Group Pharmaceuticals Latest Annual Report, Balance Sheet and Financials

Group Pharmaceuticals Limited Consolidated Balance Sheet (Rs in Crores)

Group Pharmaceuticals Limited Consolidated Profit & Loss Statement (Rs in Crores)

Group Pharmaceuticals Limited Consolidated Cash Flow Statement (Rs in Crores)

Summary of Cash Flow Statement for the years 2025 and 2026:

Cash Flow from Operating Activities

The company’s operating cash flow improved significantly from ₹9.55 crore in FY2025 to ₹17.07 crore in FY2026, indicating stronger cash generation from its core business operations. Profit before tax increased from ₹13.88 crore to ₹16.97 crore, while operating profit before working capital changes rose from ₹15.78 crore to ₹18.46 crore. Working capital movements also supported cash generation, particularly the ₹6.16 crore increase arising from other current liabilities and ₹0.82 crore increase in provisions. However, loans and advances and other current assets absorbed ₹2.09 crore. After payment of direct taxes of ₹4.43 crore, net operating cash flow stood at ₹17.07 crore, reflecting a healthy ability to generate internal cash.

Cash Flow from Investing Activities

Investing activities resulted in a substantial cash outflow of ₹28.50 crore in FY2026, compared with ₹9.53 crore in FY2025. The major reason was investment of ₹26.14 crore, more than double the ₹11.02 crore invested in the previous year. The company also spent ₹2.62 crore on fixed assets, indicating continued investment in its asset base, while sale of fixed assets generated ₹0.26 crore. The high investment outflow suggests that the company is deploying significant funds toward investments and asset creation; however, it also placed considerable pressure on overall liquidity during the year.

Cash Flow from Financing Activities

Financing activities generated a net cash inflow of ₹8.95 crore in FY2026, compared with a small outflow of ₹0.20 crore in FY2025. The principal source of financing was ₹10.15 crore raised through a rights issue, which provided additional equity funding. This was partly offset by repayment of cash credit borrowings of ₹0.80 crore and payment of ₹0.39 crore towards interest and finance costs. There were no significant proceeds or repayments of unsecured loans from directors and no dividend payments. Overall, the rights issue played an important role in financing the company’s investment requirements and supporting liquidity.

Net Cash Flow Position

Overall, the company generated ₹17.07 crore from operations, but this was insufficient to cover the ₹28.50 crore investing outflow. The financing inflow of ₹8.95 crore helped bridge most of the resulting cash deficit, leading to a net decrease in cash and cash equivalents of ₹2.47 crore, compared with a decline of only ₹0.18 crore in FY2025. Consequently, cash and cash equivalents fell from ₹13.53 crore at the beginning of FY2026 to ₹11.05 crore at year-end. The statement therefore indicates stronger operating cash generation but increased cash deployment in investments, with the rights issue providing important external funding; the lower closing cash balance suggests that liquidity should be monitored despite the improvement in operating cash flows.

Financial ratios of Group Pharmaceuticals Limited

Summary of Financial Ratios for the years 2025 and 2026:

Current Ratio

The Current Ratio decreased from 4.12 in FY2025 to 2.93 in FY2026, indicating a decline in the company’s short-term liquidity position. Although the ratio of 2.93 still suggests that the company has sufficient current assets to meet its current liabilities, the lower ratio indicates a reduced liquidity cushion compared with the previous year. The decline may reflect greater utilisation of current resources for investments and other operating requirements.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio improved significantly from 125.08 in FY2025 to 139.04 in FY2026. This indicates that the company’s ability to meet its debt servicing obligations strengthened during the year. The improvement suggests that the company had adequate earnings and cash-generating capacity relative to its debt-related commitments, reflecting a comfortable debt-servicing position.

Return on Equity

The Return on Equity declined from 16.57% to 15.33%, indicating a moderate reduction in the return generated on shareholders’ funds. Although the company continued to provide a healthy return to equity shareholders, the decline suggests that shareholders’ capital increased at a faster rate than the growth in profits. The rights issue during FY2026 may have contributed to the increase in equity base.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio improved from 6.03 in FY2025 to 6.49 in FY2026, indicating better efficiency in collecting outstanding amounts from customers. A higher turnover ratio generally reflects faster conversion of receivables into cash and better management of credit extended to customers. This improvement is positive for the company’s working capital and liquidity management.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio increased from 8.14 to 8.68, indicating that the company settled its trade payables at a faster rate during FY2026. The improvement reflects efficient management of payments to suppliers, although a higher turnover also means that cash is being used more quickly to settle obligations. Overall, the ratio indicates effective management of the company’s payable cycle.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio increased from 7.63 in FY2025 to 8.25 in FY2026, showing improved utilisation of net working capital in generating revenue. This means the company was able to generate higher sales for each unit of net capital employed. The improvement indicates greater operating efficiency and better utilisation of working capital resources during the year.

Net Profit Ratio

The Net Profit Ratio improved from 6.20% to 6.66%, indicating an improvement in the company’s profitability. The increase means that the company earned a higher amount of net profit from each rupee of revenue compared with the previous year. This is a positive indicator and suggests better cost control and overall profitability during FY2026.

Return on Capital Employed

The Return on Capital Employed declined from 20.18% in FY2025 to 18.62% in FY2026. Despite remaining at a strong level, the decline indicates that the company generated a somewhat lower return from the total capital employed. This may be due to the increase in capital employed, particularly following the rights issue and higher investment levels, which have not yet generated proportionate returns.