SMS Pharma posts FY26 profit of ₹87.6 Cr, recommends 40% dividend

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AuthorVihaan Mehta|Published at:
SMS Pharma posts FY26 profit of ₹87.6 Cr, recommends 40% dividend
Overview

SMS Pharmaceuticals Ltd reported its fiscal year 2026 results, announcing a net profit of ₹87.61 crore on revenue of ₹886.87 crore. The company's board has recommended a final dividend of ₹0.40 per share (40%) and plans to shift its registered office.

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SMS Pharmaceuticals FY26 Financials

SMS Pharmaceuticals Ltd announced its audited financial results for the fiscal year ending March 31, 2026. The company reported revenue from operations totaling ₹886.87 crore. Consolidated net profit after tax reached ₹87.61 crore, while standalone net profit stood at ₹68.38 crore.

Dividend and Office Relocation

The Board of Directors has proposed a final dividend of ₹0.40 per equity share, representing 40% of the face value, for FY 2025-26. Shareholders will vote on this proposal at the upcoming Annual General Meeting (AGM). In addition, the company has approved the relocation of its registered office to Kondapur, Hyderabad, effective May 25, 2026, aiming for operational efficiency.

Auditor's Opinion and Key Metrics

Statutory auditors issued an 'Unmodified Opinion', indicating confidence in the company's financial reporting. Key financial metrics for FY 2025-26 include:

  • Revenue from Operations: ₹886.87 crore
  • Consolidated Net Profit after Tax: ₹87.61 crore
  • Standalone Net Profit after Tax: ₹68.38 crore
  • Recommended Dividend: ₹0.40 per equity share

Business Context

SMS Pharmaceuticals specializes in manufacturing Active Pharmaceutical Ingredients (APIs), intermediates, and finished dosage forms. The company's strategic focus includes expanding its product range and market presence.

Potential Risks

The company acknowledged the consolidation of labor code changes, which led to the recognition of a liability. Although deemed not material for standalone results, its future impact on operational costs will be monitored.

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