RPG Life Sciences announced significant corporate restructuring initiatives following its board meeting held on December 15, 2025, including key leadership appointments and the successful establishment of a new subsidiary focused on its Active Pharmaceutical Ingredients (API) business operations. The company has now completed the subsidiary incorporation process and filed detailed disclosures under Regulation 30 of SEBI Listing Regulations with stock exchanges.

Leadership Appointment

The company's board has appointed Mr. Amol Lone as the new Chief Financial Officer and Key Managerial Personnel, effective from December 15, 2025. The appointment was made based on the recommendation of the Nomination and Remuneration Committee.

Mr. Lone brings extensive experience in corporate finance, business controlling, financial planning and analysis, IND AS, IFRS, US GAAP, direct and indirect taxation, transfer pricing, treasury, debt restructuring, and regulatory compliances including SEBI, RBI and FEMA. The company confirmed that Mr. Lone is not debarred from holding the office of director or key managerial personnel by virtue of any SEBI order or any other authority.

Subsidiary Incorporation Completed

The board has successfully completed the incorporation of RPG Active Pharma Limited, a wholly owned subsidiary dedicated to the company's API business operations. The subsidiary was officially incorporated on December 24, 2025, with the Ministry of Corporate Affairs issuing the Certificate of Incorporation.

API Business Transfer Details

RPG Life Sciences plans to transfer its existing API business operations to the newly formed subsidiary as a going concern. The API business contributed significantly to the company's operations during FY25.

Investment and Timeline

The company has committed to investing up to ₹105.00 crore in the new subsidiary across one or more tranches for capitalization, business operations, and other related requirements. The business transfer agreement is expected to be executed by February 28, 2026, with the transfer completion targeted by March 31, 2026, subject to statutory and regulatory approvals.

This strategic restructuring aims to create focused management of the API business and enhance operational and strategic flexibility for growth within this pharmaceutical segment. The transaction will be conducted at arm's length based on book value considerations.

RPG Life Sciences Limited has reported a strong performance in its domestic formulations business, significantly outpacing the broader Indian pharmaceutical market growth rate. The company's financial results for the first half of FY26 reveal a robust trajectory in its core business segments, while also announcing plans for strategic growth initiatives.

Domestic Formulations Lead Growth

RPG Life Sciences achieved a 13.5% growth in its domestic formulations business during H1 FY26, compared to the Indian pharmaceutical market's growth of 7.4% for the same period. This performance underscores the company's strong market position and effective strategy in its home market.

Financial Highlights

For the quarter ended September 30, 2025 (Q2 FY26), RPG Life Sciences reported:

Despite the year-on-year decline in profitability, the company has shown sequential improvement, with revenue growing by 7.6% compared to Q1 FY26.

Business Segment Performance

The company's performance across its three main business segments for H1 FY26 was as follows:

1. Domestic Formulations: Contributed 71% to total sales, growing by 13.5% to ₹246.10 crore.
2. International Formulations: Accounted for 19% of total sales, with a growth of 2.1% to ₹67.00 crore.
3. APIs (Active Pharmaceutical Ingredients): Represented 10% of total sales but saw a decline of 34.2% to ₹34.50 crore, primarily due to a fire incident at one of its manufacturing blocks.

Strategic Focus and Future Outlook

Mr. Ashok Nair, Managing Director of RPG Life Sciences Ltd., commented on the results: "In Q2, we have further strengthened our growth trajectory, driven by disciplined execution and a clear strategic focus. Our domestic formulations business is delivering market-beating performance with a growth of 13.5% in H1 FY26 versus Indian Pharma Market which recorded a growth of 7.4% in H1."

The company is pursuing a transformation agenda focused on enhancing patient outcomes and expanding its presence in both emerging and regulated markets. RPG Life Sciences is also making progress in its International Formulations and API business, supported by new customer acquisitions and the launch of molecules that enhance its therapeutic footprint.

Strategic Growth Initiatives

RPG Life Sciences is positioning itself for sustained growth through multiple strategic initiatives:

1. New Molecule Launches: The company plans to introduce new molecules to expand its product portfolio.
2. U.S. Market Entry: RPG Life Sciences is preparing to enter the U.S. pharmaceutical market, a significant step in its global expansion strategy.
3. API Capacity Expansion: The company intends to double its API capacity, strengthening its position in the global pharmaceutical supply chain.

Challenges and Opportunities

While the domestic formulations business has shown strong growth, the company faces challenges in its API segment due to the fire incident. However, RPG Life Sciences has received interim insurance payments and is confident of recovering the remaining losses in subsequent quarters.

The company's focus on building a future-ready pharmaceutical enterprise, embracing innovation, and delivering sustainable value to stakeholders positions it well for future growth. With its strong performance in the domestic market and strategic initiatives in international markets, RPG Life Sciences appears poised to capitalize on emerging opportunities in the pharmaceutical sector.