Zim Laboratories Limited, a prominent player in the pharmaceutical industry, has announced the reappointment of two key executives to its leadership team. The company's Board of Directors has approved the extension of Mr. Niraj Dhadiwal and Mr. Prakash Sapkal as Whole-Time Directors for an additional two-year term, commencing October 1, 2025.

Board Decision and Approval Process

The decision was made during a board meeting held on September 19, 2025, following recommendations from the Nomination and Remuneration Committee. Both reappointments are subject to shareholder approval, highlighting the company's commitment to corporate governance and transparency.

Mr. Niraj Dhadiwal: A Veteran in Business Development

Mr. Niraj Dhadiwal, who will continue as Director – Business Development, brings nearly three decades of experience with Zim Laboratories to his role. His reappointment underscores the company's recognition of his significant contributions:

• Educational Background: Pharmacy graduate with a diploma in business management
• Career Progression: Started as a production officer in 1991, rising through the ranks to his current directorial position
• Key Responsibilities: Oversees business development and marketing functions
• Notable Achievements: Played a crucial role in the company's export development, demonstrating strong business acumen and technical knowledge

Mr. Prakash Sapkal: Operations Expert

Mr. Prakash Sapkal, reappointed as a Whole-Time Director, has been an integral part of Zim Laboratories for 26 years. His continued leadership is expected to drive operational excellence:

• Educational Background: Pharmacy graduate with an MBA
• Career Journey: Began as an Assistant Chemist and progressed through various operational roles
• Key Positions Held: Production Supervisor, Production Manager, and Vice President – Operations
• Significant Contribution: Instrumental in building a team that has brought Zim Labs' vision to fruition

Corporate Governance and Compliance

Zim Laboratories has confirmed that both Mr. Dhadiwal and Mr. Sapkal are not debarred from holding directorial positions by any regulatory authority. Additionally, the company has disclosed that neither director is related to any other board members, ensuring independence in decision-making processes.

The reappointments of these seasoned professionals signal Zim Laboratories' commitment to maintaining stability in its leadership while leveraging their extensive experience and industry knowledge. As the company moves forward, the extended tenure of these directors is likely to play a crucial role in shaping its strategic direction and operational efficiency in the competitive pharmaceutical landscape.

Zim Laboratories Limited, a pharmaceutical company, has reported a consolidated net loss of Rs 187.49 lakhs for the quarter ended June 30, 2025, compared to a profit of Rs 89.83 lakhs in the same quarter last year. The company's financial performance and strategic decisions were disclosed in its recent regulatory filings.

Financial Performance

The company's revenue from operations declined to Rs 7,175.61 lakhs in Q1 FY26 from Rs 8,182.44 lakhs year-on-year, representing a decrease of 12.30%. The earnings per share (EPS) turned negative at Rs (0.38) compared to Rs 0.18 in the corresponding quarter of the previous year.

On a standalone basis, Zim Laboratories posted a net loss of Rs 169.19 lakhs versus a profit of Rs 75.90 lakhs in the previous year.

EBITDA and Profit Margins

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs 57 lakhs, down 36.70% from Rs 90 lakhs in Q1 FY25. The EBITDA margin decreased to 7.90% from 11.00% in the same period last year.

Business Mix and Revenue Contribution

The company's business mix for Q1 FY26 showed the following revenue contributions:

The Nutra revenue contribution dropped year-on-year, primarily due to a decrease in Nutra PFI business, particularly in the MENA region, attributed to geopolitical instability.

Strategic Decisions and Subsidiary Restructuring

The Board of Directors made several key decisions during their meeting:

1. Appointment of Internal Auditor: Protiviti India Member Private Limited has been appointed as the internal auditors for FY 2025-26.

2. Investment in Subsidiary: The company approved an investment of up to AED 4,50,000 in ZIM Scientific Office L.L.C., a step-down subsidiary, through its wholly-owned subsidiary ZIM Laboratories FZE. This move aims to expand business operations in the GCC region.

3. Closure of Subsidiary: The Board approved the closure of ZIM Laboratories Middle East DMCC, another step-down subsidiary, subject to regulatory approvals in the UAE.

R&D and Innovation

Zim Laboratories continues to focus on research and development, allocating Rs 79 million for R&D in Q1 FY26, which accounts for 11.00% of the total operating income. The company reported progress in New Innovative Product (NIP) development and filings, with 8 products developed and filed in the EU.

Outlook

While facing challenges in the current quarter, Zim Laboratories is taking strategic steps to restructure its operations and focus on innovation. The company's investments in R&D and its subsidiary in the GCC region indicate efforts to strengthen its market position and product pipeline for future growth.

Investors and stakeholders will be watching closely to see how these strategic moves impact the company's performance in the coming quarters.