SMS Pharmaceuticals posts strong half-year profit jump, fund utilization on track

SMS Pharmaceuticals Limited's board of directors approved standalone and consolidated unaudited financial results for the quarter and half-year ended September 30, 2025. Consolidated net profit after tax reached INR 4,384.40 lakhs for the half-year, significantly up from INR 3,023.62 lakhs in the prior year. Revenue from operations for the half-year stood at INR 43,847.66 lakhs. The company also confirmed no deviation in the utilization of funds raised through a preferential issue for the quarter ended September 30, 2025.

The preferential issue, dated March 19, 2024, involved the allotment of 90,00,000 convertible warrants, with 25% of the issue price (INR 28,57,50,000) received upfront. The remaining 75% for 40,00,000 warrants (INR 38,10,00,000) was received on March 27, 2025, converting them to equity shares. The remaining 50,00,000 warrants were converted into equity shares on September 10, 2025, upon receipt of the balance 75% (INR 47,62,50,000).

Funds were primarily allocated for capital expenditure (INR 1714 lakhs out of INR 6287 lakhs allocated), working capital (INR 7334 lakhs utilized out of INR 4000 lakhs allocated), and general corporate purposes. An amount of INR 6,191 lakhs from the preferential issue was temporarily deployed in working capital to optimize fund utilization, in line with the objects of the issue. A dividend of INR 0.40 per equity share for the year ended March 31, 2025, aggregating INR 354.61 lakhs, was disbursed on September 30, 2025.