Sangam Health Care Products Limited retains negative net worth

Sangam Health Care Products Limited reported total equity of negative Rs 19.19 crore at September 30, 2026, despite net profit of Rs 65.88 lakh for the half year ended that date. The unaudited balance sheet showed negative other equity of Rs 34.05 crore and total liabilities of Rs 23.35 crore.

Why is Sangam Health Care Products' net worth negative?

Sangam Health Care Products had negative net worth because accumulated losses within other equity exceeded its paid-up equity share capital at September 30, 2026. Equity share capital was Rs 14.86 crore, while other equity was negative Rs 34.05 crore, producing total equity of negative Rs 19.19 crore.

The position improved from March 31, 2026, when total equity was negative Rs 19.85 crore and other equity was negative Rs 34.71 crore. The Rs 65.87 lakh reduction in the other-equity deficit was broadly in line with the Rs 65.88 lakh net profit reported for the half year ended September 30, 2026, subject to rounding in the financial statements.

The September 30, 2026 balance sheet was marked unaudited, whereas the March 31, 2026 comparator was audited. The statutory auditors' limited review report dated November 13, 2026 said nothing had come to their attention suggesting a material misstatement, while also stating that a review provides less assurance than an audit.

How did Sangam Health Care Products return to first-half profit?

Sangam Health Care Products reported net profit of Rs 65.88 lakh for the half year ended September 30, 2026, compared with Rs 33.62 lakh for the corresponding half year ended September 30, 2025. Total income increased to Rs 6.16 crore from Rs 5.86 crore over the same two periods.

Profit before tax reached Rs 92.19 lakh in the September 2026 half year, up from Rs 38.90 lakh a year earlier. Current tax was Rs 23.97 lakh and deferred tax was Rs 2.35 lakh in the 2026 half year, resulting in the reported post-tax profit of Rs 65.88 lakh.

Total expenses were Rs 5.24 crore in the six months ended September 30, 2026, compared with Rs 5.47 crore in the prior-year half year. The filing reported material consumption and stock-in-trade purchases of Rs 3.22 crore, against Rs 1.44 crore a year earlier, while finance cost increased to Rs 90.61 lakh from Rs 81.65 lakh.

The September 2026 quarter produced net profit of Rs 30.63 lakh, compared with Rs 23.36 lakh in the corresponding quarter of 2025. That followed Rs 35.25 lakh in the June 2026 quarter, meaning the Rs 65.88 lakh first-half profit was spread across both reported 2026 quarters.

What assets and liabilities did Sangam Health Care Products report?

Sangam Health Care Products reported total liabilities of Rs 23.35 crore at September 30, 2026, down from Rs 23.56 crore at March 31, 2026. Total assets rose to Rs 11.94 crore from Rs 11.22 crore during the same six-month period, while total equity remained negative Rs 19.19 crore.

Trade receivables increased to Rs 4.04 crore at September 30, 2026 from Rs 3.52 crore at March 31, 2026. Inventories declined to Rs 88.28 lakh from Rs 1.01 crore, while other financial assets increased to Rs 1.08 crore from Rs 65.02 lakh.

Non-current assets stood at Rs 5.78 crore at September 30, 2026, compared with Rs 5.88 crore at March 31, 2026. Other non-current assets were Rs 5.20 crore, deferred tax assets were Rs 30.83 lakh, and property, plant and equipment were Rs 27.29 lakh at the September reporting date.

The filing's scanned current-liabilities presentation combines several labels and amounts, so it does not support a reliable breakdown of individual current borrowing and payable categories. The clearly reported aggregate liability figure was Rs 23.35 crore at September 30, 2026, compared with Rs 23.56 crore at March 31, 2026.

What does Sangam Health Care Products' cash flow show?

Sangam Health Care Products generated net cash from operating activities of Rs 21.81 lakh for the period ended September 30, 2026. This was below profit before tax of Rs 92.19 lakh because trade receivables rose by Rs 51.63 lakh and other assets rose by Rs 37.79 lakh, using cash through working-capital movements.

Inventory movement added Rs 13.09 lakh to operating cash flow, and increased trade payables added Rs 1.94 lakh. The cash-flow statement also showed a Rs 1.07 lakh increase in other liabilities and depreciation and amortisation of Rs 2.89 lakh for the September 2026 period.

Financing cash flow was negative Rs 21.30 lakh, including repayment of borrowings of Rs 21.25 lakh and interest paid of Rs 4,000. With no investing cash flow reported for the September 2026 period, cash and cash equivalents rose by Rs 51,000 to Rs 15.68 lakh from Rs 15.17 lakh at the beginning of the period.

Operating cash flow and net profit measure different items in the September 2026 statements. The Rs 51.63 lakh receivables increase and Rs 37.79 lakh increase in other assets show that part of the period's reported profit had not translated into operating cash by September 30, 2026.

Conclusion

Sangam Health Care Products' first-half profit of Rs 65.88 lakh reduced the reported other-equity deficit to Rs 34.05 crore at September 30, 2026 from Rs 34.71 crore at March 31, 2026. Yet total equity remained negative Rs 19.19 crore, alongside total liabilities of Rs 23.35 crore and total assets of Rs 11.94 crore.

The November 13, 2026 filing does not disclose a capital-raising plan, debt-restructuring programme, target for restoring positive net worth, or scheduled event addressing the deficit. The disclosed unresolved matter is therefore whether subsequent profits, receivables collection and borrowing repayments can continue to reduce the negative equity position reported at September 30, 2026.