Haleos Labs, formerly SMS Lifesciences, reported an annual standalone profit of Rs 17.78 crore for FY26 and declared a Rs 1.50 dividend. Despite a decline in core revenue, the company saw a significant turnaround in its subsidiary, Mahi Drugs, which moved from a loss to a Rs 1.22 crore profit. Investors should watch the resolution of pending DRI litigation and the rollout of new products.
Haleos Labs Reports FY26 Results and Rebranding
Revenue from operations stood at Rs 300.99 crore; standalone profit after tax reached Rs 17.78 crore.
Reader Takeaway: Subsidiary Mahi Drugs turned profitable, but standalone revenue faced a 9.72% decline amid market headwinds.
What just happened
Haleos Labs Limited, formerly known as SMS Lifesciences India Limited, has finalized its corporate rebranding as of August 21, 2025. The company declared a final dividend of Rs 1.50 per share (15% of face value) for the 2025-26 fiscal year. Simultaneously, the company updated shareholders on its Unit-1 facility, which received a 'Voluntary Action Indicated' (VAI) status following a USFDA inspection in May 2025.
Why this matters
The transition reflects a period of realignment for the company. While standalone revenue dropped nearly 10% to Rs 300.99 crore due to specific client challenges and rising input costs, the turnaround of its 60%-owned subsidiary, Mahi Drugs, is a notable positive. Mahi Drugs swung from a loss of Rs 3.44 crore in the previous year to a profit of Rs 1.22 crore this year, showing improved operational efficiency within the group.
Risks to watch
Investors should closely track a pending DRI Kolkata show-cause notice involving Rs 10.03 crore in IGST. While the company has secured a stay on this matter via a writ petition in the Telangana High Court, the legal outcome remains a point of uncertainty. Additionally, the company is navigating supply chain volatility and the phase-out of certain legacy product lines, such as its Ranitidine business.
What to track next
Management is focusing on commercializing new ophthalmic products, specifically Dorzolamide HCL and Brinzolamide. The Annual General Meeting will also be key, as the company proposes a new five-year appointment for its statutory auditors, M/s. Suryanarayana & Suresh, and considers re-appointments for its Managing Director and Independent Directors.