Medico Remedies total income rises 38%, profit slips 8%

Medico Remedies Limited reported total income of Rs 75.28 crore for the quarter ended September 30, 2026, 38% above Rs 54.36 crore a year earlier, while profit after tax fell 8% to Rs 2.35 crore from Rs 2.57 crore as expenses increased faster than income.

How did Medico Remedies perform in the September 2026 quarter?

Medico Remedies increased revenue from operations to Rs 73.97 crore in the quarter ended September 30, 2026, from Rs 52.64 crore in the quarter ended September 30, 2025. Other income declined to Rs 1.31 crore from Rs 1.72 crore, so the increase in total income to Rs 75.28 crore was driven by revenue from operations rather than non-operating income.

Medico Remedies reported profit before tax of Rs 3.27 crore, compared with Rs 3.47 crore a year earlier. Tax expense decreased to Rs 89.16 lakh from Rs 90.59 lakh, but this did not prevent profit after tax from declining to Rs 2.35 crore from Rs 2.57 crore. Total comprehensive income was Rs 2.38 crore, compared with Rs 2.57 crore, after a Rs 3.70 lakh other comprehensive loss in the September 2026 quarter.

The half-year figures show a similar difference between sales growth and earnings growth. Total income for the half year ended September 30, 2026 was Rs 145.85 crore, compared with Rs 93.27 crore a year earlier, while profit after tax was Rs 4.84 crore against Rs 4.39 crore. The September-quarter figures are stated by the company to be balancing figures between the June 2026 quarter and the reviewed six-month results.

Why did Medico Remedies' profit decline despite higher income?

Medico Remedies' profit declined because total expenses rose to Rs 72.01 crore in the September 2026 quarter from Rs 50.89 crore a year earlier, an increase of about 42% versus a 38% rise in total income. Consequently, the difference between total income and total expenses narrowed to Rs 3.27 crore from Rs 3.47 crore, matching the movement in reported profit before tax.

Raw-material consumption was the largest expense line at Rs 65.82 crore, up from Rs 43.35 crore in the prior-year quarter. The company also reported purchases of traded goods of Rs 60.30 lakh, compared with Rs 11.79 lakh, while the change in inventories of finished goods, work-in-progress and traded goods was negative Rs 5.39 crore, compared with negative Rs 4.02 crore a year earlier.

Employee-benefit expense rose to Rs 1.94 crore from Rs 1.81 crore, finance costs increased to Rs 44.88 lakh from Rs 23.51 lakh, and depreciation and amortisation expense rose to Rs 75.29 lakh from Rs 73.36 lakh. Other expenses increased to Rs 7.83 crore from Rs 7.66 crore. The filing does not give a product-level explanation for these movements because management reviews Medico Remedies as a single operating segment.

On a sequential basis, total income was Rs 75.28 crore in the September quarter versus Rs 70.57 crore in the June 2026 quarter, while profit after tax declined to Rs 2.35 crore from Rs 2.49 crore. Total expenses increased to Rs 72.01 crore from Rs 67.23 crore over those two quarters, and profit before tax declined from Rs 3.34 crore to Rs 3.27 crore.

Did Medico Remedies' India and overseas sales change sequentially?

Medico Remedies' sales of products within India rose sequentially to Rs 38.46 crore in the quarter ended September 30, 2026 from Rs 26.34 crore in the quarter ended June 30, 2026. Sales of products outside India declined to Rs 35.33 crore from Rs 42.70 crore, moving the disclosed sales mix toward India in the September quarter.

The geographical sales subtotal was Rs 73.79 crore in September 2026, compared with Rs 69.03 crore in June 2026. That subtotal was below revenue from operations of Rs 73.97 crore in September and Rs 69.40 crore in June. The disclosure identifies sales within and outside India but does not specify countries, customers or product categories.

The shift occurred within a pharmaceutical formulation manufacturing business that the company reports as one operating segment under Indian Accounting Standard 108. As a result, the September 2026 filing provides no separate profitability, asset or expense data for domestic and overseas product sales, despite the Rs 12.12 crore sequential increase in India sales and Rs 7.37 crore reduction in overseas sales.

What do Medico Remedies' balance sheet and cash flows show?

Medico Remedies reported total assets of Rs 202.04 crore at September 30, 2026, compared with Rs 153.40 crore at March 31, 2026. Current assets increased to Rs 176.76 crore from Rs 128.92 crore, led by trade receivables of Rs 120.20 crore versus Rs 81.99 crore, inventories of Rs 34.17 crore versus Rs 30.02 crore, and other current assets of Rs 16.64 crore versus Rs 12.87 crore.

Total equity increased to Rs 80.32 crore at September 30 from Rs 75.47 crore at March 31, while equity share capital remained Rs 16.60 crore. Current borrowings rose to Rs 27.71 crore from Rs 18.55 crore, and non-current borrowings increased to Rs 4.59 crore from Rs 28.63 lakh. Trade payables to creditors other than micro and small enterprises rose to Rs 74.62 crore from Rs 47.11 crore.

Medico Remedies generated net operating cash flow of Rs 4.33 crore in the half year ended September 30, 2026, compared with Rs 58.30 lakh in the corresponding prior-year period. Cash generated from operations was Rs 5.83 crore after a Rs 38.42 crore increase in trade receivables, a Rs 4.16 crore inventory increase and a Rs 33.31 crore increase in trade payables. Income tax paid was Rs 1.50 crore.

Investing cash outflow was Rs 2.38 crore in the six months, including Rs 2.30 crore spent on fixed assets, capital work-in-progress and capital advances. Net cash flow from financing activities was an outflow of Rs 28.50 lakh, mainly reflecting lease-liability payments, and cash and cash equivalents ended September 30, 2026 at Rs 3.57 crore, compared with Rs 1.91 crore at March 31, 2026.

Conclusion

Medico Remedies delivered substantially higher September-quarter income and revenue, but the increase did not translate into higher quarterly profit. Total income rose Rs 20.92 crore year on year to Rs 75.28 crore, while total expenses increased Rs 21.12 crore to Rs 72.01 crore. Higher raw-material consumption, traded-goods purchases, employee costs, finance costs and other expenses were reflected in the decline in profit after tax to Rs 2.35 crore.

The next disclosed formal process is the cost audit for financial year 2026-27. Medico Remedies' board approved the appointment of M/s. V. J. Talati & Co., Cost Accountants, as cost auditor on November 9, 2026, to issue the cost audit report under the Companies Act, 2013. The filing sets no operating target, leaving the movement in receivables of Rs 120.20 crore, borrowings and the domestic-overseas sales mix as reported matters to track in later disclosures.