Sudarshan Pharma Industries Ltd

Encumbrance details

• Company: Sudarshan Pharma Industries Limited.
• Encumbrance: pledge on promoter shares.
• Event: creation of pledge on equity shares by promoter-category individuals.
• Date: 21 August 2026.

Business overview

• Core business: manufacturing and sourcing of chemicals and pharmaceutical products.
• Diversified portfolio spans API, intermediates, and finished formulations.
• Exports to UK, Australia, Uzbekistan, Syria, Oman, Taiwan, and MENA regions.
• Hyderabad bulk drug unit secured GMP and ISO 9001:2015 certifications.
• Vertical integration underway to expand API/intermediate and finished formulation capabilities.
• New CFO appointed May 1, 2026; governance strengthened.

Operational highlights

• Hyderabad API/intermediates facility certified (GMP/ISO).
• Ratna Lifescience turnaround; profitable post-takeover.
• New export markets opened: Taiwan, Sri Lanka, Bangladesh, UAE, Qatar, Congo, Rwanda.
• Hyderabad unit development includes ~50 potential API starting materials.
• R&D collaboration with Amity University in nanotech, R&D, and patent work.

Financial performance

• FY26 revenue from operations ₹703.05 Cr; gross profit ₹83.68 Cr.
• FY26 EBITDA ₹60.02 Cr; margin 8.53%.
• FY26 PAT ₹23.41 Cr; margin 3.33%.
• Q Jun 2026 revenue ₹174.41 Cr; PAT ₹5.61 Cr.
• FY26 gross margin 11.90%; EPS ₹0.97.
• Balance sheet: total assets ₹641.75 Cr; cash ₹1.13 Cr.

Capital structure & liquidity

• Short-term borrowings ₹255.11 Cr; long-term borrowings ₹38.37 Cr.
• Share capital ₹24.07 Cr; reserves ₹132.25 Cr; total equity ₹156.32 Cr.
• Total assets ₹641.75 Cr; cash ₹1.13 Cr; liquidity appears modest.

Strategic priorities & outlook

• Export target: minimum ₹100 Cr in FY27; focus on regulated/semi-regulated markets.
• Strengthen API product range; expand finish formulations and registrations.
• Establish depots in regulated markets to improve stock and sale reach.
• Amity R&D collaboration to advance new technologies and patent filings.

Risks & governance

• Dependence on China for key APIs; mitigate via domestic API manufacturing.
• Board updates: new Independent Directors and CFO appointment; governance enhancements.

Encumbrance on promoter shares

• Disclosure concerns encumbrance on promoter shares of Sudarshan Pharma Industries Ltd.

Business overview

• API and API intermediates manufacturer targeted for acquisition near Visakhapatnam
• Site spans 14 acres, 40 km from Visakhapatnam Airport
• Facility excludes steroids, penicillins, beta-lactams, hormones, and cytotoxic products
• Infrastructure includes water, effluent treatment, hazardous waste management, and marine outfall
• GMP license and ISO 9001/14001/45001 certifications held
• WHO Geneva 2024; USFDA 2024; ANVISA 2025 approvals for the site

Key operational highlights

• Total capacity across blocks I, III, V, VI is 584 KL
• Blocks I, III, V, VI are in operation
• Operations run 24x7 and employ about 200 staff
• Solvent recovery system is installed
• Site approved by WHO Geneva 2024, USFDA 2024, ANVISA 2025

Financial performance

• No revenue, EBITDA, or PAT data disclosed in this filing
• No segment or region financial breakdown provided

Capital structure & liquidity

• No debt/equity or liquidity data disclosed
• No capital-raising actions mentioned

Strategic priorities & outlook

• Primary objective is the proposed acquisition of a USFDA manufacturing unit
• Aims to expand API/intermediates manufacturing footprint
• Regulatory approvals already in place may enable faster integration

Risks & mitigation

• Main risk is completion of the proposed acquisition
• Mitigated by already secured WHO/USFDA/ANVISA clearances

Governance & leadership

• Leadership details: Chairman and MD named; no governance changes noted

Target background and deal terms

• Target: Vizag, India-based pharmaceutical manufacturing company with four blocks and 576.10 KL capacity.
• Equity stake: 76% via 12,464,000 shares of Rs 10.
• Consideration: cash plus 4,000,000 promoter shares.
• Strategic rationale: backward integration to enable end-to-end manufacturing.
• Regulatory approvals: not applicable; subject to due diligence.
• Timeline: indicative completion by 10 October 2026.
• Turnover (FY2023-24 to 2025-26): ₹15,355–₹19,247 lakhs.
• Industry: pharma manufacturing with US FDA, WHO Geneva, Anvisa accreditations.
• Background: plant with four blocks; capacity 576.10 KL.
• Target name to be announced post due diligence and definitive agreements.

Target overview and deal terms

• Target: Sudarshan Maven Pharma Private Limited, a pharma manufacturing and trading company in India.
• Authorised capital Rs 25,00,000; paid-up capital Rs 1,00,000.
• Acquisition size: 3,000 equity shares, 30% of paid-up capital.
• Form of consideration: cash; price not disclosed.
• Regulatory approvals: not applicable.
• Timeline for completion: by 31 December 2026.
• Related party: not a related party transaction.
• Strategic rationale: makes Sudarshan Maven a wholly-owned subsidiary; aligns with existing business.
• Background: incorporated 27 August 2024; engages in pharma manufacture, formulation, processing and trading.
• Turnover: Revenue from operations NIL as of 31 March 2026.
• Presence: India.
• Post-acquisition status: Sudarshan Maven would become wholly-owned subsidiary.
• Cost of acquisition: not disclosed.

Financials – Standalone

• Standalone Q1 June 30, 2026 revenue from operations 16,566.03; net profit 604.18; EPS basic/diluted 0.25.
• Standalone Q1 June 30, 2026 total income 16,701.41.
• Standalone Q1 June 30, 2026 total expenses 15,887.66.
• Standalone PBT 813.75; total tax expense 209.57; net profit 604.18.

Financials – Consolidated

• Consolidated Q1 June 30, 2026 total income 17,563.81; revenue from operations 17,441.84; other income 121.97.
• Consolidated Q1 June 30, 2026 PBT 750.53; total tax 189.59; net profit 561.37.

Operational & Corporate Actions

• Palghar unit manufacturing discontinued in Q1 to rationalize fixed costs and minimize losses.
• New wholly-owned Sudarshan USA subsidiary incorporated June 5, 2026; subscribed to 1,00,00,000 shares.
• Warrants converted: 9,00,000 warrants converted into 90,00,000 equity shares; paid-up capital Rs 24,96,58,870.
• Equity capital increased; paid-up capital now Rs 24,96,58,870.
• FCCB framework: up to USD 20m; USD 10m allotted; proceeds received May 27 and June 4, 2026.
• Balance: potential dilutive FCCBs exist; anti-dilutive; no dilution effect for quarter.

Litigation & Compliance

• Dubai litigation: AED 40,30,934 (~Rs 9.19 crore); Rs 4.68 crore received by 30 Jun 2026; balance receivable.
• Independent auditor NGST & Associates issued an unmodified review; some subsidiaries not reviewed.

Business Model & Segment

• Single reportable segment: API and specialty chemicals; IND AS 108 segment reporting not applicable.