SMS Pharmaceuticals Limited has announced its financial results for the third quarter ended December 31, 2025, following the board meeting held on February 7, 2026. The pharmaceutical company reported robust performance with significant growth in profitability and revenue generation during the quarter.

Financial Performance Overview

The company delivered strong financial results for Q3FY26, demonstrating consistent growth across key performance metrics. The standalone financial results show substantial improvement in both quarterly and nine-month performance compared to the previous year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, SMS Pharmaceuticals demonstrated exceptional growth trajectory with revenue from operations reaching ₹648.92 crores compared to ₹534.55 crores in the corresponding period of the previous year, representing a growth of 21.40%. The net profit after tax for the nine-month period stood at ₹66.69 crores, marking a significant increase of 39.64% from ₹47.76 crores in the previous year.

Strategic Investment Decision

The board of directors approved a significant strategic investment of up to ₹7 crores in its subsidiary, SMS Peptides Private Limited, through subscription of equity share capital. This investment will be executed in one or more tranches and represents the company's commitment to expanding its peptide manufacturing capabilities.

Consolidated Results Performance

The consolidated financial results, which include subsidiaries and associate companies, showed similar positive trends. The consolidated net profit after tax for Q3FY26 reached ₹23.47 crores compared to ₹18.24 crores in the previous year, while the nine-month consolidated net profit stood at ₹69.28 crores against ₹48.82 crores in the corresponding period.

Regulatory Compliance and Fund Utilization

The company maintained its commitment to regulatory compliance by filing comprehensive financial statements under Regulation 33 of SEBI Listing Regulations. SMS Pharmaceuticals also provided detailed disclosure regarding the utilization of funds raised through preferential allotment, with ₹80.93 crores utilized out of the total ₹114.30 crores raised for capital expenditure, working capital, and general corporate purposes.

SMS Pharmaceuticals has announced a significant corporate restructuring move, increasing its ownership stake in SMS Peptides to 99.99% through a new share issuance. This strategic transaction strengthens the pharmaceutical company's control over its subsidiary operations.

Ownership Structure Enhancement

The share issuance has resulted in SMS Pharmaceuticals achieving near-complete ownership of SMS Peptides, with the stake now standing at 99.99%. This move represents a substantial consolidation of the company's peptides business under direct control.

Strategic Implications

The increased ownership structure provides SMS Pharmaceuticals with enhanced operational control and streamlined decision-making capabilities within its peptides division. This consolidation aligns with corporate governance practices aimed at optimizing subsidiary management and operational efficiency.

The transaction reflects the company's focus on strengthening its position in the peptides segment through direct ownership and control mechanisms. The near-complete ownership structure enables more integrated business operations and strategic planning across the group entities.