Syncom Formulations has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026. The submission, made pursuant to Regulation 34(2)(f) of the SEBI (LODR) Regulations, 2015, outlines the company’s environmental, social, and governance disclosures.

The report confirms that pharmaceutical manufacturing accounts for 92.62% of the entity’s turnover. Exports remain a dominant revenue driver, contributing 82.94% of total standalone sales turnover of ₹48,657.28 lakh. Domestic sales accounted for the remaining 17.05%.

Workforce and Governance

As of March 31, 2026, the company employed a total of 2,429 employees and 361 workers. Permanent employees constituted the majority of the staff, with 717 individuals in that category. The gender distribution shows 94% male and 6% female representation among employees.

Turnover rates for permanent employees stood at 28% in FY26, an increase from 25% in FY25 and significantly lower than the 39% recorded in FY24. For permanent workers, the turnover rate remained stable at 9% compared to 8% in the previous year.

Environmental Disclosures

Total energy consumption rose to 65,68,586.4 units in FY26 from 53,37,685 units in FY25. Renewable energy sources contributed 11,76,680.4 units, while non-renewable sources accounted for 53,91,906 units. Water withdrawal remained largely consistent at 48,114 kilolitres, down slightly from 48,633 kilolitres in the prior year.

What the Numbers Show

The data reveals a distinct divergence in employee retention stability between fiscal years. While the overall turnover rate for permanent employees decreased from 39% in FY24 to 25% in FY25, it rebounded to 28% in FY26. This volatility contrasts with the steady 9% turnover rate for permanent workers over the same period, suggesting differing retention dynamics between salaried staff and industrial labor.

The company reported no fatalities or high-consequence work-related injuries in FY26. Air emissions metrics showed reductions in NOx (58.94 mg/m³ vs 65.42 mg/m³) and SOx (39.86 mg/m³ vs 44.2 mg/m³) compared to the previous year.

Syncom Formulations (India) Limited reported a consolidated net profit of ₹2484.68 lakh for the quarter ended June 30, 2026, marking a 57.7% year-on-year increase from ₹1575.44 lakh in Q1FY26. The pharmaceutical manufacturer’s standalone net profit rose 56.3% to ₹2458.92 lakh, driven by improved operating leverage and significant expansion in EBITDA margins. This performance highlights strong profitability in its core drugs and formulations segment amidst moderate revenue growth.

The Board of Directors approved the unaudited financial results at a meeting held on August 11, 2026, in Indore. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Sanjay Mehta & Associates, in compliance with Regulation 33 of the SEBI (LODR) Regulations, 2015. Chairman and Wholetime Director Ankit Kedarmal Bankda signed off on the filings, which were subsequently submitted to the BSE and NSE. The company also published the extract of results in the Free Press Journal on August 12, 2026.

Financial Performance Highlights

Standalone revenue from operations grew 6.9% YoY to ₹12465.95 lakh, up from ₹11654.69 lakh in Q1FY26. Total income stood at ₹13247.75 lakh, compared to ₹12256.66 lakh in the prior year period. On a consolidated basis, revenue from operations increased 7.3% YoY to ₹12552.64 lakh, while total income reached ₹13335.58 lakh. The consolidated EBITDA margin expanded significantly to 20.87% from 13.52% in the year-ago period, reflecting strong operating leverage and improved cost efficiency.

The following table summarises key financial metrics across both standalone and consolidated bases:

Profit before tax on a standalone basis was ₹3190.88 lakh, up from ₹2025.83 lakh in Q1FY26. Consolidated profit before tax rose to ₹3225.22 lakh from ₹2029.24 lakh. Tax expense remained stable at ₹731.96 lakh (standalone) and ₹740.54 lakh (consolidated), resulting in effective tax rates of approximately 22.9% for both bases.

Segment-Wise Breakdown

The Pharmaceuticals Drugs & Formulations segment contributed ₹13135.78 lakh (standalone) and ₹13223.61 lakh (consolidated) to total segment revenue, representing over 99% of income. This segment generated a pre-tax profit of ₹3134.50 lakh (standalone) and ₹3170.25 lakh (consolidated), demonstrating strong operational efficiency.

Trading of Commodities and Renting of Property contributed minimally, with combined revenues of ₹111.97 lakh (standalone) and ₹111.97 lakh (consolidated). Segment assets totaled ₹54761.88 lakh (standalone) and ₹55298.95 lakh (consolidated), reflecting continued investment in manufacturing infrastructure and property holdings.

What the Numbers Show

A key analytical observation is the divergence between revenue growth and expense management. While revenue grew nearly 7%, total expenses decreased slightly on a standalone basis from ₹10234.96 lakh to ₹10056.87 lakh, indicating improved cost control. This efficiency gain significantly amplified profit margins, with PBT margins expanding from 17.3% to 24.1%. Additionally, the company corrected its EPS calculation method to comply with Ind AS 33, restating comparative EPS from ₹0.21 to ₹0.17 for Q1FY26 to reflect profit after tax rather than total comprehensive income.