Lyka Labs Annual Report FY2025-26: Consolidated Revenue Declines, Net Loss Widens on Exceptional Impairment Charge

Lyka Labs Limited has filed its Annual Report for the financial year ended 31st March, 2026, pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was filed on 17th July, 2026, and the company's 47th Annual General Meeting (AGM) is scheduled for Monday, 10th August, 2026 at 12:30 P.M. through Video Conferencing (VC)/Other Audio Visual Means (OAVM).

Financial Performance: Standalone and Consolidated Results

The company reported a decline in revenue and a swing to net losses on both standalone and consolidated bases for the financial year ended 31st March, 2026. The following tables summarise the key financial results:

Standalone Financial Results (Rs. in Lakhs)

Particulars:	FY 2025-26	FY 2024-25
Total Revenue:	12,487.97	13,745.74
Profit/(Loss) before Exceptional Items:	(1,022.09)	1,110.16
Exceptional Items:	2,301.44	-
Profit/(Loss) before Tax:	(3,323.53)	1,110.16
Less: Tax Expenses:	(94.69)	318.35
Profit/(Loss) after Tax:	(3,228.84)	791.81
Other Comprehensive Income:	(14.40)	18.29
Profit/(Loss) for the Year:	(3,243.24)	810.10

Consolidated Financial Results (Rs. in Lakhs)

Particulars:	FY 2025-26	FY 2024-25
Total Revenue:	13,194.24	14,072.71
Profit/(Loss) before Exceptional Items:	(1,177.94)	1,112.49
Exceptional Items:	-	-
Profit/(Loss) before Tax:	(1,177.94)	1,112.49
Less: Tax Expenses:	(134.38)	319.17
Profit/(Loss) after Tax:	(1,043.56)	793.32
Other Comprehensive Income:	(14.40)	18.08
Profit/(Loss) for the Year:	(1,057.96)	811.41

The standalone loss was primarily driven by an exceptional impairment charge of Rs. 2,301.44 Lakhs related to the company's investment in and outstanding loans given to its subsidiary, Lyka BDR International Limited. The Board of Directors has not recommended any dividend for the financial year ended 31st March, 2026.

Operational Highlights and Business Overview

During the financial year under review, the company invested in building brands and distribution networks in its Human and Veterinary Healthcare segments, both in domestic and international markets. The export business did not meet expectations, as international government tenders had exhausted their budgets, and certain markets experienced foreign exchange fluctuations and political uncertainty, leading to delayed purchases. The company operates in a single segment — pharmaceuticals — and manufactures products including Dry Powder, Liquid, Lyophilised Injections, and External Preparations for domestic and international markets.

Key operational and product development highlights during the year include:

The company submitted 24 new applications for product registration, received registration for 2 products, and obtained renewal for 5 products; registration for 19 products is expected in the upcoming financial year.
The R&D department successfully developed new formulations in Injectables (Lyophilised, Liquid, and Dry Powder Injections) and Topical Preparations (Ointments, Creams, and Lotions).
The company successfully launched its patented product Pregabalin Gel in India after completing clinical trials and receiving CDSCO approval in November 2024.
The company ventured into Gynaecology and Assisted Reproductive Technology (ART) through its new division, FertiNova, targeting advanced IVF solutions and women's health therapies.
The company is upgrading and expanding its lyophilisation capacity by 50%, with the project expected to be completed in Calendar year 2026, supporting entry into regulated markets such as Europe and the UK.

