Smruthi Organics reported a 3.85% decline in net profit to Rs 342.57 lakh for the financial year ended March 31, 2026. Revenue from operations fell 19.08% to Rs 10,196.71 lakh, driven by lower volumes in select domestic and export product categories and pricing pressure in the market. Despite the revenue decline, the company achieved a significant improvement in profitability, with EBITDA margin expanding by 316 basis points to 12.89%.

The company’s Board of Directors has recommended a dividend of Rs 1.50 per equity share (15%) for the year ended March 31, 2026. The record date for determining shareholder eligibility for the dividend is July 31, 2026. The Annual General Meeting is scheduled for August 10, 2026.

Financial Performance

The decline in revenue was partially offset by a strategic focus on value-driven pricing and export orders with better realisations, which helped cushion the impact of volume softness. EBITDA grew 7.25% to Rs 1,316 lakh, reflecting improved operational efficiencies, better product mix, and disciplined resource utilisation. Finance costs fell 9.92% to Rs 168.45 lakh due to improved working capital management.

Profit Before Tax stood at Rs 466.43 lakh compared to Rs 490.00 lakh in the prior year. The marginal decline in Profit After Tax was largely attributable to a one-time exceptional provision of Rs 46.26 lakh related to the statutory impact of the new Labour Codes. Adjusted for this item, the company delivered improved underlying profitability.

Operational Highlights

The company continued its efforts on alternate sourcing, vendor consolidation, and backward integration to reduce input cost dependence. Raw material consumption declined by 33.35% compared to the previous year. Employee costs grew during the year as the company strengthened its quality, regulatory, and production teams in preparation for regulatory inspections and market entry in European and other regulated markets.

A landmark regulatory milestone was achieved during the year with the receipt of approval from the European Directorate for the Quality of Medicines & HealthCare (EDQM). This certification qualifies the company's APIs for supply to European Union markets and is expected to be a meaningful contributor to export revenue. The company is also expecting a regulatory inspection by ANVISA, Brazil.

At the end of FY 2025–26, the Board decided to discontinue the Finished Dosage Formulations (FDF) business unit to focus on its core Active Pharmaceutical Ingredient (API) manufacturing. The wind-down of FDF operations is expected to be completed during the current year and is not anticipated to have a material adverse impact on the financial position.

Smruthi Organics Limited announced its audited standalone financial results for the year ended March 31, 2026, following a board meeting held on May 13, 2026. The company reported a net profit of ₹342.57 lakh for the fiscal year, compared to ₹356.29 lakh in the previous year. Revenue from operations for FY26 stood at ₹10,196.71 lakh, a decrease from ₹12,600.79 lakh in the prior year. The board also disclosed key corporate calendar dates, including the scheduling of the 37th Annual General Meeting (AGM) and the record date for dividend payment. Subsequently, the company formally intimated BSE Limited on May 14, 2026, confirming Friday, July 31, 2026 as the record date for determining members eligible to receive the dividend for FY 2025-26.

Financial Performance

For the fourth quarter ended March 31, 2026, the company recorded a net profit of ₹106.70 lakh on revenue from operations of ₹2,908.87 lakh. Total expenses for the quarter were reported at ₹2,735.67 lakh. The board approved the audited financial results, which received an unmodified opinion from the statutory auditors, M/s Gokhale & Sathe, Chartered Accountants.

Key Financial Metrics

The following table outlines the standalone financial performance for the year and quarter ended March 31, 2026:

Dividend Declaration and AGM Details

The board of directors has recommended a dividend of ₹1.50 per equity share (15%) for the financial year ended March 31, 2026, payable on 1,14,46,290 equity shares of ₹10 each. This dividend is subject to the approval of shareholders at the 37th Annual General Meeting, which has been fixed for Monday, August 10, 2026, to be held through Video Conferencing (VC) or other Audio-Visual Means (OAVM) in accordance with relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. The dividend, if declared at the AGM, shall be paid within the prescribed statutory timelines.

Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members and Share Transfer Books of the company will remain closed from Saturday, August 1, 2026 to Monday, August 10, 2026 (both days inclusive) for the purpose of the AGM and payment of dividend. The record date for dividend eligibility has been set as Friday, July 31, 2026. The dividend will be paid to shareholders whose names appear as beneficial owners in the records of National Securities Depository Limited and Central Depository Services (India) Limited, or as members in the Register of Members, as at the end of business hours on July 31, 2026.

Corporate Calendar

The following table summarises the key dates announced by the board:

Management Changes

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the board disclosed the appointment of Ms. Smruthi Purushotham Eaga (DIN: 09268342) as a Whole Time Director (Executive) for a period of three years, effective from June 1, 2026. This represents a change in designation from her previous role as Non-Executive (Non-Independent) Director of the company. The appointment is based on the recommendation of the Nomination and Remuneration Committee and is subject to shareholder approval at the upcoming AGM.

Ms. Smruthi Purushotham Eaga holds an MS Degree in Pharmacy from the USA and has previously worked with the company as a Business Development Executive. She has also worked in different companies in the US for about 5 years. Since FY 2021-2022, she has handled International Marketing activities of the company, particularly in Central and South American Markets, involving identification, interaction, development, and monitoring of customers for the company's existing products. She is the daughter of Mr. Purushotham Eaga, Chairman and Managing Director, and sister of Mr. Swapnil Eaga, Joint Managing Director & CFO.

Appointment Details

The following table summarises the key details of the management change: