Medicamen Organics Limited reported a consolidated net loss of ₹401.94 lakh for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹404.71 lakh recorded in the previous year. Total revenue for the period fell to ₹2270.91 lakh from ₹3828.27 lakh in FY25, driven by a decrease in revenue from operations. The company's board approved the audited standalone and consolidated financial results for the half-year and financial year ended March 31, 2026, during a meeting held on May 29, 2026.

The statutory auditors, M/s N C Raj & Associates, issued an audit report with an unmodified opinion on the financial results. However, the auditors included an emphasis of matter paragraph noting that the company did not make provisions for legal cases filed by creditors Prakash Parcel Services Limited and Multani Pharmaceuticals Limited, as the matters are pending in court. Additionally, no provision was made for demands raised by tax authorities, including Income Tax and GST, which are currently under appeal.

Financial Performance

The standalone financial results for FY26 reflected a net loss of ₹304.54 lakh, compared to a net profit of ₹327.08 lakh in the previous year. Revenue from operations dropped to ₹2164.80 lakh from ₹3708.77 lakh in FY25. Total expenses for the year increased to ₹2602.48 lakh from ₹3279.58 lakh in the prior year, primarily due to higher costs of materials consumed and employee benefits expenses.

Consolidated Results

Asset Quality and Provisions

The auditor's report highlighted that the company wrote off an amount of ₹33.09 lakh representing an outstanding GST refund balance deemed no longer recoverable. In the consolidated results, the subsidiary Grande Etoile Pharmaceuticals Limited wrote off a receivable of ₹110 lakh from Medi Hub Organic Limited, Nepal, due to the project's non-implementation and the customer's inability to pay. The management assessed that the recoverable amount of assets remains higher than their carrying value, and thus no impairment was recorded.

Fund Utilization

The company reported a deviation in the utilization of proceeds from its Initial Public Offering (IPO). Shareholders approved a variation in the objects of the issue via a special resolution on February 26, 2026. Unutilized IPO proceeds amounting to ₹162.44 lakh, originally allocated for product registration in international markets, were reallocated to meet working capital requirements. For the preferential issue of share warrants, the company confirmed that funds were utilized in accordance with the disclosed objects, with no deviation reported.

Medicamen Organics Limited has approved the amended Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI). The Board of Directors approved the code on May 29, 2026, in compliance with Regulation 8(2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. The amended code is effective from May 29, 2026.

The code establishes a framework for the fair disclosure of events that could impact price discovery for the company's securities. It mandates that UPSI be handled on a need-to-know basis and defines the policy for determining legitimate purposes for sharing such information. The company must ensure timely and adequate disclosure of UPSI to prevent misuse and maintain uniformity in dealing with stakeholders.

Key Provisions

The code designates the Company Secretary & Compliance Officer as the Chief Investor Relations Officer (CIRO). This officer is responsible for disseminating information, determining whether information constitutes UPSI, and responding to market rumours. In the absence of the Company Secretary, the Board may authorise another senior officer to perform these duties.

Structured Digital Database

The Board or the Compliance Officer must maintain a Structured Digital Database (SDD) containing details of shared UPSI. This includes the nature of the information and the names and addresses of individuals who shared or received the information. The SDD must be preserved for at least eight years after the completion of relevant transactions or until the conclusion of any proceedings.

Protection Against Retaliation

The code includes provisions to protect employees who file a Voluntary Information Disclosure Form with SEBI. Such employees shall not be discriminated against, discharged, demoted, suspended, threatened, or harassed for filing the form, testifying in investigations, or aiding SEBI in enforcement actions.

The Audit Committee will review compliance with the code at least once a financial year. The code supersedes the previous version and is subject to review by the Board as necessary.