Kopran reported a 10% year-on-year decline in consolidated net profit to ₹670.09 lakh for the first quarter ended June 30, 2026 (Q1FY26), despite top-line revenue growing to ₹1,539.94 lakh. The pharmaceutical manufacturer’s Board of Directors approved the unaudited standalone and consolidated financial results on August 7, 2026, revealing that rising input costs and operational expenses eroded operating leverage. While absolute earnings before interest, tax, depreciation, and amortisation (EBITDA) improved to ₹178.39 lakh, the EBITDA margin contracted by 67 basis points to 11.55% from 12.22% in the corresponding quarter of FY25. The results were reviewed by statutory auditor Khandelwal Jain & Co., which issued an unmodified opinion.

Revenue and Operating Performance

Kopran’s consolidated revenue from operations rose 13.8% year-on-year to ₹1,539.94 lakh in Q1FY26, compared to ₹1,352.16 lakh in Q1FY25. This growth was driven by increased volume and mix improvements across its pharmaceutical portfolio. However, the cost of materials consumed surged significantly to ₹1,208.91 lakh from ₹803.02 lakh in the previous year’s quarter, reflecting inflationary pressures in raw material costs. Employee benefits expense also increased to ₹184.63 lakh from ₹154.33 lakh, while other expenses rose to ₹285.64 lakh from ₹202.49 lakh. These cost increases outpaced revenue growth, leading to a compression in operating margins.

On a standalone basis, Kopran’s revenue from operations grew more sharply by 22.2% to ₹627.58 lakh from ₹513.35 lakh in Q1FY25. Standalone EBITDA margin remained relatively stable but showed signs of pressure, with total expenses rising to ₹568.88 lakh from ₹485.25 lakh. The company benefited from foreign exchange gains of ₹197.62 lakh on a consolidated basis and ₹258.39 lakh on a standalone basis, which partially offset the operating margin contraction.

The following table summarises Kopran’s key financial metrics for Q1FY26:

Note: EBITDA calculated as Total Income minus Total Expenses plus Depreciation/Amortisation/Finance Costs where applicable per standard definition implied by source data structure.

Profitability and Bottom Line

Despite the revenue growth, Kopran’s consolidated net profit declined to ₹670.09 lakh in Q1FY26 from ₹744.93 lakh in Q1FY25, a decrease of approximately 10%. The profit before tax stood at ₹880.29 lakh, down from ₹988.91 lakh in the prior year quarter. Tax expense for the period was ₹193.25 lakh (current tax) and ₹16.95 lakh (deferred tax), totaling ₹210.20 lakh.

In contrast, the standalone segment saw a significant improvement in net profit, which more than doubled to ₹672.30 lakh from ₹351.81 lakh in Q1FY25. This divergence highlights the impact of inter-company transactions and subsidiary performance on the consolidated bottom line. Basic earnings per share (EPS) for the consolidated entity fell to ₹1.39 from ₹1.54 in Q1FY25, while standalone basic EPS rose to ₹1.39 from ₹0.73.

What the Numbers Show

The primary challenge for Kopran in Q1FY26 was margin erosion due to disproportionate growth in material costs. While revenue grew by nearly 14%, the cost of materials consumed jumped by over 50%, indicating either a shift towards higher-cost products or significant inflation in key active pharmaceutical ingredients (APIs). The contraction in consolidated EBITDA margin from 12.22% to 11.55% underscores this pressure. However, the strong standalone profit growth suggests that the parent company’s direct operations are performing well, with efficiencies or better pricing power not fully reflected in the consolidated group results due to subsidiary dynamics. Foreign exchange gains provided a modest tailwind, contributing ₹197.62 lakh to consolidated income, but were insufficient to fully counteract the operating headwinds.

Kopran Limited has filed its Annual Report for the financial year ended March 31, 2026, along with the Notice of its 67th Annual General Meeting (AGM), pursuant to Regulation 34(1) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The AGM is scheduled to be held on Tuesday, August 18, 2026 at 11.30 a.m. (IST) through Video Conferencing / Other Audio-Visual Means. Established in 1958, the company operates as an integrated pharmaceutical manufacturer supplying Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDFs) to customers across more than 50 countries.

Financial Performance: Standalone and Consolidated

The company's financial results for FY 2025-26 reflect mixed performance across standalone and consolidated metrics. The following table summarises the key financial highlights as reported in the Annual Report.

