Evexia Lifecare FY25: Profit ₹0.93 Cr Amid Auditor Concerns and EV Pivot Plans

Evexia Lifecare Ltd has filed its annual report for the fiscal year ending March 31, 2025, revealing consolidated revenue of ₹110.48 crore and a net profit of ₹0.93 crore. The filing also details standalone figures showing ₹83.89 crore in revenue and ₹0.73 crore in net profit.

However, the auditor's report highlights significant concerns, including potential issues with internal financial controls, asset impairments, and overdue receivables, casting a shadow over the results.

Alongside these findings, Evexia Lifecare is signaling a major strategic shift, seeking shareholder approval to expand its business into the electric mobility sector. To support its future plans, including this diversification, the Board is requesting authorization for substantial borrowing and investment limits, proposing powers to borrow up to ₹1,000 crore and make investments or grant loans up to ₹2,000 crore.

The company is also proposing several key appointments and resolutions, including the re-appointment of Mr. Jayesh Raichandbhai Thakkar as Managing Director for a three-year term. M/s. Tejas K. Soni is proposed as the new Statutory Auditor for FY 2025-26, and M/s. BRAJESH GUPTA & CO as Secretarial Auditors for five years.

The auditor's report details specific risks, noting a lack of proper fixed asset registers and potential impairment in investments held in loss-making subsidiaries. Significant overdue trade receivables, lacking adequate provision, were also highlighted. Further concerns were raised about the accounting treatment of Foreign Currency Convertible Bonds (FCCBs), disclosures related to trade payables, and liquidity risk. Auditors also identified an inadequate system of internal financial controls over financial reporting. Notably, the consolidated financial statements exclude the results of three subsidiaries and one associate due to missing financial data.

Evexia Lifecare Ltd, formerly known as Sezal Investor Advisory Ltd, has historically operated in the pharmaceutical and healthcare sectors. The company has undergone corporate restructuring and explored various business avenues over the years, making the current move into electric mobility a significant strategic pivot to diversify its interests.

Operating within the pharmaceutical and healthcare industry, Evexia Lifecare faces competition from companies like Dishman Carbogen Amcis Ltd, which focuses on contract manufacturing and API production. Diversified players such as Aarti Industries Ltd also operate in chemical and pharmaceutical segments, though on a much larger scale. The competitive landscape for its planned electric mobility venture is still emerging, with direct peers not yet clearly defined.

Investors will be closely watching several key developments. These include the outcomes of shareholder votes on proposed appointments, the clarity and financial structure of the company's electric mobility expansion strategy, and management's action plan to address the critical observations made in the auditor's report. Continued monitoring of subsequent compliance with financial reporting and regulatory norms, as well as the utilization of the proposed borrowing and investment limits, will also be crucial.