Mangalam Drugs & Organics Limited reported a narrowing of losses in its first quarter of FY26, driven by improved operational efficiency despite flat top-line growth. The company posted a standalone net loss of ₹755.36 lakh for the quarter ended June 30, 2026, compared to a net loss of ₹1,372.80 lakh in the corresponding period of FY25. On a consolidated basis, the net loss stood at ₹763.88 lakh against ₹1,379.83 lakh in Q1FY25.

Revenue from operations remained stable at ₹5,711.93 lakh, virtually unchanged from the ₹5,720.87 lakh recorded in Q1FY25. Total income for the quarter was ₹5,723.10 lakh, with other income contributing a marginal ₹11.17 lakh. The consolidated revenue figures mirrored the standalone performance, reflecting the non-material nature of its subsidiary, Mangalam Laboratories Private Limited.

Financial Performance Overview

The improvement in bottom-line figures was primarily attributable to better cost management and inventory utilization. Cost of materials consumed rose to ₹3,359.45 lakh from ₹2,333.37 lakh in Q1FY25, but this was offset by a reduction in inventory build-up. Changes in inventories showed a credit of ₹44.22 lakh in Q1FY26, compared to a debit of ₹1,624.53 lakh in the prior year quarter, indicating more efficient working capital deployment.

Finance costs increased slightly to ₹367.53 lakh from ₹404.45 lakh in Q1FY25, while employee benefits expenses declined to ₹882.37 lakh from ₹931.25 lakh. Other expenses, which include power, fuel, and pollution control costs, totaled ₹1,425.04 lakh, up from ₹1,296.02 lakh in the previous year. Power and fuel expenses specifically rose to ₹568.58 lakh from ₹446.30 lakh.

What the Numbers Show

A key divergence in the financials is the relationship between revenue stability and expense contraction. While revenue remained flat, total expenses fell by approximately 9% year-on-year. This suggests that the company is managing fixed costs effectively despite higher input material costs. The shift in inventory accounting—from a significant expense in Q1FY25 to a minor credit in Q1FY26—played a crucial role in reducing the overall loss, highlighting the impact of production scheduling on interim profitability.

Corporate Governance Updates

During its meeting on August 12, 2026, the Board of Directors approved several governance-related appointments. The company appointed M/s S.N. Nanda & Co., Chartered Accountants, as Statutory Auditors for a five-year term commencing from the conclusion of the 53rd AGM. Additionally, M/s L.N. Joshi & Co., Practicing Company Secretaries, was appointed as Secretarial Auditors for the same period. Both appointments are subject to shareholder approval at the ensuing Annual General Meeting.

The unaudited financial results were reviewed by V.S. Somani & Co., Chartered Accountants, who expressed an unmodified opinion. The company continues to operate within a single reportable business segment: manufacturing of bulk drugs.

Mangalam Drugs and Organics Limited has intimated the stock exchanges of the resignation of its Secretarial Auditor, M/s. Ragini Chokshi & Co., Practising Company Secretaries (FRN: 92897), effective August 4, 2026. The disclosure was made on August 6, 2026, pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resignation letter was submitted by CS Abhishek Shukla, Partner of M/s. Ragini Chokshi & Co., directly to the Members and Board of Directors of the company.

Resignation Details

The following key details of the resignation have been disclosed by Mangalam Drugs and Organics, as required under SEBI Circular bearing reference no. SEBI/HO/CFD-PoD-1/CIR/2023/123 dated July 13, 2023:

Reason Cited by the Auditor

In the resignation letter dated August 4, 2026, CS Abhishek Shukla stated that due to pre-occupancy with professional commitments and other unavoidable reasons, he was unable to devote the necessary time and attention required for carrying out the Secretarial Audit assignment in the manner expected. Accordingly, he considered it appropriate to step down from the said assignment. The company has been requested to take the resignation on record and complete all necessary formalities.

Regulatory Compliance

The intimation was filed by Shweta Patel, Company Secretary (M. No. 74085), on behalf of Mangalam Drugs and Organics. The disclosure, along with the resignation letter from M/s. Ragini Chokshi & Co., has been submitted to both BSE Ltd and the National Stock Exchange of India Limited in compliance with applicable SEBI listing regulations.