Smruthi Organics Limited , a key player in the bulk drugs and drug intermediates sector, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025, showcasing a significant turnaround in its performance.

Financial Highlights

The company reported a remarkable recovery in Q2 FY2026, with a net profit of Rs 205.62 crore, a substantial improvement from the previous quarter's loss of Rs 109.54 crore. This turnaround is particularly noteworthy given the challenging market conditions.

Key financial metrics for Q2 FY2026 are as follows:

Half-Year Performance

For the half-year ended September 30, 2025, Smruthi Organics achieved:

• Total revenue of Rs 5,058.73 crore
• Net profit of Rs 96.07 crore

Segment-wise Performance

The company operates primarily in two segments:

1. API (Active Pharmaceutical Ingredients): This segment remains the major contributor, generating revenue of Rs 5,045.74 crore for the half-year.

2. Formulations: This segment reported sales of Rs 21.48 crore but incurred a loss of Rs 16.72 crore during the period.

Management Commentary

E. Purushotham, Chairman & Managing Director of Smruthi Organics Limited, stated, "The Board of Directors approved these results at a meeting held on November 11, 2025, following a limited review by our statutory auditors. We are pleased with the strong recovery in our second quarter performance, which reflects our resilience and strategic initiatives in navigating market challenges."

Balance Sheet Highlights

As of September 30, 2025:

• Total assets stood at Rs 9,963.73 crore
• Total equity was reported at Rs 7,080.85 crore
• The company maintained a cash and cash equivalents position of Rs 112.12 crore

Future Outlook

While the company has shown a robust recovery in Q2, it continues to face challenges in its formulation division. The management may need to address this segment's performance to ensure overall sustainable growth.

Investors and stakeholders should note that these are unaudited financial results, and the final audited results may differ. The company's performance in the coming quarters will be crucial in determining its growth trajectory for the fiscal year 2025-26.

Smruthi Organics , a manufacturer of bulk drugs, drug intermediates, and formulations, has announced its unaudited financial results for the first quarter. The company's performance shows a decline in revenue and an increased net loss compared to the same quarter last year.

Financial Highlights

• Revenue Decline: The company's revenue from operations decreased to Rs 1,899.21 lakhs, down from Rs 2,727.27 lakhs in the corresponding quarter of the previous year, marking a significant year-over-year decline of 30.36%.

• Widening Losses: Smruthi Organics reported a net loss of Rs 109.54 lakhs for the quarter, compared to a net loss of Rs 92.30 lakhs in the same quarter of the previous year.

• Total Expenses: The company's total expenses stood at Rs 2,063.30 lakhs, exceeding the total revenue of Rs 1,907.97 lakhs.

• Loss Before Tax: The loss before tax increased to Rs 155.33 lakhs.

• Earnings Per Share: The basic and diluted earnings per share (EPS) for the quarter were negative Rs 0.96.

Segment Performance

The company's operations are primarily focused on the API (Active Pharmaceutical Ingredients) segment, with formulations as a minor segment:

Management Approval

The Board of Directors of Smruthi Organics approved these financial results at a meeting held on August 13. The meeting commenced at 10:30 am and concluded at 01:25 pm.

Auditor's Review

Gokhale & Sathe, Chartered Accountants, conducted a limited review of the unaudited financial results for the quarter. The auditors stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Conclusion

Smruthi Organics faces challenges as it navigates through a difficult quarter with decreased revenue and increased losses. The company's performance in the coming quarters will be crucial in determining its financial trajectory.