Veeda Clinical Annual Report, Balance Sheet & Revenue

 Veeda Clinical Research Limited Consolidated Balance Sheet (Rs in Crores)

Veeda Clinical Research Limited Consolidated Profit & Loss Statement (Rs in Crores)

Veeda Clinical Research Limited Consolidated Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities

The company showed a significant improvement in operating cash generation during FY2025-26. Net cash flow from operating activities increased sharply from Rs 33.32 crore in FY2024-25 to Rs 238.72 crore in FY2025-26, indicating a much stronger ability to generate cash from its core clinical research operations. Although profit before tax was only Rs 7.33 crore, compared with a loss of Rs 65.55 crore in the previous year, non-cash expenses—particularly depreciation and amortization of Rs 156.94 crore and finance costs of Rs 62.03 crore—significantly increased operating cash generation. Working capital movements also contributed positively, with financial assets releasing Rs 19.21 crore, trade payables contributing Rs 17.86 crore, and provisions contributing Rs 10.14 crore. Overall, the improvement from Rs 33.32 crore to Rs 238.72 crore is a strong positive indicator, as the business generated substantial cash internally despite relatively modest accounting profits.

Cash Flow from Investing Activities

Cash flow from investing activities remained negative, although the outflow reduced considerably compared with the previous year. Net cash used in investing activities declined from Rs 149.31 crore in FY2024-25 to Rs 56.16 crore in FY2025-26. The major capital expenditure on PP&E, intangible assets and CWIP amounted to Rs 28.53 crore, indicating continued investment in the company 's operating infrastructure and capabilities. The company also invested Rs 54.00 crore in mutual funds, but received Rs 51.07 crore from the sale of mutual funds, resulting in a relatively limited net impact. Importantly, FY2025-26 did not have the exceptionally large Rs 222.98 crore contingent consideration payment for acquisition of a subsidiary that occurred in the previous year. Therefore, the lower investing cash outflow primarily reflects the absence of this large acquisition-related payment and indicates that the company was under less cash pressure from inorganic expansion during the year.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of Rs 105.94 crore in FY2025-26, compared with a net inflow of Rs 91.41 crore in FY2024-25. The major reason for the change was the absence of fresh long-term borrowing in FY2025-26, whereas the company had raised Rs 149.34 crore of long-term debt in the previous year. During FY2025-26, the company repaid Rs 52.22 crore of long-term borrowings, paid Rs 38.16 crore in finance costs, and made Rs 5.83 crore of lease-liability principal payments. This indicates a shift from debt-funded expansion toward deleveraging and servicing existing financial obligations. Although the resulting financing outflow reduced cash during the year, the lower dependence on new borrowing can be viewed positively from a financial-risk perspective, provided the company can sustain its strong operating cash flows.

Net Cash Position

The company’s cash and cash equivalents position improved significantly during FY2025-26. Cash and cash equivalents increased by Rs 76.63 crore, compared with a decrease of Rs 24.58 crore in FY2024-25, indicating a substantial improvement in overall liquidity. The company started FY2025-26 with cash and cash equivalents of Rs 70.25 crore and reported closing cash of Rs 169.36 crore, reflecting a much stronger year-end cash position. This improvement was mainly supported by the strong Rs 238.72 crore cash generated from operating activities, which more than offset the cash used in investing and financing activities. Overall, the movement suggests that the company generated significantly stronger internal cash flows and ended the year with a better liquidity position, providing greater flexibility to meet its operating requirements, debt obligations and future investments. However, the figures provided contain a reconciliation difference: Rs 70.25 crore opening cash plus Rs 76.63 crore increase equals Rs 146.88 crore, not Rs 169.36 crore. Therefore, the reported closing cash figure should be verified with the original financial statements.

Financial ratios of Veeda Clinical Research Limited

Summary of Financial Ratios for the year 2026 and 2025:

Current Ratio: The Current Ratio declined from 2.72 in 2025 to 2.30 in 2026, indicating a reduction in the company’s short-term liquidity position. However, the ratio remains above 2, suggesting that the company continues to have a comfortable ability to meet its current liabilities from its current assets.

Debt-Equity Ratio: The Debt-Equity Ratio improved marginally from 0.06 in 2025 to 0.05 in 2026. This indicates that the company has very low dependence on debt financing and maintains a strong equity-based capital structure, with relatively low financial risk.

Debt Service Coverage Ratio: The Debt Service Coverage Ratio decreased from 4.67 to 3.63. Although this represents a decline in the company’s capacity to service its debt obligations, the ratio remains above 1, indicating that the company has sufficient operating earnings to meet its debt servicing commitments.

Return on Equity Ratio: The Return on Equity Ratio improved from -0.01 in 2025 to 0.01 in 2026. The movement from a negative to a positive ratio indicates a modest improvement in the returns generated for shareholders and reflects a shift towards profitability.

Inventory Turnover Ratio: The Inventory Turnover Ratio increased from 3.97 to 4.31, indicating improved inventory management and a faster conversion of inventory into sales during 2026. This suggests more efficient utilisation of inventory compared with the previous year.

Trade Receivables Turnover Ratio: The ratio improved from 4.43 to 5.29, indicating that the company collected its trade receivables more efficiently in 2026. The higher turnover suggests faster conversion of credit sales into cash and improved receivables management.

Trade Payables Turnover Ratio: The Trade Payables Turnover Ratio increased slightly from 1.45 to 1.52, indicating a modest improvement in the rate at which the company settles its trade payables. This reflects a slight change in the company’s payment cycle and management of supplier obligations.

Net Capital Turnover Ratio: The Net Capital Turnover Ratio increased significantly from 1.42 to 2.22. This indicates that the company generated substantially higher revenue in relation to its net working capital and used its capital more efficiently during 2026.

Net Profit Ratio: The Net Profit Ratio improved considerably from -4% in 2025 to 3% in 2026. This indicates a significant turnaround in profitability, with the company moving from a net loss position to generating a positive net profit from its revenue.

Return on Capital Employed: The Return on Capital Employed improved from -1% to 3%, indicating better utilisation of the capital employed in the business. The positive ratio in 2026 suggests that the company has returned to generating profits from the capital invested in its operations.

Return on Investment: The Return on Investment declined from 0.93% in 2025 to 0.43% in 2026. Despite the decline, the ratio remains positive, indicating that the company continues to generate a return on its investments, although the return generated was lower compared with the previous year.