Syschem (India) Limited has accepted the resignation of M/s STAV & Co. as its statutory auditor, effective August 31, 2026, after closure of business hours.

The firm cited the expiry of its Peer Review Certificate on August 31, 2026, as the sole reason for the departure. The certificate was not renewed, rendering the firm ineligible to continue in the role under applicable professional and regulatory requirements.

Regulatory Disclosure

The company notified the BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure confirms that there are no other reasons for the resignation beyond the regulatory compliance issue regarding the peer review status.

Next Steps

Syschem (India) Limited stated it is taking necessary steps to appoint a new statutory auditor in accordance with the Companies Act, 2013, and SEBI LODR Regulations. STAV & Co. has committed to providing all necessary cooperation and records to ensure a smooth transition for the incoming auditor.

Syschem (India) Limited Syschem reported a net loss of ₹1.85 crore for the quarter ended June 30, 2026, reversing its profitability stance from the same period last year. The company posted an income from operations of ₹12,598.47 lakh, a marginal decline from ₹12,676.35 lakh in Q1FY25. This operational dip contributed to a pre-tax loss of ₹145.24 lakh, compared to a profit of ₹167.35 lakh in the corresponding quarter of the previous fiscal year. The widening loss is primarily attributed to significant fluctuations in foreign exchange rates and heightened volatility in global financial markets arising from ongoing geopolitical and economic uncertainties.

The Board of Directors approved the unaudited financial results at their meeting held on August 4, 2026. The figures were reviewed by the Audit Committee and subsequently examined by the Statutory Auditors in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company disclosed that segment reporting under Indian Accounting Standard 108 is not applicable as it operates solely in the pharmaceutical products (API) segment.

Financial Performance Metrics

The following table outlines the key financial indicators for Syschem (India) Limited for Q1FY27 compared to previous periods:

Note: All figures are in Rupees Lakh unless specified otherwise.

Operational Context and Strategic Outlook

Despite the decline in revenue, the company maintained strong operational efficiency through disciplined cost management, optimized production planning, and effective strategic execution. Continued focus on operational excellence, prudent resource utilization, and customer engagement enabled the company to sustain business continuity. Management highlighted that core business operations remained stable despite near-term challenges.

The company is pursuing growth through dedicated manufacturing expansion for Amoxicillin, Cloxacillin sodium, Flucloxacillin sodium, and Dicloxacillin sodium plants. Additionally, Syschem is focused on achieving WHO-GMP certification to strengthen global quality standards and regulatory compliance. The workforce has grown significantly, bringing together experienced professionals to support these initiatives.

What the Numbers Show

The shift from profit to loss in Q1FY27 highlights margin pressure despite relatively stable revenue levels compared to the previous year. While income from operations remained nearly flat YoY, the bottom line deteriorated significantly. EBITDA moderated sharply to ₹38 lakh in Q1FY27 from ₹247 lakh in Q1FY26 and ₹551 lakh in Q4FY26. This divergence between stable revenue and collapsing operating profit indicates that the losses are driven by non-operational factors, specifically foreign exchange fluctuations, rather than a collapse in core demand or pricing power. The full year FY26 saw a net profit of ₹1,092.90 lakh, suggesting that the current quarter's performance is an outlier against the broader annual trend.