Below is a structured extraction and summary of the relevant and actionable financial information from the Panacea Biotec Limited results filing dated August 14, 2025, for the quarter ended June 30, 2025 (Q1 FY26):
1. Auditor’s Note
- Type of report: Independent Auditor’s Limited Review Report on Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2025.
- Conclusion:
- No qualifications, concerns, or issues noted.
- The auditors have expressed an unmodified conclusion on both standalone and consolidated results.
- The review was conducted under SRE 2410, which provides moderate assurance.
- Some subsidiaries’ interim results were reviewed by other auditors or management; no material impact reported.
- Actionable: None required; results can be relied upon as presented.
2. Financial Performance
Key Financial Figures (₹ in Lakh)
| Particulars | Standalone Q1 FY26 (Jun 30, 2025) | Standalone FY25 (Mar 31, 2025) | Standalone Q1 FY25 (Jun 30, 2024) | Consolidated Q1 FY26 (Jun 30, 2025) | Consolidated FY25 (Mar 31, 2025) | Consolidated Q1 FY25 (Jun 30, 2024) |
|---|---|---|---|---|---|---|
| Revenue from operations | 11,225 | 6,790 | 5,688 | 16,670 | 13,253 | 11,572 |
| Other income | 495 | 609 | 380 | 567 | 859 | 380 |
| Total income | 11,720 | 7,399 | 6,068 | 17,237 | 14,112 | 11,952 |
| Total expenses | 12,604 | 9,602 | 7,566 | 17,713 | 16,887 | 13,931 |
| Profit/(Loss) before tax & exceptional items | (884) | (2,203) | (1,498) | (476) | (2,775) | (1,979) |
| Exceptional items | - | - | - | 1,132 | 2,771 | 274 |
| Profit/(Loss) before tax | (884) | (2,203) | (1,498) | 656 | (4) | (1,705) |
| Tax expense (net) | (214) | (964) | (120) | 260 | 195 | (117) |
| Net Profit/(Loss) after tax | (670) | (1,239) | (1,378) | 396 | (199) | (1,588) |
| Total comprehensive income/(loss) | (668) | (1,229) | (1,378) | 394 | (63) | (1,585) |
| Earnings per share (₹), Basic & Diluted (annualised) | (1.09) | (2.02) | (2.25) | 0.66 | (0.31) | (2.59) |
| Equity Share Capital (₹1 face value) | 613 | 613 | 613 | 613 | 613 | 613 |
Notes on quarters:
- Q1 FY26 = April 1, 2025 – June 30, 2025
- Q1 FY25 = April 1, 2024 – June 30, 2024
- FY25 = April 1, 2024 – March 31, 2025
3. Detailed Notes / Management Commentary
-
Going Concern:
Despite losses before tax and exceptional items in standalone and consolidated results, management confirms preparation of financials on a going concern basis, supported by surplus funds from prior sales of pharmaceutical brands and new long-term vaccine orders. -
Exceptional Income (Consolidated): ₹1,132 Lakh in Q1 FY26, comprising:
- ₹858 Lakh revenue from settlement with Apotex Inc., USA (dispute settlement).
- ₹274 Lakh from deferred consideration related to sale of domestic pharmaceutical brands.
-
Deferred Consideration: Balance of ₹1,837 Lakh (down from ₹5,436 Lakh in Q1 FY25) to be recognized in future periods; shown as Contract Liability.
-
Tax Adjustments:
- Standalone FY25 includes deferred tax of ₹416 Lakh related to prior years.
- Consolidated FY25 includes deferred tax charge of ₹270 Lakh related to prior years.
-
Accounting Standards: Results prepared under Indian Accounting Standards (Ind AS), compliant with Companies Act, 2013.
-
Comparability: Previous periods reclassified/regrouped for comparability.
4. Segment Information (Consolidated)
| Segment | Q1 FY26 Revenue (₹ Lakh) | FY25 Revenue (₹ Lakh) | Q1 FY25 Revenue (₹ Lakh) | Q1 FY26 Profit/(Loss) Before Tax (₹ Lakh) | FY25 Profit/(Loss) Before Tax (₹ Lakh) | Q1 FY25 Profit/(Loss) Before Tax (₹ Lakh) | Capital Employed (₹ Lakh) Q1 FY26 | Capital Employed (₹ Lakh) FY25 |
|---|---|---|---|---|---|---|---|---|
| Vaccines | 11,225 | 30,984 | 5,687 | (425) | (1,652) | (1,327) | 56,185 | 54,032 |
| Formulations | 5,445 | 24,925 | 5,885 | 1,081 | 857 | (378) | 27,479 | 29,030 |
| Total | 16,670 | 55,909 | 11,572 | 656 | (795) | (1,705) | 83,664 | 83,062 |
- No inter-segment revenue reported.
- Vaccines segment shows improvement in revenue and reduction in losses compared to Q1 FY25.
- Formulations segment profitable in Q1 FY26, reversing prior year loss in Q1 FY25.
- Capital employed stable year-on-year.
5. Capex, Projects, and Corporate Activity
- No explicit capex or project expenditure details disclosed in this filing.
- Corporate activity:
- Settlement with Apotex Inc. generating exceptional income.
- Deferred consideration from prior brand sales continues to be recognized.
- No mention of impairments, write-downs, acquisitions, disposals, or restructuring in this filing.
6. Standalone vs Consolidated
- Both standalone and consolidated financial results are provided and reviewed.
- Consolidated results include wholly owned subsidiaries and controlled enterprises as per Ind AS 110.
- Consolidated results show better profitability in Q1 FY26 due to exceptional income and improved segment performance.
- Standalone results continue to report losses before and after tax.
Summary for Investment Analysis Team
| Aspect | Key Points |
|---|---|
| Auditor’s Opinion | Clean limited review reports on standalone and consolidated results; no qualifications. |
| Financial Performance | - Standalone: Loss after tax ₹(670) Lakh in Q1 FY26 vs ₹(1,378) Lakh in Q1 FY25 (improvement). <br> - Consolidated: Profit after tax ₹396 Lakh in Q1 FY26 vs loss ₹(1,588) Lakh in Q1 FY25, driven by exceptional income and segment turnaround. <br> - Revenue growth in both standalone and consolidated vs prior year quarter. |
| Exceptional Items | Consolidated exceptional income ₹1,132 Lakh in Q1 FY26 mainly from Apotex settlement and deferred consideration. |
| Segment Performance | Vaccines segment losses narrowed; formulations segment profitable in Q1 FY26. |
| Taxation | Deferred tax adjustments from prior years impact FY25 results; current quarter tax benefits noted. |
| Capital Employed | Stable capital employed at consolidated level (~₹83,664 Lakh). |
| Corporate Actions | No new capex/project details disclosed; settlement with Apotex is a key event. |
| Going Concern | Management confirms going concern basis supported by cash flows and order book. |
Recommendation:
- Monitor realization of deferred consideration and impact of exceptional income on future quarters.
- Watch for updates on capex and project execution, especially vaccine capacity expansion mentioned in management commentary.
- Continued focus on improving standalone profitability and segment performance is critical.
- No auditor concerns; results can be used confidently for further financial analysis.
If you require further drill-down on specific line items or subsidiary performance, please advise.