Hindustan Bio Sciences Limited’s board of directors approved a scheme for the reduction of capital and reorganization of share capital in its meeting held on Monday, August 31, 2026. The move aims to set off accumulated losses and improve the company’s net worth.

The proposal involves the cancellation and extinguishment of 56,37,940 fully paid-up equity shares of ₹2 each on a pro-rata basis. This will reduce the paid-up equity share capital from ₹2,05,01,600 to ₹92,25,720. The company intends to set off ₹1,12,75,880 against its total accumulated losses of ₹1,22,41,849.

Capital Restructuring Details

Following the capital reduction, the company will consolidate its existing face value of ₹2 per share into ₹10 per share. Every five equity shares of ₹2 each after reduction will be consolidated into one equity share of ₹10 each.

Shareholders on the record date will receive nine equity shares of ₹10 each against every 100 equity shares of ₹2 each held. Fractional entitlements, if any, will be rounded off to one share. The promoter, Mr. Venkata Rama Mohan Raju Jampana, has agreed to forgo the increase in shares due to rounding off to keep the paid-up capital intact at ₹92,25,720.

Regulatory Approvals Required

The approved scheme is subject to necessary approvals from shareholders, the Hyderabad Bench of the National Company Law Tribunal (NCLT), and other statutory and regulatory bodies. The draft scheme will be made available on the company’s website after filing with BSE Limited.

AGM Notice

The board also considered the notice for convening the Annual General Meeting (AGM) for the financial year 2025-26. The meeting concluded at 4:30 pm. J V R Mohan Raju, Managing Director, signed the intimation letter dated August 31, 2026.

Hindustan Bio Sciences Limited reported a standalone net loss of ₹11.29 lakh for the first quarter ended June 30, 2026 (Q1FY27), widening from the net profit of ₹1.40 lakh recorded in Q1FY26. The deterioration was driven by zero revenue from operations, compared to ₹32.19 lakh in the corresponding period of FY26, signaling a complete cessation of trading activities. Despite the absence of operational income, the company incurred total expenses of ₹11.29 lakh, primarily comprising employee benefit expenses of ₹5.72 lakh and other expenses of ₹5.56 lakh. This divergence between nil revenue and sustained fixed costs poses ongoing liquidity risks for shareholders.

The Board of Directors approved the unaudited standalone financial results on July 31, 2026, in compliance with Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Vasg & Associates, who issued an unmodified opinion. The company operates in a single reportable segment: Trading of Pharmaceuticals.

Financial Performance

The financial data reveals a sharp contraction in top-line activity while fixed costs persisted. In Q1FY27, revenue from operations was nil, and other income was also zero. This contrasts with Q1FY26, where the company generated ₹32.19 lakh from operations and ₹1.31 lakh from other income.

Employee benefit expenses increased slightly to ₹5.72 lakh from ₹4.40 lakh in the previous year’s quarter. Purchases of stock-in-trade, which accounted for ₹21.19 lakh in Q1FY26, dropped to zero in the current quarter, aligning with the absence of operational revenue. Finance costs and selling expenses were negligible, recorded at ₹0.00 lakh and ₹0.01 lakh respectively.

What the Numbers Show

The most critical observation is the complete cessation of revenue generation alongside persistent operational expenditures. While the company avoided variable costs such as purchases of stock-in-trade and material consumption, it continued to incur fixed overheads, particularly employee benefits and other administrative expenses. This divergence between zero revenue and sustained expenses directly caused the swing from a profit position in Q1FY26 to a loss in Q1FY27. The lack of any other income further exacerbated the bottom-line pressure, indicating no offsetting gains from investments or interest during the period.

Corporate Governance Updates

In addition to approving the financial results, the Board fixed the date for the 34th Annual General Meeting (AGM) as Wednesday, September 30, 2026, at 10:00 A.M. The meeting will be held at the company’s registered office in Hyderabad. Mr. VBSS Prasad, a practicing Company Secretary, was appointed as the scrutinizer to oversee the remote e-voting process and voting at the venue, ensuring transparency in shareholder participation. The notice convening the AGM, along with the Directors’ Report and Corporate Governance Report for FY26, was also approved.