Natural Capsules Limited , a prominent player in the capsule manufacturing industry, has announced its financial results for the second quarter and first half of the fiscal year 2025-26, revealing a mixed performance across its standalone and consolidated operations.

Standalone Performance

On a standalone basis, Natural Capsules Limited demonstrated resilience in its core business. The company reported a revenue from operations of Rs. 4,458.02 lakhs for the quarter ended September 30, 2025, marking a slight increase from the previous quarter. The net profit for Q2 stood at Rs. 281.05 lakhs, showing an improvement over the preceding quarter.

For the six-month period, the company's standalone performance was noteworthy:

Consolidated Results and Subsidiary Performance

The consolidated financial picture, however, presented challenges:

The significant disparity between standalone profit and consolidated loss is primarily attributed to the performance of the company's subsidiary, Natural Biogenex Private Limited. The subsidiary, which commenced commercial operations on March 31, 2025, is yet to achieve its full revenue potential, contributing to higher consolidated losses.

Strategic Decision on Rights Issue

The Board of Directors of Natural Capsules Limited has decided not to subscribe to the rights issue of Natural Biogenex Private Limited. This decision was attributed to cash flow commitments from ongoing projects, indicating a strategic focus on managing financial resources effectively.

Segment Performance

The company's financial results also shed light on its segment-wise performance:

1. Capsules Segment:

   • Revenue for Q2 FY 2025-26: Rs. 4,458.02 lakhs
   • Segment Results (Profit before tax and interest): Rs. 514.96 lakhs

2. API Segment:

   • Revenue for Q2 FY 2025-26: Rs. 122.24 lakhs
   • Segment Results: Rs. 859.45 lakhs

The API segment, despite lower revenue, showed higher profitability compared to the capsules segment, indicating its potential as a growth driver for the company.

Financial Position

As of September 30, 2025, Natural Capsules Limited's consolidated balance sheet reflected:

• Total Assets: Rs. 41,995.52 lakhs
• Total Equity: Rs. 24,539.98 lakhs
• Total Liabilities: Rs. 17,855.50 lakhs

Outlook

While the standalone business remains profitable, the consolidated performance underscores the challenges faced by the subsidiary. The company's decision to abstain from the subsidiary's rights issue suggests a cautious approach to capital allocation, possibly focusing on strengthening its core operations and managing ongoing project commitments.

As Natural Biogenex Private Limited progresses towards achieving its full revenue potential, investors and stakeholders will likely keep a close watch on the consolidated performance in the coming quarters.

Natural Capsules Limited continues to navigate through a phase of strategic growth and operational consolidation, balancing the performance of its established capsules business with the evolving dynamics of its newer ventures in the pharmaceutical sector.

Natural Capsules Limited , a prominent player in the pharmaceutical industry, has made significant announcements regarding leadership changes and developments at its material subsidiary that reflect evolving corporate dynamics.

Rights Issue Cancellation by Material Subsidiary

In a significant development, Natural Biogenex Private Limited, the material subsidiary of Natural Capsules Limited, has decided not to proceed with its previously approved rights issue. The Board of Directors of Natural Biogenex Private Limited made this decision in their meeting held on January 03, 2026, citing non-subscription by the major shareholder as the primary reason.

The cancelled rights issue details were as follows:

This decision was communicated to the stock exchanges under Regulation 30(9) of SEBI (LODR) Regulations, 2015, with reference to the company's earlier intimation dated September 30, 2025, when the rights issue was initially approved.

Chief Operating Officer Retirement

Natural Capsules Limited has also disclosed the upcoming retirement of Mr. MVN Kutty, the company's Chief Operating Officer (COO). The retirement is due to superannuation and will be effective from the close of business hours on September 30, 2025.

Regulatory Compliance and Communication

Both announcements were made by Pranjal Deshmukh, the Company Secretary & Compliance Officer of Natural Capsules Limited, ensuring full compliance with regulatory requirements. The cancellation of the rights issue represents a notable shift from the subsidiary's earlier capital raising plans, potentially impacting the group's expansion and investment strategies.

The decision not to proceed with the rights issue due to lack of support from the major shareholder highlights the importance of stakeholder alignment in corporate financing decisions. This development may require Natural Biogenex Private Limited to explore alternative funding mechanisms for its growth initiatives.