Zenlabs Ethica has published newspaper advertisements to notify shareholders of its upcoming 33rd Annual General Meeting (AGM). The notices appeared in Financial Express and Dainik Tribune on September 6, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company previously dispatched letters containing weblinks for the FY26 Annual Report to shareholders without registered email addresses on September 4, 2026. Shareholders with registered emails received the report electronically.

AGM Schedule Remains Unchanged

The AGM is scheduled for September 29, 2026, at 12:00 pm at the company’s registered office in Chandigarh. The board previously approved convening the meeting on September 2, 2026.

Key logistical details remain as follows:

• E-voting Window: September 26 to September 28, 2026.
• Voting Rights Cut-off: September 22, 2026.
• Location: Plot No. 194-195, 3rd Floor, Industrial Area, Phase-II, Chandigarh.

Agenda Highlights

The notice outlines four key items for shareholder approval at the upcoming AGM:

• Adoption of Financial Statements: Shareholders will consider the audited financial statements for FY26 ended March 31, 2026, along with the Board’s Report and Statutory Auditors’ Report.
• Director Reappointment: Mr. Sanjay Dhir (DIN: 02452461), Whole Time Director, retires by rotation and offers himself for reappointment. He holds directorships in five other companies and attended five board meetings in FY25-26.
• Auditor Reappointment: M/s N Kumar Chabbra & Co., Chartered Accountants, seeks reappointment as statutory auditor for a second consecutive term of five years (FY27–FY31). The board approved an audit fee of ₹4 lakh for FY27.
• MOA Amendment: A special resolution proposes amending Clause III(B) of the Memorandum of Association to broaden operational flexibility regarding foreign currency repatriation, contract execution, and asset management.

Auditor Details

The firm, holding FRN 000837N, was initially appointed at the 28th AGM in 2021. It holds a valid Peer Review Certificate and confirmed eligibility under the Companies Act, 2013, and SEBI LODR Regulations. The remuneration for subsequent years will be determined by the Audit Committee and Board.

Corporate Governance

Mrs. Nitika Goel of BND & Associates was appointed as the scrutinizer for the e-voting process. The Company Secretary & Compliance Officer, Nikunj Goel, signed the intimation letter dispatched to the exchange.

Zenlabs Ethica reported a significant expansion in revenue for the quarter ended June 30, 2026, but faced pressure on its bottom line, resulting in a widened net loss.

The pharmaceutical trading firm logged revenue from operations at ₹1,417.7 crore, marking a 23.5% increase from ₹1,147.7 crore in Q1FY25. This represents a strong sequential recovery as well, rising 34% from ₹1,058.4 crore in the immediately preceding quarter (Q4FY25).

Despite the robust topline performance, profitability deteriorated sharply. The company recorded a net loss of ₹57.1 crore for the quarter, a stark contrast to the net profit of ₹3.3 crore reported in Q1FY25. In the previous quarter (Q4FY25), the company had posted a marginal net profit of ₹0.1 crore.

Operational Expenses and Margin Pressure

Total expenses surged to ₹1,473.3 crore in Q1FY26, up from ₹1,143.7 crore in the same period last year. The rise in costs outpaced revenue growth, leading to a pre-tax loss of ₹55.6 crore.

Key expense drivers included:

• Purchase of stock-in-trade: ₹877.5 crore (down from ₹1,012.3 crore YoY)
• Increase in stock-in-trade: ₹475.9 crore (compared to a decrease of ₹183.0 crore YoY)
• Employee benefit expenses: ₹45.2 crore (down significantly from ₹104.1 crore YoY)
• Other expenditure: ₹48.1 crore (down from ₹160.1 crore YoY)

The substantial increase in inventory levels (stock-in-trade) appears to be a primary factor contributing to the higher total expenditure and the resulting loss, despite lower purchase costs and employee benefits compared to the prior year.

What the Numbers Show

The divergence between revenue growth and profitability is driven by working capital dynamics rather than operational inefficiencies in core costs. While revenue grew 23.5% YoY, employee benefits and other expenditures fell significantly. However, the ₹475.9 crore increase in stock-in-trade in Q1FY26, compared to a decrease of ₹183.0 crore in Q1FY25, indicates a heavy build-up of inventory. This inventory accumulation, treated as an expense in the cost of goods sold calculation, directly impacted the bottom line, turning a profitable quarter into a loss-making one despite lower direct purchase and operational costs.

Auditor Review and Compliance

The unaudited financial results were reviewed by N Kumar Chhabra and Co., Chartered Accountants, who expressed no material misstatements. The Board of Directors approved the results on August 12, 2026, in compliance with SEBI LODR regulations. The company operates as a single segment entity engaged in pharmaceutical formulation trading.