Godavari Drugs announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, along with key corporate decisions during its Board meeting held on February 11, 2026. The pharmaceutical company reported mixed performance with declining revenues but maintained profitability during the quarter.

Financial Performance Overview

The company's financial performance for Q3FY26 showed a revenue decline compared to the previous year, though profitability remained stable.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Godavari Drugs reported revenue from operations of ₹7264.50 lakhs compared to ₹8784.75 lakhs in the corresponding period of the previous year. Net profit for the nine-month period stood at ₹279.84 lakhs, down from ₹348.69 lakhs in the same period last year.

Working Capital Loan Approval

The Board of Directors approved availing a short-term working capital term loan from ICICI Bank Limited to support business operations and new order execution.

The Board has authorized the Directors to finalize terms and conditions and execute necessary documents with the bank for this facility.

Operational Highlights

During Q3FY26, the company reported cost of materials consumed at ₹1664.11 lakhs compared to ₹1958.82 lakhs in Q3FY25. The company benefited from a positive change in inventories of ₹175.95 lakhs, indicating improved inventory management. Employee benefits expense increased to ₹157.66 lakhs from ₹98.35 lakhs in the corresponding quarter last year.

Corporate Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors during their meeting held on February 11, 2026. The meeting commenced at 3:30 PM and concluded at 4:30 PM. The results have been prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. The company's paid-up equity share capital remains unchanged at ₹753.05 lakhs with a face value of ₹10 per share.

Godavari Drugs Limited board of directors has approved a significant preferential issue of securities during its meeting held on January 15, 2026. The pharmaceutical company announced plans to raise funds through the issuance of convertible warrants and equity shares, both priced at ₹89 per security.

Convertible Warrants Issue Details

The board approved the issuance of up to 23,60,065 convertible warrants exclusively to promoters on a preferential basis. The key parameters of this warrant issue are outlined below:

The convertible warrants will be converted into equal number of equity shares with a face value of ₹10.00 each within 18 months from the date of allotment. Failure to convert within this timeframe will result in forfeiture of the upfront amount paid along with the non-converted warrants.

Equity Shares Preferential Issue

Simultaneously, the board approved the preferential allotment of up to 25,96,935 equity shares to both promoters and non-promoters at the same issue price of ₹89.00 per share.

Shareholding Pattern Post-Allotment

Upon completion of both preferential issues and assuming full subscription and conversion of warrants, the company's shareholding structure will be restructured. Promoters will hold 51.52% of the post-issue capital, while public shareholders will maintain 48.48% stake in the company.

Regulatory Approvals and Timeline

Both preferential issues are subject to shareholder approval and receipt of applicable regulatory approvals. The company has scheduled an Extraordinary General Meeting (EGM) on Thursday, February 12, 2026, at 11:00 AM through Video Conference/OAVM to obtain shareholders' consent for these proposals.

The board has appointed Mrs. Vidya Harkut, Practicing Company Secretary, as the scrutinizer for evaluating the voting process during the EGM. The board meeting, which commenced at 2:45 PM, concluded at 3:50 PM on January 15, 2026, at the company's registered office.

Key Allottees Distribution

The convertible warrants will be distributed among nine promoter entities, with the largest allocations going to Mohit Jaju (4,00,065 warrants), Mukund Kakani (4,69,000 warrants), and Sushma Kakani (4,23,000 warrants). For equity shares, the non-promoter category includes diverse investors ranging from individual investors to investment funds and private limited companies, with allocations varying from 25,000 to 2,24,725 shares per allottee.