-current assets classified as held for sale stood at ₹6,993.00 lakhs as at March 31, 2026.

Preferential Issue and Fund Utilisation

On March 18, 2026, the Board approved the allotment of 20,79,409 fully paid-up equity shares at a price of ₹338 per share (including a premium of ₹333) pursuant to the conversion of warrants, bringing additional capital of INR 527 million to strengthen the balance sheet. Earlier, on September 19, 2024, the company had allotted 39,84,852 equity shares and 20,79,409 convertible warrants, raising an aggregate amount of ₹15,225.90 lakhs. The utilisation of funds raised through the preferential issue is detailed below:

Key Business Developments

Bajaj Healthcare made notable progress on the regulatory and product development front during the period. Cenobamate, a novel anti-epileptic molecule, is progressing through Phase III clinical trials as planned and is slated for launch in Q2 FY27, strengthening the company's presence in the CNS space. The company also successfully completed the bioequivalence study for Suvorexant Tablets and will be filing the application with DCGI in the near term. On the regulatory filing front, 41 Drug Master Files (DMFs) were filed in Q4, bringing the cumulative total to 110, further reinforcing the company's global regulatory presence in regulated and high-value markets.

Dividend, Auditor Appointments, and Acquisition Update

The Board recommended a final dividend of ₹1.50 per equity share (30% of face value of ₹5 each) for FY26, subject to shareholder approval at the ensuing Annual General Meeting. The paid-up equity share capital as at March 31, 2026 stood at ₹1,683.13 lakhs, with other equity at ₹51,617.10 lakhs. The Board also approved the appointment of M/s. JCR & Co. LLP, Chartered Accountants, as Internal Auditors for FY2026-27, and the re-appointment of M/s. V.J. Talati & Co., Cost Accountants, as Cost Auditors for FY2026-27. Separately, in April 2025, the company acquired Genrx Pharmaceuticals Private Limited (in Liquidation) on a going concern basis for a total consideration of ₹1,085 lakhs; however, Genrx has not been consolidated as a subsidiary pending requisite approvals from the National Company Law Tribunal, Mumbai, as control under Ind AS 110 has not yet been established.

Management Commentary

Commenting on the results, Mr. Anil Jain, Managing Director, said: "The quarter was marked by a challenging operating environment driven by continued price erosion in domestic APIs, early impacts of geopolitical disruptions in West Asia including elevated raw material prices. While revenue remained broadly stable on a YoY basis despite high teens volume growth, Profit After Tax from continuing operations before exceptional items registered healthy growth of 19% YoY, reflecting the strength of our operational discipline, cost management, and continued focus on profitability despite external headwinds. FY26 revenue grew 12.6% YoY, driven by strong API export growth of 51.6% YoY as we witnessed healthy traction across the EU, UK, LATAM, and other regulated markets, coupled with sustained momentum in the formulations business which also recorded 12.6% YoY growth. Looking ahead, we remain focused on strengthening our core API business and achieving export-led growth while scaling our formulations business with an emphasis on higher-value products. We are accelerating efforts in peptides, oncology, and CNS, supported by continued investments in manufacturing, capacity expansion, and R&D-led innovation."

Source: Company/INE411U01027/91951b1b-bcba-48b4-aad2-3f89db9d4962.pdf

Bajaj Healthcare Limited has filed a Statement of Deviation or Variation for the quarter ended March 31, 2026, pursuant to Regulation 32(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, pursuant to Regulation 32(6) of the SEBI (LODR) Regulations, 2015, read with Regulation 162A of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the company has submitted the Monitoring Agency Report dated May 08, 2026, for the quarter ended March 31, 2026, issued by CARE Ratings Limited. Both filings, signed by Company Secretary and Compliance Officer Monica Tanwar, confirm that there is no deviation or variation in the utilisation of proceeds raised through the preferential issue of equity shares and conversion of warrants into equity shares.

