Mangalam Drugs & Organics Limited, a pharmaceutical company, has reported a default on its loan obligations to two major banks, totaling Rs 765.19 lacs. The company attributes this financial stress to reduced funding and decreased orders for specific treatments.

Loan Default Details

The defaults, which have exceeded 30 days, began in October 2025 for both banks. Mangalam Drugs & Organics has formally disclosed this information to comply with stock exchange regulations.

Reasons for Financial Stress

The company cites two primary factors contributing to its current financial difficulties:

1. Discontinuation of US Aid Funding: The US government has disbanded funding from US Aid, which was a significant source of support for Mangalam's business operations.

2. Reduced Treatment Orders: There has been a drop in orders for treatments related to TB, HIV, and Malaria. Currently, only the Global Fund is providing funding, but with a reduced budget.

Company's Response

Mangalam Drugs & Organics has taken the following steps to address the situation:

• Requested a loan restructuring with their banks
• Plans to submit a desired restructuring plan by mid-December 2025
• Making arrangements to pay the overdue amount

The company's Chief Financial Officer, Ajay Samant, has stated that they will keep stakeholders updated on the progress of discussions with the banks and the resolution of the default.

This development highlights the challenges faced by pharmaceutical companies that rely on international aid and funding for specific disease treatments. The situation underscores the importance of diversified funding sources and adaptable business models in the pharmaceutical industry.

Mangalam Drugs & Organics Limited has announced a change in the date of its upcoming Board of Directors meeting. The meeting, originally scheduled for November 13, 2025, has been postponed to November 20, 2025, due to unavoidable circumstances.

Key Points of the Rescheduled Meeting

The Board meeting agenda includes several important items:

1. Consideration and approval of un-audited financial results for the quarter ended September 30, 2025
2. Acknowledgment of the resignation of Mr. Ajay Avinash Samant, the company's Chief Financial Officer (CFO)
3. Other business items as per the agenda

Trading Window Closure

In line with regulatory requirements, Mangalam Drugs and Organics has implemented a trading window closure for share dealings. The details are as follows:

This temporary restriction on share dealings is a standard practice to prevent insider trading and ensure fair market practices during sensitive periods such as financial result announcements.

The postponement of the board meeting and the ongoing trading window closure highlight the company's commitment to regulatory compliance and transparent communication with its stakeholders. Investors and market participants are advised to take note of these changes and await the official announcement of the quarterly financial results.