On a consolidated basis, the company reported revenue from operations of ₹68,142 lakhs, EBITDA of ₹7,790 lakhs (excluding other income and forex losses), net profit of ₹2,573 lakhs, and net worth of ₹53,028 lakhs. Return on Equity (RoE) stood at 4.9% and Return on Capital Employed (RoCE) at 9.2%, with earnings per share of ₹5.33 and finance costs of ₹1,047 lakhs.

Segment Performance: Formulations and API

The company operates through two business verticals — Formulations (under Kopran Limited) and APIs (through its wholly owned subsidiary Kopran Research Laboratories Limited, or KRLL). The following table presents segment-wise turnover for FY 2025-26.

Within the API segment, revenue of ₹37,335 lakhs was led by Carbapenems (₹18,977 lakhs), Macrolides (₹6,081 lakhs) and Anti-Hypertensives (₹4,580 lakhs). Export sales contributed ₹14,598 lakhs, while domestic sales stood at ₹22,737 lakhs. The formulations segment recorded revenue of ₹29,639 lakhs, with the Penicillin plant contributing ₹17,509 lakhs and the Non-Penicillin plant contributing ₹12,130 lakhs. Region-wise exports were led by South Africa (₹12,574 lakhs) and Africa (₹11,733 lakhs), followed by Southeast Asia, MENA and LATAM markets. The company has commercialised 26 API products and serves regulated and semi-regulated markets across more than 50 countries.

Dividend and Share Capital

The Board of Directors has recommended a final dividend of ₹3.00 (30%) per equity share of face value ₹10 each for FY 2025-26, subject to shareholder approval at the AGM. This is consistent with the dividend declared in the previous year. If approved, the dividend payout would result in a cash outflow of approximately ₹1,448.57 lakh. The paid-up equity share capital as on March 31, 2026 stood at ₹48.28 crores. During the year, the company issued 4,75,000 ESOPs under the 'Kopran Employee Stock Option Plan 2023', with outstanding ESOP grants of 137,700 shares as at year-end. No equity shares were allotted under the ESOP plan during the year.

Key Corporate Developments

Several significant corporate events took place during FY 2025-26 and up to the date of the report:

• Panoli Facility Commencement: The company's brownfield API manufacturing facility at Panoli, Gujarat commenced commercial production on March 31, 2026. The company is pursuing regulatory approvals and customer qualifications across domestic and international markets.
• Scheme of Amalgamation: The Board approved a Scheme of Amalgamation (Merger by Absorption) of Kopran Laboratories Limited (Transferor Company) with Kopran Limited (Transferee Company). Under the scheme, 100 fully paid equity shares of Kopran Limited (face value ₹10 each) will be issued for every 45 equity shares of Kopran Laboratories Limited. BSE and NSE have issued observation letters, and the Hon'ble NCLT, Mumbai Bench, vide its order dated April 09, 2026, has directed the companies to hold meetings of equity shareholders and creditors.
• Board Changes: Mrs. Namrata Somani (DIN: 07095595) was appointed as Director with effect from May 19, 2026. Mr. Susheel Somani resigned with effect from July 29, 2025; Mr. Adarsh Somani resigned with effect from March 17, 2026; and Mr. Siddhan Subramanian and Mrs. Sunita Banerji completed their second terms as Independent Directors on September 17, 2025.
• Capacity Expansion: The company is undertaking expansion of granulation, filling, and packing capacities at its formulations facility, with an estimated capex of ₹25 Crores, to support growing production volumes and CDMO/CMO business.

CSR and Governance

The company was mandated to spend ₹74.46 lacs (2% of average net profits) on Corporate Social Responsibility (CSR) for FY 2025-26. Actual CSR spending during the year amounted to ₹83.53 lacs, resulting in an excess spend of ₹9,06,980 available for set-off in succeeding financial years. The amount available for set-off from the preceding financial year was ₹13.91 lacs. The Board held five meetings during FY 2025-26, and the Secretarial Audit Reports for the year contain no qualifications, reservations, adverse remarks, or disclaimers. The statutory auditors, M/s. Khandelwal Jain & Co., have issued an unqualified opinion on both standalone and consolidated financial statements for FY 2025-26.

AGM and E-Voting Details

The 67th AGM will be conducted via Video Conferencing / OAVM on August 18, 2026. Remote e-voting opens on August 15, 2026 at 09:00 A.M. and closes on August 17, 2026 at 05:00 P.M. The record date for e-voting eligibility is August 11, 2026. Business items include adoption of standalone and consolidated financial statements, declaration of dividend, re-appointment of Mr. Varun Somani (retiring by rotation), and appointment of Mrs. Namrata Somani as Director. The Annual Report is available on the company's website at www.kopran.com/investors .