Fund Raising and Issue Details

The preferential issue covered equity shares and convertible warrants, with the following key parameters:

The company had originally proposed to issue up to 40,44,852 equity shares and 20,79,409 convertible warrants at ₹338 per share (including a premium of ₹333 per share), aggregating to ₹207.00 Crores. The equity share portion was marginally undersubscribed, while the warrant portion was fully subscribed. Accordingly, the company allotted 39,84,852 equity shares and 20,79,409 convertible warrants, resulting in an aggregate issue size of ₹204.97 Crores. Of this, the company initially received ₹152.26 Crores, representing 100% subscription amount of the allotted equity shares and 25% upfront subscription amount of the warrants.

Warrant Conversion and Fund Receipt

During the quarter ended March 31, 2026, the warrant holders exercised their conversion option and remitted the balance 75% of the warrant issue size of ₹70.28 Crores, amounting to ₹52.71 Crores. Following this, the Board of Directors, at its meeting held on March 18, 2026, approved the allotment of 20,79,409 fully paid-up equity shares of face value ₹5 each to the Promoter, Promoter Group, and certain persons belonging to the Non-Promoter Public Category, at an issue price of ₹338 per share (including a premium of ₹333 per share), aggregating to ₹70.28 Crores. The company also filed Form PAS-3 confirming the allotment and receipt of the balance consideration.

Fund Utilisation — No Deviation Reported

The table below presents the object-wise allocation and utilisation of funds as at March 31, 2026, confirming no deviation or variation across any category (₹ in Cr.):

The full allocated amount of ₹150.00 Crores towards repayment and prepayment of secured and unsecured loans was fully deployed, with utilisation completed during Q2FY25. Capital expenditure utilisation stood at ₹3.16 Crores against an allocation of ₹35.00 Crores during Q4FY26, directed towards building-related works, reactors/production equipment, equipment for QA/QC/R&D/store, and electricals. General corporate purposes saw ₹19.84 Crores utilised against a modified allocation of ₹19.97 Crores, leaving an unutilised balance of ₹0.13 Crores under that head.

Progress in Fund Utilisation

The quarter-wise progress in fund utilisation is detailed below (₹ in Cr.):

Unutilised proceeds of ₹31.97 Crores are held in the preferential issue monitoring bank account, with a market value of ₹31.97 Crores as at the end of the quarter, verified through a Chartered Accountant Certificate dated April 30, 2026, from N.K. Mittal & Associates. Funds for capital expenditure and general corporate purposes were raised in March 2026, with the utilisation timeline extending up to 12 months thereafter.

General Corporate Purpose Utilisation Breakdown

During Q4FY26, ₹17.58 Crores was utilised under General Corporate Purpose. The detailed breakdown is as follows (₹ in Cr.):

The definition of General Corporate Purpose was revised at the Board and Audit Committee meetings held on November 14, 2024, to explicitly include repayment of unsecured loans taken for working capital requirements. Further, at the Board meeting held on March 18, 2026, the scope of GCP was elaborated to include funds utilised for identified business purposes where no specific amount is allocated, covering operational, strategic, administrative, and business expenses such as employee expenses, rent, power and fuel, legal and professional fees, freight and forwarding expenses, processing/labour charges, repairing charges, purchase of raw material, packing material, spares, and payment of statutory dues.

Monitoring Agency Findings and Audit Committee Review

CARE Ratings Limited, in its Monitoring Agency Report, confirmed that all utilisation during Q4FY26 is as per the offer letter, with sample invoices aggregating to approximately 75% of total utilisation amount checked and reliance placed on the CA Certificate. The monitoring agency noted that the preferential issue was marginally undersubscribed, with 39,84,852 equity shares allotted against the proposed 40,44,852, resulting in a reduction in total expected proceeds from ₹207.00 Crores to ₹204.97 Crores. No major deviations were observed over earlier monitoring agency reports, and all government and statutory approvals related to the objects have been obtained. The Statement of Deviation or Variation was duly reviewed by the Audit Committee, which recorded no comments, and the company's auditors also offered no comments. The filing was submitted on behalf of Bajaj Healthcare Limited by Chief Financial Officer Rohan Parekh.