Lactose (India) Limited reported a net profit of ₹236.56 lakh for the first quarter ended June 30, 2026, marking a 58% increase from ₹149.86 lakh in the same period last year. Revenue from operations rose 19% year-on-year to ₹4,696.84 lakh, reflecting stronger operational performance in its pharmaceutical segment. The Board of Directors approved the unaudited financial results on August 11, 2026, following a review by the Statutory Auditor, D M K H & Co.

The profit growth was supported by improved top-line figures, although cost of materials consumed increased significantly to ₹3,249.18 lakh compared to ₹1,563.63 lakh in Q1FY25. Despite higher input costs, the company managed to expand its pre-tax profit to ₹323.32 lakh from ₹228.87 lakh in the prior year period. Basic earnings per share (EPS) stood at ₹1.88, up from ₹1.19 in Q1FY25.

Key Financial Metrics

In a separate corporate action, the Board approved the forfeiture of 15,00,000 convertible share warrants issued on December 5, 2024. The warrants, issued at ₹174 each, expired on June 5, 2026, without exercise by the allottees. Consequently, the upfront amount of ₹652.50 lakh (representing 25% of the issue price) received during allotment has been forfeited and transferred to Capital Reserve in compliance with SEBI regulations.

What the Numbers Show

While revenue growth is robust, the sharp rise in material costs warrants attention. Cost of materials consumed more than doubled year-on-year, increasing by over 100%, which suggests potential margin pressure if input prices remain elevated. However, the company successfully passed on some of these costs or optimized other expense lines, as total expenses grew at a slower rate (17.5%) than revenue (18.7%), leading to an expansion in pre-tax profits.

The company continues to pursue strategic consolidation through its Scheme of Arrangement for merger with Vitanosh Ingredients Private Limited. The scheme was approved by shareholders at the Extraordinary General Meeting held on March 28, 2026, and is currently pending final approvals from the Securities and Exchange Board of India and the National Company Law Tribunal. No accounting effect of the merger has been recognized in the current quarter’s financials.

lactose has scheduled a board meeting for June 18, 2026, to consider the forfeiture of 15,00,000 convertible share warrants. The warrants were allotted on a preferential basis to M/s. SG General Dealers LLP. The forfeiture action is being taken due to the non-payment of the balance consideration required for the conversion of these warrants into equity shares within the stipulated period.

The board will address the non-compliance regarding the terms of the issue and the applicable provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The meeting will also consider any other business with the permission of the chair.

Agenda Details

The primary agenda item for the meeting is the forfeiture of the warrants. The specific details of the warrants and the reason for the proposed forfeiture are outlined below:

The meeting is set to take place at 15:00 p.m. at the corporate office in Mumbai. The intimation was submitted to BSE Limited pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.