Unichem Laboratories posts Rs 22.22 crore quarterly profit

Unichem Laboratories Limited reported consolidated profit after tax of Rs 22.22 crore for the quarter ended 30 September 2026, reversing a Rs 11.89 crore loss a year earlier, despite a Rs 24.26 crore provision for a UK Perindopril-related claim. Unichem Laboratories' revenue from operations rose to Rs 640.22 crore from Rs 578.96 crore.

What drove Unichem Laboratories' return to quarterly profit?

Unichem Laboratories returned to profit because profit before exceptional items and tax increased to Rs 51.63 crore in the quarter ended 30 September 2026 from Rs 47.44 crore a year earlier. That earnings base absorbed the Rs 24.26 crore exceptional claims provision and a Rs 5.15 crore tax expense, resulting in reported profit after tax of Rs 22.22 crore.

Profit before tax was Rs 27.37 crore, compared with a pre-tax loss of Rs 10.82 crore in the quarter ended 30 September 2025. Basic earnings per share were Rs 3.16, compared with a loss per share of Rs 1.69 a year earlier, while diluted earnings per share were Rs 3.14 against a loss per share of Rs 1.69.

The September 2026 quarter also improved on the immediately preceding quarter in revenue and pre-exceptional profit. Revenue was Rs 640.22 crore versus Rs 632.62 crore in the quarter ended 30 June 2026, while profit before exceptional items and tax was Rs 51.63 crore versus Rs 48.99 crore; reported profit after tax was lower than the preceding quarter's Rs 41.47 crore because of the September claims provision.

How did Unichem Laboratories' revenue and costs change?

Unichem Laboratories' revenue from operations increased by Rs 61.26 crore year on year to Rs 640.22 crore in the September 2026 quarter. Total income, including other income of Rs 15.37 crore, was Rs 655.59 crore, compared with Rs 599.93 crore in the corresponding 2025 quarter and Rs 648.23 crore in the June 2026 quarter.

Total expenses rose to Rs 603.96 crore from Rs 552.49 crore a year earlier. Cost of materials consumed increased to Rs 255.11 crore from Rs 193.06 crore, purchase of stock-in-trade rose to Rs 68.17 crore from Rs 39.76 crore, and other expenses increased to Rs 189.70 crore from Rs 142.27 crore.

Inventory movements changed materially between the two periods. Unichem Laboratories recorded a Rs 52.79 crore reduction under changes in inventories of stock-in-trade, finished goods and work-in-progress in the September 2026 quarter, compared with a Rs 37.56 crore increase in the September 2025 quarter.

Employee-benefit expense was Rs 105.57 crore, compared with Rs 100.13 crore a year earlier and Rs 103.31 crore in the June 2026 quarter. Finance costs declined to Rs 7.71 crore from Rs 8.24 crore in the prior-year quarter but were above Rs 6.62 crore sequentially, while depreciation and amortisation fell to Rs 30.49 crore from Rs 31.47 crore.

What was Unichem Laboratories' UK claims provision for?

Unichem Laboratories booked a Rs 24.26 crore exceptional expense for a provision recognised by its subsidiary, Niche Generics Limited. Laboratories Servier filed a claim against Unichem Laboratories and Niche, among others, seeking contribution towards damages claimed by UK health authorities in relation to Perindopril proceedings in the United Kingdom.

The provision was £1.9 million, equivalent to Rs 24.26 crore, and was recognised as an expense in Niche's accounts and as an exceptional item in Unichem Laboratories' consolidated results for the quarter and half year ended 30 September 2026. Niche said it intends to resolve the matter at the earliest opportunity and, if possible, by compromise, citing the significant legal costs involved.

The September 2026 charge differs from the Rs 58.26 crore exceptional expense recorded in the September 2025 quarter. The earlier charge was interest on a European Commission fine, after Unichem Laboratories and Niche received a demand order dated 17 September 2025 for a fine and interest aggregating to €19.55 million, which the company said was fully settled on 28 October 2025 after adjusting €2.79 million of instalments paid by Niche.

How did Unichem Laboratories' first-half earnings change?

Unichem Laboratories reported profit after tax of Rs 63.69 crore for the half year ended 30 September 2026, reversing a Rs 22.36 crore loss in the corresponding 2025 half year. Half-year revenue from operations increased to Rs 1,272.84 crore from Rs 1,105.56 crore, while total income rose to Rs 1,303.82 crore from Rs 1,133.35 crore.

Profit before exceptional items and tax reached Rs 100.62 crore in the six months, compared with Rs 38.42 crore a year earlier. The half-year exceptional expense was Rs 24.26 crore, against Rs 58.26 crore in the prior-year period, producing profit before tax of Rs 76.36 crore versus a pre-tax loss of Rs 19.84 crore.

Tax expense was Rs 12.67 crore for the half year ended 30 September 2026, compared with Rs 2.52 crore a year earlier. The deferred-tax charge was Rs 10.19 crore, against Rs 0.14 crore in the prior-year half, and basic earnings per share were Rs 9.05 compared with a loss per share of Rs 3.18.

Total comprehensive income was Rs 63.83 crore for the 2026 half year, compared with a comprehensive loss of Rs 17.46 crore in the corresponding period. Other comprehensive income was Rs 0.14 crore, below Rs 4.90 crore a year earlier, reflecting a Rs 2.59 crore foreign-currency translation loss partly offset by a Rs 3.65 crore remeasurement gain on the defined-benefit plan.

How did Unichem Laboratories' financial position change by September 2026?

Unichem Laboratories' total assets stood at Rs 3,907.55 crore on 30 September 2026, compared with Rs 3,737.44 crore on 31 March 2026. Current assets rose to Rs 2,362.18 crore from Rs 2,197.34 crore, while non-current assets increased to Rs 1,542.15 crore from Rs 1,536.85 crore.

Inventories increased to Rs 1,083.46 crore from Rs 974.97 crore and trade receivables rose to Rs 985.83 crore from Rs 828.58 crore over the six months. Cash and cash equivalents declined to Rs 157.01 crore from Rs 289.48 crore, while capital work-in-progress increased to Rs 126.40 crore from Rs 100.14 crore.

Equity was Rs 2,781.43 crore at 30 September 2026, up from Rs 2,717.44 crore at 31 March 2026, including other equity of Rs 2,767.35 crore. Current borrowings rose to Rs 442.21 crore from Rs 429.66 crore, whereas non-current borrowings fell to Rs 32.35 crore from Rs 39.12 crore.

Current provisions increased to Rs 29.61 crore from Rs 4.70 crore during the six months, while non-current provisions declined to Rs 21.72 crore from Rs 28.64 crore. Total current liabilities were Rs 1,000.67 crore at 30 September 2026, compared with Rs 885.94 crore at the March 2026 year-end.

Conclusion

Unichem Laboratories moved from losses to profit in both the September 2026 quarter and first half as revenue and profit before exceptional items increased. The quarterly Rs 22.22 crore profit followed a Rs 11.89 crore loss a year earlier, even as the Rs 24.26 crore UK claims provision reduced pre-tax profit from Rs 51.63 crore before exceptional items to Rs 27.37 crore.

The disclosed next development is Niche's intention to resolve the UK Perindopril-related claim at the earliest opportunity, potentially by compromise. The filing does not provide a settlement timetable or final claim amount, while inventories of Rs 1,083.46 crore, trade receivables of Rs 985.83 crore and cash of Rs 157.01 crore are the balance-sheet measures disclosed for 30 September 2026.