Asston Pharmaceuticals September-half profit slips 3% on tax

Asston Pharmaceuticals Limited, referred to here as Asston Pharmaceuticals, reported net profit of Rs 3.2737 crore for the half year ended 30 September 2026, down 3.2% from Rs 3.3821 crore a year earlier. Revenue from operations declined to Rs 15.2658 crore, while tax expense rose to Rs 1.0996 crore from a Rs 0.0090 crore tax credit.

Why did Asston Pharmaceuticals' September-half profit decline?

Asston Pharmaceuticals' net profit declined because a Rs 1.0996 crore tax expense offset a Rs 1.0001 crore increase in profit before tax. Profit before tax reached Rs 4.3733 crore in the half year ended 30 September 2026, compared with Rs 3.3732 crore in the corresponding six months of 2025, but net profit fell by Rs 10.84 lakh to Rs 3.2737 crore.

The results statement shows no exceptional or extraordinary item in either September-half period, leaving profit before exceptional items and tax equal to profit before tax at Rs 4.3733 crore in 2026 and Rs 3.3732 crore in 2025. Current tax was Rs 1.0003 crore in the latest half, while deferred tax was Rs 9.93 lakh; the prior-year period recorded deferred-tax income of Rs 0.90 lakh and no current-tax charge disclosed in the statement.

How did Asston Pharmaceuticals' revenue and costs change?

Asston Pharmaceuticals' revenue from operations decreased by Rs 15.01 lakh year on year to Rs 15.2658 crore in the September 2026 half, while total income declined by Rs 8.98 lakh to Rs 16.8132 crore. Other income increased by Rs 6.02 lakh to Rs 1.5473 crore, which limited the decline in total income relative to the reduction in operating revenue.

Asston Pharmaceuticals' total expenses fell by Rs 109 lakh to Rs 1,243.98 lakh, compared with Rs 1,352.98 lakh in the prior-year half. Cost of materials consumed decreased by Rs 99.98 lakh to Rs 801.06 lakh and other expenses declined by Rs 112.19 lakh to Rs 243.96 lakh, while employee-benefit expense increased by Rs 79.38 lakh to Rs 140.52 lakh.

Finance cost was Rs 26.30 lakh for the half year ended 30 September 2026, compared with Rs 27.70 lakh a year earlier, while depreciation and amortisation rose to Rs 32.13 lakh from Rs 6.95 lakh. The company disclosed only one reportable segment, pharmaceuticals business, so the filing does not provide product, geography or business-line revenue details behind the Rs 15.2658 crore operating-revenue figure.

The preceding half year ended 31 March 2026 recorded revenue from operations of Rs 10.0529 crore, other income of Rs 4.6284 crore and profit before tax of Rs 1.2203 crore. Against that six-month period, September-half operating revenue increased by Rs 5.2129 crore and profit before tax increased by Rs 3.1530 crore, while other income decreased by Rs 3.0811 crore.

What changed in Asston Pharmaceuticals' capital and balance sheet?

Asston Pharmaceuticals allotted 24,10,431 equity shares on 5 September 2026 at an issue price of Rs 115 per share, including a premium of Rs 105 per share. The preferential allotment to 15 non-promoter public-category allottees aggregated Rs 27.7199565 crore and followed board approval on 2 July 2026 and shareholder approval at an extraordinary general meeting on 31 July 2026.

Paid-up equity share capital increased to Rs 10.9228 crore at 30 September 2026 from Rs 8.5124 crore at 31 March 2026, while reserves and surplus rose to Rs 58.9289 crore from Rs 30.3499 crore. Total shareholders' funds consequently increased to Rs 69.8517 crore from Rs 38.8622 crore, and the new shares rank pari passu with existing equity shares.

Asston Pharmaceuticals reported total assets of Rs 83.1453 crore at 30 September 2026, compared with Rs 51.6455 crore at 31 March 2026. Trade receivables rose to Rs 44.1326 crore from Rs 36.5680 crore, inventories increased to Rs 2.4168 crore from Rs 0.7668 crore, and cash and cash equivalents were Rs 9.6401 crore against Rs 1.9506 crore.

Current liabilities were Rs 9.9847 crore at 30 September 2026, compared with Rs 8.9892 crore six months earlier. Short-term borrowings increased to Rs 2.1449 crore from Rs 1.5550 crore, while long-term borrowings decreased to Rs 2.9816 crore from Rs 3.5526 crore.

Were Asston Pharmaceuticals' September-half results audited?

Asston Pharmaceuticals' financial results for the half year ended 30 September 2026 were unaudited and subject to a limited review by Panchal SK & Associates. The Audit Committee reviewed the results and the board approved them on 12 November 2026, according to the company’s notes to the financial statements.

Panchal SK & Associates stated in its report dated 12 November 2026 that nothing had come to its attention causing it to believe the statements lacked required disclosures or contained a material misstatement. The reviewer also stated that a limited review is based primarily on enquiries and analytical procedures and provides less assurance than an audit.

Asston Pharmaceuticals prepared the statements under the accounting standards applicable to it under the Companies Act, 2013 and the Securities and Exchange Board of India listing regulations. The company noted that entities listed on the SME Exchange are exempt from compulsory adoption of Indian Accounting Standards under the cited Ministry of Corporate Affairs notification.

Basic and diluted earnings per share were Rs 3.70 for the half year ended 30 September 2026, compared with Rs 9.35 in the year-earlier half. The company marked both per-share figures as not annualised, while the Rs 10 face value per equity share remained unchanged across the periods shown.

Conclusion

Asston Pharmaceuticals reported a modest decline in September-half net profit even as profit before tax rose by Rs 1.0001 crore. Lower materials and other expenses reduced total costs by Rs 1.0900 crore, but the change from a Rs 0.90 lakh deferred-tax credit to Rs 1.0996 crore of total tax expense resulted in net profit of Rs 3.2737 crore.

The next reported development to watch is the balance-sheet effect of the Rs 27.7199565 crore preferential allotment completed on 5 September 2026. The filing records higher equity, reserves, receivables and cash at 30 September 2026, but does not disclose a specific deployment plan for the proceeds, an operating target or a scheduled business milestone.