Innovassynth Investments Ltd

Issue overview

• Type: rights issue of equity shares.
• Total size and net proceeds not disclosed.
• Proceeds utilised per Letter of Offer objects.

Utilisation of proceeds

• Utilisation aligned with stated objects; no deviations reported.
• Object-wise details not disclosed in excerpt.
• Unutilised funds status not disclosed.
• Audit Committee reviewed Monitoring Agency Report.

Governance and compliance

• Audit Committee's review completed; other approvals not noted.
• No material events disclosed in excerpt.

Business Overview

• Three business units: Life Sciences & Nucleosides, CRDMO, and Specialty Chemicals; exports ~90%.
• Exports-led model; ~90% revenue from USA and Europe.
• Khopoli facility with 9 plants and 250 KL total capacity.
• Life Sciences capacity expansion to double; CRDMO demand growth.
• Audits with no major observations; robust quality systems.

Operational Highlights

• Order book at Rs 165 crore as of 30 June 2026.
• Revenue and EBITDA improved sequentially and YoY despite logistics challenges.
• Diversified customer base across USA and Europe; strong project pipeline.
• Life Sciences capacity expansion on track; plans to double capacity.

Financial Performance

• Revenue from operations: 5,599 for quarter ended 30 June 2026.
• EBIDTA: 1,497; EBIDTA margin 27%.
• PAT: 674; PAT margin 12%.
• Tax expense: 442; Diluted EPS: 0.80.
• Q1 FY27 revenue rose sharply YoY to 5,599 from 1,227 in Q1 FY26.
• EBITDA margin improved to 27% in Q1 FY27.

Capital Structure & Liquidity

• Market cap ~ INR 1,261 crore; equity shares outstanding ~9.28 crore.
• Market price as of 30-Jun-2026: INR 129.26.

Strategic Priorities & Outlook

• Capacity expansion to double Life Sciences capacity; sustain CRDMO demand.
• Successful audits boost customer confidence; diversified US/Europe base reduces risk.
• Management expects sustained profitability growth with a strong project pipeline.

Risks & Mitigation

• Logistics-related challenges impacting revenue; mitigated by diversified customer base and execution.
• Quality and audits reduce regulatory risk; robust processes support compliance.

Financial Performance

• Revenue from operations: Rs 5,598.59 lakh; total income Rs 5,617.74 lakh.
• Total expenses: Rs 4,502.13 lakh.
• Materials consumed: Rs 1,517.21 lakh.
• Employee benefits: Rs 942.77 lakh.
• Finance costs: Rs 200.31 lakh.
• Depreciation: Rs 199.91 lakh.
• Changes in inventories: Rs 359.40 lakh.
• Profit before tax: Rs 1,115.61 lakh.
• Tax expense: Rs 442.07 lakh.
• Profit after tax: Rs 673.53 lakh.
• Other comprehensive income: Rs 15.14 lakh.
• Tax on remeasurement of defined benefit plans: Rs (5.84) lakh.
• Total comprehensive income: Rs 673.53 lakh.
• EPS (basic/diluted): Rs 0.80.
• Paid-up equity share capital: Rs 9,286.07 lakh.
• Restated Q1 Jun 2025: revenue Rs 1,227.21 lakh; PAT Rs -1,867.35 lakh; EPS -2.47.

Corporate actions & merger

• Merger: 4.7465 crore shares issued; share capital up Rs 13,949.97 lakh.
• NCLT approved merger Nov 14, 2025; effective Dec 19, 2025.
• Name changed to Innovassynth Technologies (India) Limited.
• Rights issue: 1.7411 crore shares at Rs 40; allotment completed May 19, 2026.
• Funds raised: Rs 6,964.55 lakh.
• BSE approval Apr 20, 2026.
• LOF submitted Apr 23, 2026.
• New Labour Codes impact: Rs 80.94 lakh in Employee Benefits (Mar 31, 2026).
• Comparatives for June 2025 restated due to merger.
• Auditors: limited review; not an audit.

Financial results and audit

• Unaudited standalone results for quarter ended 30 June 2026 approved with Limited Review Report.
• Audited results for quarter ended 30 June 2026 approved; Audit Committee reviewed; limited review by statutory auditors.
• Total income for the quarter was Rs 5,617.74 lakh; PAT Rs 673.53 lakh.
• Basic and diluted EPS for the quarter: Rs 0.80.
• Comparatives for June 2025 restated post-merger with ITIL.
• Standalone results only; no consolidated results prepared.

Capital raising and approvals

• Rights issue approved: 1,74,11,380 shares at Rs 40 each, totaling Rs 6,964.55 lakh.
• BSE in-principle approval received April 20, 2026; final Letter of Offer April 23, 2026.
• Rights entitlement: 3 rights for every 13 fully paid shares; allotment completed May 19, 2026.
• Rights issue increased equity; post-issue capital disclosed.
• Name change and corporate rebranding following merger.

Merger with ITIL

• NCLT approved merger by absorption of ITIL; effective December 19, 2025.
• Post-merger, equity issued; capital increased by Rs 13,949.97 lakh.
• Comparatives for June 2025 restated; revenue and PAT restated.
• Consolidation not applicable.

Regulatory/compliance

• New Labour Codes: Rs 80.94 lakh impact recognized in employee benefits expense.
• Rules to be accounted for as notified by government.
• Company renamed to Innovassynth Technologies (India) Limited.

Auditor and controls

• Auditors' report on restated results notes no material misstatement; limited review.

Dematerialisation status

• Securities in the certificate have been listed on the stock exchanges.
• Physical certificates were mutilated and cancelled; depository name substituted as registered owner.

Innovassynth Technologies (India) Limited — Closure of Trading Window from July 01, 2026 until expiry of 48 hours from the date of announcement/declaration of financial results for the quarter ended June 30, 2026

Business

• Innovassynth operates Life Sciences, Specialty Chemicals, and CRDMO businesses.
• Exports contribute about 90% of revenue, mainly from the USA and Europe.
• The company is expanding its Khopoli integrated manufacturing facility.

Operations

• Life sciences capacity expansion is underway, targeting a 2x increase.
• Two major CDMO customer audits were completed without major observations.
• Order book increased by about Rs 60 crore during the quarter.

Financials

• Q4FY26 revenue rose to Rs 5,083 crore from Rs 4,841 crore year ago.
• Q4FY26 EBITDA was Rs 628 crore, with 12% margin versus 21% last year.
• Q4FY26 PAT was Rs 1,196 crore, versus Rs 1,163 crore last year.
• FY26 revenue was Rs 10,235 crore, up from Rs 9,831 crore in FY25.
• FY26 EBITDA was negative Rs 2,441 crore, versus Rs 2,160 crore profit in FY25.
• FY26 PAT was negative Rs 2,878 crore, versus Rs 2,015 crore profit in FY25.

Balance Sheet

• Total assets increased to Rs 27,793 crore in FY26 from Rs 22,290 crore.
• Borrowings rose to Rs 10,227 crore in FY26 from Rs 4,566 crore.
• Cash and cash equivalents were Rs 34 crore at FY26 end.

Outlook

• Management expects customer demand to remain intact despite temporary shipment disruptions.
• Commercialisation of customer molecules could add future manufacturing volumes.
• Operational efficiency initiatives are expected to mitigate Middle East disruption impacts.

Governance

• The company changed its name from Innovassynth Investments Limited to Innovassynth Technologies (India) Limited.