Unichem Laboratories Limited cash equivalents fall Rs 132.47 crore

Unichem Laboratories Limited (Unichem) reported cash and cash equivalents of Rs 157.01 crore at 30 September 2026, down Rs 132.47 crore from 31 March 2026, while inventories rose Rs 108.49 crore and trade receivables increased Rs 157.25 crore during the six-month period.

Why did Unichem’s cash equivalents fall?

Unichem’s cash and cash equivalents declined from Rs 289.48 crore at 31 March 2026 to Rs 157.01 crore at 30 September 2026. The consolidated cash-flow statement reports a net decrease of Rs 130.94 crore in cash and cash equivalents for the six months ended 30 September 2026, followed by a Rs 1.53 crore fair-value loss on liquid mutual funds.

Other bank balances also fell to Rs 3.36 crore at 30 September 2026 from Rs 5.22 crore at 31 March 2026. Consequently, combined cash equivalents and other bank balances were Rs 160.37 crore at the half-year date, compared with Rs 294.70 crore at the preceding financial year-end.

The cash reduction came as the composition of current assets changed. Total current assets increased by Rs 164.84 crore to Rs 2,362.18 crore, but inventories and trade receivables together rose by Rs 265.74 crore, exceeding the decline in cash and bank balances of Rs 134.33 crore.

How much did Unichem’s working-capital balances change?

Unichem’s inventories increased by Rs 108.49 crore to Rs 1,083.46 crore between 31 March 2026 and 30 September 2026. Trade receivables increased by a larger Rs 157.25 crore to Rs 985.83 crore over the same period.

Unichem’s trade payables rose by Rs 97.09 crore to Rs 453.72 crore at 30 September 2026. This included Rs 20.93 crore owed to micro and small enterprises and Rs 432.79 crore owed to creditors other than micro and small enterprises.

Other current assets rose by Rs 17.87 crore to Rs 112.48 crore, while other financial assets increased by Rs 15.56 crore to Rs 19.98 crore. Current liabilities also increased to Rs 1,000.67 crore from Rs 885.94 crore, reflecting movements beyond trade payables during the six-month period.

Did Unichem’s first-half earnings improve despite lower cash?

Unichem’s revenue from operations increased by Rs 167.28 crore to Rs 1,272.84 crore in the half year ended 30 September 2026, from Rs 1,105.56 crore a year earlier. Total income rose by Rs 170.47 crore to Rs 1,303.82 crore over the same comparison.

Profit before exceptional items and tax increased to Rs 100.62 crore in the 2026 half year from Rs 38.42 crore in the corresponding 2025 period. Total expenses rose by Rs 108.27 crore to Rs 1,203.20 crore, while cost of materials consumed increased by Rs 34.59 crore and purchases of stock-in-trade increased by Rs 44.65 crore.

Reported profit after tax was Rs 63.69 crore for the six months ended 30 September 2026, compared with a loss of Rs 22.36 crore in the prior-year period. The latest half-year result included a Rs 24.26 crore exceptional provision for claims, whereas the prior-year half included Rs 58.26 crore of interest on the European Commission fine.

How did Unichem’s funding and asset base change?

Unichem’s total borrowings were Rs 474.56 crore at 30 September 2026, compared with Rs 468.78 crore at 31 March 2026. Current borrowings rose by Rs 12.55 crore to Rs 442.21 crore, while non-current borrowings declined by Rs 6.77 crore to Rs 32.35 crore.

Equity increased by Rs 63.99 crore to Rs 2,781.43 crore at 30 September 2026. Equity share capital was unchanged at Rs 14.08 crore, while other equity increased to Rs 2,767.35 crore from Rs 2,703.36 crore at 31 March 2026.

Total assets increased by Rs 170.11 crore to Rs 3,907.55 crore, matching total equity and liabilities at the half-year date. Capital work-in-progress rose by Rs 26.26 crore to Rs 126.40 crore, while property, plant and equipment declined by Rs 18.25 crore to Rs 1,117.65 crore.

What claim provision did Unichem recognise in the half year?

Unichem recognised a Rs 24.26 crore exceptional expense in the quarter and half year ended 30 September 2026 for a provision relating to claims. The provision was recorded by subsidiary Niche Generics Limited in connection with a claim filed by Laboratories Servier and linked to Perindopril proceedings in the United Kingdom.

Laboratories Servier has sought a contribution towards damages claimed by UK Health Authorities, according to the filing. Niche intends to resolve the matter at the earliest opportunity and by compromise if possible, while the Rs 24.26 crore provision represents £1.9 million in the consolidated results.

The 2026 provision followed a separate Rs 58.26 crore exceptional expense in the half year ended 30 September 2025 for interest on a European Commission fine. Unichem said it and Niche settled the fine and interest amounting to Euro 19.55 million on 28 October 2025, after adjusting Euro 2.79 million previously paid by Niche in instalments.

Conclusion

Unichem ended the first half of financial year 2026-27 with higher revenue, profit before exceptional items and total current assets, but with less cash immediately available. Inventories and trade receivables rose by a combined Rs 265.74 crore, while cash equivalents fell by Rs 132.47 crore and the increase in trade payables provided a Rs 97.09 crore partial offset.

The next disclosed matter to watch is Niche’s stated plan to resolve the Perindopril-related claim at the earliest opportunity, potentially through compromise. Unichem also said it continues to monitor developments in the New Labour Codes after recording a Rs 15.40 crore one-time employee-benefit provision in the year ended 31 March 2026.