Parmax Pharma Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, revealing continued operational challenges with widening losses and declining revenue performance.

Q3 FY26 Financial Performance

The pharmaceutical company reported deteriorating financial metrics for the third quarter of FY26. The company's operational revenue and profitability showed significant decline compared to the corresponding quarter of the previous year.

The company's basic earnings per share deteriorated to -1.96 for Q3 FY26 compared to -1.05 in the corresponding quarter of the previous year.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, showed even more concerning trends with substantial losses accumulating over the period.

Expense Structure and Cost Management

The company's expense breakdown for Q3 FY26 revealed significant cost components affecting profitability:

• Cost of materials consumed: Rs 312.77 lakh
• Employee benefits expense: Rs 78.42 lakh
• Other expenses: Rs 63.95 lakh
• Finance costs: Rs 27.53 lakh
• Depreciation and amortisation: Rs 26.67 lakh

Notably, the company reported a positive change in inventories of Rs 2.85 lakh, indicating inventory reduction during the quarter.

Corporate Governance and Operational Notes

The Board of Directors, led by Managing Director Umang Alkesh Gosalia, approved these results during their meeting held on February 14, 2026. The meeting commenced at 16:30 PM IST and concluded at 17:50 PM IST. The results have been reviewed by the Audit Committee and audited by statutory auditors, who issued an unqualified audit report.

The company operates exclusively in the pharmaceutical segment and has lodged an insurance claim with the insurance company, where the surveyor provided an insurance provision amounting to Rs 3.50 crore. Additionally, during the nine months ended December 31, 2025, the company did not charge depreciation on the clean room plant and effluent treatment plant.

Share Capital Structure

Parmax Pharma Limited maintains a paid-up equity share capital of Rs 3,74,13,000, consisting of shares with a face value of Rs 10.00 each. The share capital structure remained unchanged throughout the reporting periods, providing stability in the company's capital base despite operational challenges.

Parmax Pharma Limited, a pharmaceutical company specializing in bulk drugs, drug intermediates, and specialty chemicals, has reported substantial financial losses for the half-year ended September 30, 2025. The company's board recently approved the unaudited standalone financial results, revealing a challenging period for the organization.

Key Financial Highlights

Revenue Growth Overshadowed by Increased Expenses

Despite a notable increase in revenue from operations, rising by 21.25% to Rs 447.32 crore compared to Rs 368.92 crore in the previous year, Parmax Pharma's financial performance was significantly impacted by a disproportionate rise in expenses. The total expenses surged by 28.01% to Rs 732.97 crore, outpacing the revenue growth and resulting in a substantial net loss.

Widening Losses

The company reported a net loss of Rs 284.29 crore for the half-year, marking a 40.69% increase from the loss of Rs 202.07 crore in the corresponding period of the previous year. This widening loss has led to a negative basic earnings per share (EPS) of Rs 7.60, compared to Rs 5.40 in the previous year.

Operational Challenges

The unaudited financial results indicate ongoing operational challenges for Parmax Pharma. The significant increase in expenses, particularly in areas such as cost of materials consumed and finance costs, suggests potential issues with operational efficiency and financial management.

Auditor's Notes

In the limited review report, the auditors highlighted two key points:

1. The company is awaiting a surveyor's report for a fire incident that occurred in December 2023. A claim of Rs 3.50 crore has not yet been submitted to the insurance company due to the pending report.

2. The company has not provided depreciation on clean room plant and effluent treatment plant, considering the non-usage of these assets.

These notes suggest potential areas of concern regarding asset management and insurance claims that may impact future financial statements.

Looking Ahead

As Parmax Pharma grapples with these financial challenges, stakeholders will be keenly watching for any strategic initiatives or operational changes the company might implement to address the widening losses and improve its overall financial health in the coming quarters.