IOL Chemicals & Pharmaceuticals Limited has initiated the process to strike off its wholly owned subsidiary IOL Life Sciences Limited from the register of companies. The company filed the application with the Registrar of Companies on January 27, 2026, under Section 248 of the Companies Act, 2013, as disclosed in its regulatory filing to the stock exchanges.

Strike-off Application Details

The application for striking off IOL Life Sciences Limited has been submitted pursuant to Section 248 of the Companies Act, 2013, read with applicable rules. The strike-off process is subject to receipt of necessary approvals from the Ministry of Corporate Affairs, Registrar of Companies, and other statutory authorities as applicable.

Financial Position of Subsidiary

IOL Life Sciences Limited had minimal financial contribution to the parent company's operations. The subsidiary's financial position as on March 31, 2025, reflects its dormant status:

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular SEBI/HO/CFD/-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company has provided all required details in compliance with regulatory requirements.

Transaction Classification

The strike-off application does not involve any sale or disposal transaction, as clarified in the regulatory filing. Key aspects of the process include:

• No agreement for sale has been entered into
• No consideration is being received from the strike-off
• The transaction does not fall within related party transactions
• No buyers are involved in the process

The strike-off represents a corporate restructuring move to eliminate a dormant subsidiary that has not contributed to the company's operations or financial performance. IOL Chemicals and Pharmaceuticals Limited continues to focus on its core chemical and pharmaceutical operations while streamlining its corporate structure through this subsidiary elimination process.

IOL Chemicals & Pharmaceuticals Limited (IOLCP) has reported a robust performance in the second quarter of fiscal year 2026, with significant year-on-year growth in key financial metrics despite facing temporary challenges.

Financial Highlights

• Revenue from operations stood at INR 567.50 crores, reflecting a 7.9% year-on-year growth.
• EBITDA increased by 33.3% to INR 64.00 crores, with margins expanding by 212 basis points to 11.1%.
• Profit after tax (PAT) grew by 56.7% to INR 30.00 crores, with PAT margin improving to 5.2% from 3.6% in the previous year.
• Post-tax cash profit grew 31.1% year-on-year to INR 51.50 crores.

Performance Drivers

The company's growth was primarily driven by:

1. Volume recovery in non-Ibuprofen APIs
2. Stable product mix
3. Improved operating leverage
4. Cost efficiency measures

Segment-wise Performance

Within the pharmaceutical segment, Ibuprofen contributed 62% of the revenue, while other APIs accounted for 38%.

Operational Highlights

• The new paracetamol facility, which commenced operations in March 2025, reached 55% capacity utilization in Q2 FY26.
• The company expects to achieve 65% capacity utilization for paracetamol by the end of FY26.
• IOLCP successfully concluded a 6-day EU GMP inspection with only minor recommendations.

Challenges and Mitigation

The company faced temporary margin pressure due to elevated fuel costs resulting from Punjab floods, impacting profitability by approximately 1% or INR 7-8 crores. However, management expects this effect to normalize in the coming quarters.

Future Outlook

• IOLCP aims to achieve EBITDA margins of 13-14% in the near term.
• The company is targeting 10-15% annual revenue growth.
• Focus remains on shifting from domestic to regulated markets to improve profitability and ensure stable demand.
• Capex plan of INR 150-200 crores annually, with 60% allocated for growth initiatives.

Management Commentary

Mr. Rakesh Mahajan, Advisor at IOL Chemicals, stated, "The performance of the company reflects steady progress along with our strategic road map. We continue to move toward a more diversified and export-driven portfolio, supported by investments in differentiated APIs, expanded manufacturing capacities and strong regulatory engagement across key markets."

IOL Chemicals' Q2 FY26 results demonstrate the company's resilience and strategic focus on diversification and export-driven growth. Despite temporary challenges, the significant improvements in EBITDA and PAT highlight the effectiveness of the company's cost optimization efforts and product mix strategy. As IOLCP continues to expand its presence in regulated markets and ramp up new capacities, it appears well-positioned for sustainable growth in the coming quarters.