Aarey Drugs & Pharmaceuticals Announces Share Capital Increase and Preferential Issue Plans

Aarey Drugs & Pharmaceuticals Ltd has announced significant corporate actions and financial results, signaling potential growth and expansion plans for the company.

Board Approves Share Capital Increase

The Board of Directors of Aarey Drugs & Pharmaceuticals Ltd has approved an increase in the company's Authorised Share Capital from Rs. 255.00 crores to Rs. 355.00 crores. This 39.22% increase in share capital provides the company with additional flexibility for future fundraising and growth initiatives.

Preferential Issue of Equity Shares and Warrants

In a move to raise capital, the board has approved a preferential issue of 50 lakh equity shares at a face value of Rs. 10 each. The pricing for this issue will be determined on August 4, 2023. Additionally, the company plans to issue 50 lakh warrants convertible into equity shares on a preferential basis.

The preferential allotment includes both promoter and non-promoter categories, with detailed allocation lists provided for each category. This balanced approach aims to maintain a healthy ownership structure while bringing in fresh capital.

Upcoming Annual General Meeting

All proposals, including the share capital increase and preferential issues, are subject to shareholder approval at the 33rd Annual General Meeting (AGM) scheduled for September 5, 2023. The company has appointed CS Virendra Bhatt as the scrutinizer for the AGM voting process, ensuring transparency and compliance with regulatory requirements.

Financial Performance

Aarey Drugs & Pharmaceuticals Ltd has submitted its audited financial results for the year ended March 31, 2021. The company reported:

Revenue from operations: Rs. 348.42 crores
Profit for the year: Rs. 6.51 crores

Recent Financial Trends

Based on the latest available financial data:

Metric (in Rs. crore)	FY 2025 (Latest)	FY 2024	% Change
Revenue	473.94	402.60	17.72%
Net Profit	4.19	4.70	-10.85%
EPS (in Rs.)	1.43	1.84	-22.28%
EBITDA	2.25	11.40	-80.26%

The company has shown a significant increase in revenue, growing by 17.72% year-over-year. However, there has been a slight decline in net profit and earnings per share (EPS). The EBITDA has also seen a substantial decrease, which may be a point of concern for investors.

These corporate actions and financial results reflect Aarey Drugs & Pharmaceuticals Ltd's efforts to strengthen its capital structure and position itself for future growth. Shareholders will have the opportunity to vote on these proposals at the upcoming AGM, which will play a crucial role in shaping the company's future direction.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.90%	-10.10%	-20.57%	+49.72%	+26.39%	+81.85%

Aarey Drugs & Pharmaceuticals , a manufacturer and trader of drugs and pharmaceuticals, has released its unaudited financial results for the first quarter. The company's performance shows a mixed picture with a decrease in revenue but an increase in profit compared to the same period last year.

Financial Highlights

Particulars (in Rs. Lakhs)	Q1 FY26	Q1 FY25	YoY Change
Total Income	1,037.60	1,288.71	-19.48%
Total Expenses	1,020.32	1,271.56	-19.76%
Profit Before Tax	17.28	17.31	-0.17%
Profit After Tax	13.73	12.39	+10.81%
Basic EPS (in Rs.)	0.48	0.44	+9.09%

Revenue and Profitability

Aarey Drugs & Pharmaceuticals reported a total income of Rs. 1,037.60 lakhs, marking a 19.48% decrease from Rs. 1,288.71 lakhs in the corresponding quarter of the previous year. Despite the revenue decline, the company managed to improve its profitability.

The profit after tax stood at Rs. 13.73 lakhs, showing a 10.81% increase from Rs. 12.39 lakhs in the same quarter last year. This improvement in profitability came despite a marginal decrease in profit before tax, which was Rs. 17.28 lakhs compared to Rs. 17.31 lakhs in the previous year's quarter.

Earnings Per Share

The company's basic earnings per share (EPS) improved to Rs. 0.48, up from Rs. 0.44 in the year-ago period, reflecting a 9.09% increase.

Operational Overview

Aarey Drugs & Pharmaceuticals operates in a single segment of manufacturing and trading of drugs and pharmaceuticals. The company's ability to maintain profitability despite lower revenue suggests effective cost management during the quarter.

Management Certification

The financial results were reviewed by the company's auditors, Motilal & Associates LLP. Managing Director Mihir R. Ghatalia and Chief Financial Officer Mira M. Ghatalia have certified the accuracy and compliance of the financial statements with applicable accounting standards and regulations.

Board Approval

The Board of Directors of Aarey Drugs & Pharmaceuticals Limited approved these unaudited financial results at their meeting. The meeting, which started at 4:00 p.m., concluded at 5:15 p.m.

As the pharmaceutical sector continues to evolve, Aarey Drugs & Pharmaceuticals' performance in the coming quarters will be closely watched by investors and industry analysts alike.