Foreign Exchange Transactions (Rs. in Lakhs)

Particulars:	2025-2026	2024-25
Foreign Exchange Earnings:	2377.59	3,405.32
Foreign Exchange Outgo:	131.22	839.25

Key Financial Ratios

The company disclosed the following key financial ratios for FY2025-26 compared to the previous year:

Ratio:	FY 2025-26	FY 2024-25	% Change
Current Ratio (times):	1.13	1.56	-27.42%
Debt-Equity Ratio (times):	0.58	0.33	74.02%
Debt Service Coverage Ratio (times):	-3.41	0.75	-554.45%
Return on Equity Ratio:	-0.31	0.08	-506.41%
Net Profit Margin:	(27.95)%	6.11%	-557.60%
Operating Profit Margin:	(24.74)%	9.95%	—
Return on Capital Employed:	(21.61)%	8.12%	-366.11%

The negative ratios are primarily attributable to the net losses incurred during the year, including the exceptional impairment charge on the subsidiary.

Scheme of Amalgamation: Merger of Lyka Exports Limited

A significant corporate development during the year was the sanction of the Scheme of Amalgamation for the merger of Lyka Exports Limited (Transferor Company) with Lyka Labs Limited (Transferee Company) by the Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench, vide its order dated 16th March, 2026. The scheme was accounted for using the Pooling of Interests Method under Appendix C of Ind AS 103, with a retrospective appointed date of 1st April, 2022. The Company filed Form INC-28 with the Registrar of Companies on 8th April, 2026, and the scheme became legally effective thereafter. Pursuant to the scheme, 4,62,711 fully paid-up equity shares of Rs. 10 each are to be allotted to eligible shareholders of the erstwhile Lyka Exports Limited; the allotment was pending as on the reporting date.

AGM Agenda and Related Party Transactions

The 47th AGM agenda includes adoption of audited financial statements, re-appointment of Mr. Shashil Philip Mendonsa as a Director retiring by rotation, ratification of Cost Auditor remuneration, and approval of material related party transactions. The company is seeking shareholder approval for transactions with IPCA Laboratories Limited — a promoter holding 14,624,923 equity shares (40.98%) in Lyka Labs Limited — for an aggregate value not exceeding ₹75,00,00,000 (Rupees Seventy Five Crores only) during FY 2026-27. The proposed transactions include sale/purchase of materials and goods, contract manufacturing, and availing of Inter-Corporate Deposits (ICD).

Category:	Amount (Cr.) FY 2026-27
Sale/Purchase of Materials, Goods, Services, Assets:	55.00
Availing ICD:	20.00
Total:	75.00

For comparison, the aggregate value of transactions with IPCA Laboratories Limited during FY 2025-26 was Rs. 29.18 Cr. The proposed transactions represent 58.39% of the company's annual consolidated turnover for the immediately preceding financial year.

Corporate Social Responsibility

During FY 2025-26, the company was required to spend Rs. 4.35 Lakhs towards CSR activities. The company incurred CSR expenditure of Rs. 7.20 Lakhs, resulting in an excess spend of Rs. 2,85,391 available for set-off in succeeding financial years. The CSR activity supported promoting education, including special education and employment-enhancing vocational skills, through JUJVA VIBHAG KELAVANI MANDAL in Gujarat.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.57%	-9.85%	-7.09%	-14.48%	-44.50%	+0.05%

Lyka Labs Limited has scheduled its 47th Annual General Meeting (AGM) for August 10, 2026, to be conducted through video conferencing. The meeting is set to commence at 12:30 p.m. IST, allowing shareholders to participate remotely without physical presence at a common venue.

The company has filed a disclosure with BSE Limited and the National Stock Exchange of India Limited confirming the publication of newspaper advertisements regarding the AGM. These advertisements were issued in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and relevant circulars from the Ministry of Corporate Affairs and SEBI.

Publication Details

The advertisements were published in the following editions to inform shareholders about the upcoming meeting:

Sr. No.	Name of Newspaper(s)	Edition(s)	Publication Date
1	Financial Express - English	All	July 8, 2026
2	Loksatta-Jansatta - Gujarati	Bharuch	Not specified in text

The information regarding the AGM is also accessible on the company's official website. The filing was submitted by Shailendra Agrawal, Company Secretary and Compliance Officer, on July 8, 2026.