Vista Pharmaceuticals Limited reported a net loss of ₹98.59 lakh for the quarter ended June 30, 2026, narrowing from a net loss of ₹129.04 lakh in the corresponding period of the previous year. The company recorded nil revenue from operations for the quarter, a significant decline from ₹151.88 lakh in Q1FY25.

The Hyderabad-based pharmaceutical manufacturer disclosed severe liquidity constraints during the period. Its credit facilities were classified as Non-Performing Assets (NPA) by lenders following a default in debt servicing for over 90 days. This classification resulted in a freeze on all working capital accounts, temporarily constraining operational liquidity.

Financial Performance

Total income for the quarter stood at ₹3.99 lakh, derived entirely from other income, as operational revenue remained at zero. Total expenses amounted to ₹136.70 lakh, driven primarily by employee benefits of ₹51.15 lakh and finance costs of ₹33.59 lakh.

The loss before tax narrowed to ₹132.71 lakh from ₹148.01 lakh in Q1FY25. Deferred tax credits of ₹34.12 lakh reduced the final net loss position. Basic earnings per share (EPS) were negative ₹0.16, compared to negative ₹0.22 in the prior year quarter.

Going Concern & Liquidity Risks

The company’s auditors highlighted a material uncertainty that may cast significant doubt on Vista Pharmaceuticals’ ability to continue as a going concern. Current liabilities exceeded current assets by ₹183.32 lakh as of June 30, 2026, reflecting negative working capital. The company has incurred cash losses for six consecutive years.

Management stated it is actively negotiating debt restructuring with lenders and implementing cost-rationalisation measures. To support operations, the company has secured a formal financial undertaking from subscribers of convertible share warrants to pay call money amounting to ₹922.49 lakh. The company has issued 10,249,998 convertible share warrants and received an upfront subscription of ₹307.50 lakh, with the balance due before September 19, 2026.

Statutory Liabilities & Compliance

Vista Pharmaceuticals disclosed outstanding statutory liabilities totaling approximately ₹44.68 lakh as of the quarter end. These include:

• Provident Fund payable: ₹33.15 lakh
• Tax Deducted at Source (TDS) payable: ₹7.16 lakh
• Employees' State Insurance payable: ₹2.44 lakh
• Professional Tax payable: ₹1.93 lakh

The delay in payments is attributed to working capital management challenges, with no pending disputes with statutory authorities. The unaudited financial results were reviewed by A.M Reddy & D.R Reddy, Chartered Accountants, and approved by the Board of Directors on August 14, 2026.

Vista Pharmaceuticals Limited reported a widened net loss of ₹1,206.12 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹464.87 lakh in the previous year. The company's revenue from operations fell to ₹539.95 lakh from ₹1,007.46 lakh in FY25. For the quarter ended March 31, 2026, the company reported a net loss of ₹586.29 lakh with zero revenue from operations.

The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026. The statutory auditors, M/s. A.M Reddy & D.R. Reddy, issued an unmodified opinion on the financial results. Additionally, the Board appointed M/s. LMN & Co., Chartered Accountants, as internal auditors for the financial year 2026-27.

Financial Performance

The company's total income for FY26 stood at ₹571.45 lakh, a decrease from ₹1,051.52 lakh in the previous year. Total expenses increased to ₹2,186.58 lakh from ₹1,580.51 lakh in FY25. The basic and diluted earnings per share for FY26 were reported as a loss of ₹1.96 per equity share, compared to a loss of ₹0.79 per share in the previous year.

Key Disclosures

During the year, the company recognised an impairment allowance of ₹821.74 lakh on trade receivables, which were subsequently written off due to a lack of reasonable certainty of recovery. The company also issued 10,240,998 convertible share warrants and received 25% of the upfront subscription amounting to ₹307.50 lakh.

The financial statements were prepared on a going concern basis, despite the company incurring losses for the fifth consecutive year and having negative working capital of ₹133.86 lakh. The Board cited factors such as positive net worth of ₹3,644.08 lakh, promoter support of ₹581.34 lakh, and capital work-in-progress of ₹1,061.21 lakh as reasons supporting the company's ability to continue operations.