Vivimed Labs Limited reported a widened consolidated net loss of ₹1,764.72 million for the financial year ended March 31, 2026, as revenue from operations declined significantly. The company's board, whose powers were suspended following the initiation of the Corporate Insolvency Resolution Process (CIRP), approved the audited financial results for the quarter and year ended March 31, 2026.

The company's consolidated revenue from operations fell to ₹699.89 million in FY26 from ₹1,162.69 million in the previous year. Total expenses rose to ₹2,526.43 million from ₹1,524.88 million, driven by increases in other expenses and employee benefit expenses. On a standalone basis, the net loss widened to ₹1,716.11 million from ₹314.96 million, with revenue dropping to ₹557.82 million from ₹1,036.04 million.

SVRL & Co., Chartered Accountants, issued a qualified opinion on the financial results. The auditors noted that the company did not recognize an interest expense of approximately ₹625.72 million on an accrual basis as of March 31, 2026. A significant portion of this amount, ₹603.22 million, pertains to borrowings from State Bank of India that have been assigned to Rare Asset Reconstruction Company Limited. The auditors stated that this non-compliance with Indian accounting standards resulted in an understatement of the reported loss and liability.

The audit report also highlighted uncertainties regarding the company's ability to continue as a going concern due to cash losses, defaults in repayment of borrowings, and negative financial ratios. Additionally, the National Company Law Tribunal (NCLT) admitted a petition filed by an operational creditor and initiated CIRP against the company on April 15, 2026. An Interim Resolution Professional (IRP) was appointed, and the first meeting of the Committee of Creditors was held on May 13, 2026.

The company disclosed significant inventory write-downs of ₹233.08 million, primarily related to work in progress, due to a lack of working capital and marketing disruptions. Furthermore, the company is under investigation by the Central Bureau of Investigation (CBI) pursuant to a complaint filed by its former lender, State Bank of India, though this investigation is currently stayed by the Hon'ble High Court of Telangana.

Financial Performance

Vivimed Labs has confirmed to the stock exchanges that its promoters did not encumber any shares held in the company during the financial year ended March 31, 2026. This disclosure ensures that the shareholding structure remains free of liens or charges, providing stability to the company's equity base.

The company submitted the declaration to BSE Limited and the National Stock Exchange of India Limited on April 6, 2026. The filing was made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, which mandates annual disclosures regarding encumbrances on promoter holdings.

Santosh Varalwar, a promoter of the company, provided the confirmation on behalf of all promoters. The letter explicitly stated that no encumbrance was made directly or indirectly on the shares held by them in Vivimed Labs Limited during the specified period.

The filing was signed and submitted by Kopparthi Yugandhar, Company Secretary of Vivimed Labs Limited. The document included the necessary corporate identification details and was addressed to the respective stock exchanges for their records and information.