Aarey Drugs & Pharmaceuticals Limited has announced its unaudited financial results for the third quarter ended December 31, 2025, showing a mixed performance with revenue declining year-on-year while maintaining profitability. The Board of Directors approved these results at their meeting held on February 11, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 reflects challenging market conditions with reduced revenue but sustained profitability:

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025, also showed declining trends across key financial metrics:

Cost Structure and Operational Metrics

The company's cost management during Q3FY26 showed several notable changes. Cost of materials consumed decreased to ₹9,930.48 lakhs from ₹13,146.17 lakhs in the previous year quarter. Employee benefit expenses remained relatively stable at ₹14.57 lakhs compared to ₹18.02 lakhs in Q3FY25. Finance costs increased marginally to ₹91.91 lakhs from ₹90.05 lakhs year-on-year.

Capital Structure and Asset Investments

The company maintained its paid-up equity share capital at ₹2,845.43 lakhs with 28,454,303 shares of face value ₹10 each. A significant development during the reporting period was the purchase of certain fixed assets that are not yet ready for intended use. The company has not charged depreciation on these assets, which will commence once they are fully installed and commissioned in accordance with IND AS 16.

Regulatory Compliance and Audit

The financial results were prepared in accordance with Indian Accounting Standards and reviewed by independent auditors Motilal & Associates LLP. The Audit Committee reviewed the results before Board approval. The company operates in a single segment of manufacturing and trading of drugs and pharmaceuticals, with no separate reportable segments as defined by IND AS 108.

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:

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.