Kimia Biosciences Limited reported a significant contraction in profitability for the first quarter of FY27, with net profit falling 41% year-on-year to ₹35.58 lakh. The decline followed a 12.1% drop in revenue from operations to ₹2,072.25 lakh, compared to ₹2,358.41 lakh in Q1FY26.

The board of directors approved the unaudited standalone financial results at a meeting held on August 10, 2026. The results were subsequently published in "Financial Express" and "Jansatta" on August 12, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Revenue pressure was evident as total income fell to ₹2,080.31 lakh from ₹2,443.10 lakh in the prior-year quarter. While other income dropped sharply to ₹8.06 lakh from ₹84.69 lakh, the primary drag on margins came from the cost structure. Cost of materials consumed increased by 2.9% to ₹1,656.88 lakh, even as the company benefited from a ₹533.54 lakh reduction in finished goods and work-in-progress inventories.

Operating expenses remained relatively stable, with employee benefits declining slightly to ₹296.97 lakh and finance costs dropping significantly to ₹83.05 lakh from ₹174.71 lakh. However, these savings were insufficient to offset the revenue decline and higher material costs. Deferred tax charges stood at ₹13.40 lakh for the quarter.

What the Numbers Show

A notable divergence exists between the company’s top-line performance and its input costs. While revenue contracted by over 12%, the cost of materials consumed actually rose by nearly 3%. This inverse movement suggests potential pricing pressures or a shift in product mix toward lower-margin items, eroding the gross operating leverage typically seen in pharmaceutical manufacturing during periods of volume growth. Additionally, the sharp drop in finance costs indicates a reduction in interest-bearing debt or favorable refinancing, yet this benefit did not translate into proportional bottom-line protection due to the revenue shortfall.

Kimia Biosciences Limited has appointed new cost, internal, and secretarial auditors to oversee its financial and regulatory compliance for the upcoming fiscal periods. The Board of Directors approved these appointments during a meeting held on August 1, 2026, in New Delhi, ensuring continuity in statutory audit functions under the Companies Act, 2013.

The Board appointed M/s Mahesh Singh & Co., Cost Accountants, as the Cost Auditor for Financial Year 2026-27 pursuant to Section 148 of the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014. Simultaneously, M/s Chaudhry & Associates, Chartered Accountants (Firm Registration No. 033470N), was appointed as the Internal Auditor for Financial Year 2026-27 under Section 138 of the Companies Act, 2013 and the Companies (Accounts) Rules, 2014.

In a separate compliance move, the Board discontinued the services of M/s M & Co., Practising Company Secretaries, as Secretarial Auditor effective August 1, 2026. The company replaced them with M/s Maya Sharma and Associates, Practising Company Secretaries (Membership No. A52000), to conduct secretarial audits for Financial Years 2025-26 and 2026-27 under Section 204 of the Companies Act, 2013.

Auditor Appointments Overview

Firm Profiles and Experience

M/s Mahesh Singh & Co. brings over 25 years of experience in conducting audits for banks, companies, societies, and trusts. M/s Chaudhry & Associates has more than fifteen years of experience in internal audit and internal financial controls services. M/s Maya Sharma and Associates specializes in secretarial audits, certifications, consulting, and corporate compliance services.

The disclosures were made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Abhishek Kumar Pandey, Company Secretary and Compliance Officer, signed the disclosure on behalf of the company.