Natural Capsules Limited has released the final voting results and scrutinizer’s report for its 33rd Annual General Meeting (AGM), which was conducted through video conferencing on August 12, 2026. The meeting, chaired by Independent Director Tekkar Yashwanth Prabhu, saw the approval of all six resolutions proposed by the board.

The company provided remote e-voting facilities from August 8 to August 11, 2026, with an additional window during the virtual meeting. Deepak Sadhu of Deepak Sadhu & Co served as the scrutinizer for the process. The record date for the meeting was August 5, 2026, with a total of 9,061 shareholders on record.

Voting Results Overview

All resolutions were passed with significant support from the promoter group, which holds 5,301,248 shares. Public non-institutional shareholders participated with 14,895 votes polled across various resolutions. No public institutional shares voted.

Key Governance Approvals

The ordinary business included the adoption of audited consolidated and standalone financial statements for the fiscal year ended March 31, 2026. This resolution received near-unanimous support, with only 184 votes cast against it out of over 5.3 million votes polled.

Shareholders also approved the following governance matters:

• Reappointment of Mrs. Jyoti Mundra as a director retiring by rotation.
• Reappointment of Mr. Laxminarayan Moondra as a director retiring by rotation.
• Reappointment of Mr. Laxminarayan Moondra as Whole Time Director for a three-year term with revised remuneration (Special Resolution).
• Approval of related party transactions with subsidiary Natural Biogenex Private Limited.
• Revision in remuneration for Mr. Shrey Mundra, General Manager – Marketing.

Promoter vs Public Participation

The promoter group demonstrated high engagement, voting in favor of all resolutions. For the financial statement adoption, promoters cast 5,298,987 votes in favor with zero against. Public non-institutional shareholders showed slightly more dissent, casting between 184 and 284 votes against specific resolutions, though their overall support remained above 98%.

No invalid votes were recorded for any resolution. The total number of members participating in e-voting ranged from 35 to 41 across different resolutions, reflecting varying levels of engagement among the 9,061 registered shareholders.

Natural Capsules reported a challenging first quarter of FY27, with revenue contracting 17% year-on-year to ₹48.71 crore. Despite the top-line decline, the company managed to expand its EBITDA margin by 2 basis points to 2.30%, driven by improved realisations and timely pass-through of input cost increases. However, the net loss widened by 15% to ₹5.74 crore, compared to ₹4.96 crore in the corresponding quarter last year.

Financial Performance

The quarter’s financials reflect operational headwinds offset by margin preservation efforts and a sharp rise in non-operating income. While EBITDA fell 16% year-on-year to ₹1.12 crore, it rose 251% sequentially, indicating a recovery from the previous quarter’s low base. A significant development was the surge in other income, which jumped 556% year-on-year to ₹2.35 crore, up from ₹0.36 crore in Q1FY26. Conversely, finance costs nearly doubled, rising 97% year-on-year to ₹4.97 crore from ₹2.53 crore, exerting pressure on the bottom line.

What the Numbers Show

A significant divergence exists between operating performance and bottom-line results. While EBITDA improved sharply on a sequential basis (+251%), the net loss widened slightly (+3% QoQ). This suggests that fixed overheads, particularly the 97% year-on-year spike in finance costs, absorbed much of the operating gain. Furthermore, the 17% year-on-year revenue decline occurred alongside a 2 bps margin expansion, indicating that pricing power or mix shifts helped preserve profitability despite lower volumes. The substantial rise in other income (₹2.35 crore) partially mitigated the impact of high interest expenses on the final net loss figure.

Operational Updates

Sunil Mundra, Managing Director, noted that the reported numbers are not directly comparable to the preceding quarter, which benefited from the dispatch of deferred inventory following a plant shutdown in Puducherry. On an underlying basis, management described the performance as healthy.

Key operational developments include:

• ERP Disruption: Implementation of a new ERP system near the end of the quarter caused brief disruptions to billing and dispatch, pushing sales from the final five days into Q2. Management stated this impact modestly suppressed reported revenue.
• HPMC Segment: Due to erratic demand and duty uncertainty in the US market, the company temporarily converted one HPMC production line to gelatine capsules to optimise capacity utilisation. A second line is expected to follow next month.
• API Business: Geopolitical uncertainties and currency fluctuations (appreciating Chinese yuan, depreciating Indian rupee) weighed on African export volumes routed through merchant exporters.

Strategic Progress

Despite near-term pressures, Natural Capsules made strategic strides in its API segment. The company commenced its first batch under a contract manufacturing agreement with Fermbox Bio in August and signed a new deal with a Mumbai-based client. Technically, prednisolone synthesis was completed at gram-scale batches, with full backward-integrated production expected by September. Additionally, a fermentation step was transitioned to an enzymatic route, improving yields and cost efficiency.

Regulatory progress includes the initiation of the WHO GMP application process, with an audit expected by the end of Q2FY27. The company also appointed a Chief Operating Officer for the API business, leveraging over 30 years of industry experience.

Mundra expressed confidence in sustained performance for the capsules business through the fiscal year, citing firm demand trends into Q2FY27 and improved visibility across segments.