Kobo Biotech Limited reported a net loss of ₹5.23 crore for the financial year ended March 31, 2025, widening from a loss of ₹4.93 crore in the previous year. The company did not generate any revenue from operations as manufacturing activities at its Solapur plant remained suspended due to regulatory and financial issues. The basic and diluted loss per share for the year was ₹2.20, compared to ₹2.07 in the prior year.

Total income for the year stood at ₹0.76 lakh, derived solely from other income, while total expenses amounted to ₹5.31 crore. The company continues to operate in a single business segment, pharmaceuticals. In view of the losses incurred, the Board did not recommend any dividend on equity shares for the year.

Corporate Insolvency Resolution Process

The Corporate Insolvency Resolution Process (CIRP) against the company, initiated on August 13, 2024, remains in effect. Ms. Namrata Amol Randeri serves as the Resolution Professional, managing the company’s affairs under the supervision of the Committee of Creditors. Subsequently, the Resolution Plan submitted by Beaufond Industries Limited was approved by the Hon’ble National Company Law Tribunal, Hyderabad Bench, vide order dated May 11, 2026. Pending implementation of the approved plan, the affairs of the company continue to be managed by the Resolution Professional.

Financial Results

Auditor and Compliance Observations

M/s. A N Shah & Associates, Chartered Accountants, audited the financial statements. The auditors noted that the company has been irregular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance, and Income Tax. Additionally, the auditors highlighted that the interest cost for the financial year was not provided for as the majority of the loans had been assigned to an asset reconstruction company. The company also delayed the payment of annual listing fees to BSE Limited.

Kobo Biotech Limited reported a net loss of ₹49.29 lakh for the financial year ended March 31, 2024, narrowing from the ₹55.53 lakh loss recorded in the previous year. The company did not generate any revenue from operations during the period as manufacturing activities at its Solapur plant remained suspended due to regulatory and financial challenges. The total income for the year stood at ₹152,000, derived entirely from other income.

The company’s total expenses for FY 2023-24 amounted to ₹4.94 crore, a decrease from ₹5.57 crore in the previous year. Employee benefit expenses accounted for ₹24.80 lakh, while depreciation and amortization expenses were ₹4.07 crore. Other expenses declined significantly to ₹62.45 lakh from ₹1.27 crore in the prior year. The loss per share for the year improved to ₹2.07 from ₹2.33 in FY 2022-23.

Financial Performance

Operational Review

The management stated that it could not resume operational activities at the Solapur Plant owing to regulatory and financial issues. The interest cost for the year was not provided for, as the majority of the loans have been assigned to JM Financial Asset Reconstruction Company Ltd. The company continues to operate in a single segment, pharmaceuticals, with no change in the nature of its business.

Corporate Developments

Subsequent to the close of the financial year, the Hon’ble National Company Law Tribunal, Hyderabad Bench, admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against the company. Ms. Namrata Amol Randeri was appointed as the Resolution Professional. Consequently, the powers of the Board of Directors stand suspended and are vested with the Resolution Professional. The Annual Report was submitted to BSE Limited on June 26, 2026.