Shree Ganesh Remedies Ltd (540737)
📢 Recent Corporate Announcements
Shree Ganesh Remedies Limited has published its Annual Report for FY 2025-26 and convened its 31st Annual General Meeting for September 12, 2026 via video conference. For FY26, pharmaceutical intermediates contributed 63% and speciality & fine chemicals accounted for 37% of revenue. The company reported a lower debt-equity ratio of 0.19 (vs 0.26 in FY25) alongside a moderation in Return on Equity to 12% (vs 17% in FY25). Strategic initiatives highlighted include the operationalization of a new pilot facility and progress toward commissioning Block 7 at Ankleshwar.
- 31st AGM scheduled for September 12, 2026, with the e-voting cut-off date set for September 5, 2026
- Revenue mix for FY26 stood at 63% from Pharmaceutical Intermediates and 37% from Speciality and Fine Chemicals
- Debt-to-equity ratio improved by 29% to 0.19 as of March 31, 2026 (from 0.26 in FY25)
- Return on Equity dropped to 12% in FY26 compared to 17% in FY25 due to subdued profitability
- Company operationalized a new pilot facility with flow chemistry and is advancing Block 7 towards commissioning
Shree Ganesh Remedies reported a weak Q1FY27 with revenue falling 42% YoY to ₹14.36 Cr and PAT declining 68% YoY to ₹1.12 Cr. The downturn was primarily caused by subdued European demand and the termination of a marketing agreement with an EU distributor due to non-performance. Consequently, management has moderated its earlier guidance of 'non-linear growth' for FY27, now expecting a recovery only in the second half of the year. Despite the short-term setback, the company is continuing its Ankleshwar site expansion and Dahej land acquisition for future capacity.
- Revenue from operations fell 42% YoY to ₹14.36 Cr in Q1FY27 compared to ₹24.67 Cr in Q1FY26.
- EBITDA margins contracted significantly by 624 bps YoY to 23.3% from 29.6%.
- Net Profit (PAT) plummeted 68% YoY to ₹1.12 Cr from ₹3.45 Cr in the previous year's quarter.
- Management moderated FY27 guidance from 'non-linear growth' to a 'softer first half' with recovery expected in H2.
- Tangible assets increased to ₹68.08 Cr in FY26 from ₹57.91 Cr in FY25, reflecting ongoing capital expenditure.
Shree Ganesh Remedies Ltd (SGRL) reported a weak Q1FY27 with revenue declining 42% YoY to ₹14.36 Cr and PAT falling 68% YoY to ₹1.12 Cr. The performance was severely impacted by subdued demand in Europe and the termination of a non-performing distributor agreement, leading management to withdraw its earlier guidance of 'non-linear growth' for FY27. EBITDA margins contracted significantly to 23.3% from 29.6% YoY, reflecting lower operating leverage and raw material volatility. The company expects a recovery in H2FY27 driven by new CRAMS projects and direct customer engagement in Europe.
- Revenue for Q1FY27 fell 42% YoY to ₹14.36 Cr, representing only 13.2% of the TTM revenue of ₹109 Cr.
- Net Profit (PAT) declined 68% YoY to ₹1.12 Cr, with EPS dropping to ₹0.87 from ₹2.69 in the previous year's quarter.
- EBITDA margins compressed by 624 bps YoY and 1,092 bps QoQ to 23.3% due to lower volumes and contract repricing.
- Export revenue contributed ₹8.64 Cr (60% of total), but faced headwinds from deferred orders in European markets.
- Management moderated FY27 guidance from 'non-linear growth' to a 'softer first half' due to persistent geopolitical uncertainty.
Shree Ganesh Remedies (SGRL) reported a weak set of numbers for Q1 FY27, with standalone revenue falling 41.8% YoY to Rs 14.36 Cr. Net profit saw a sharper decline of 66.7% YoY to Rs 1.15 Cr, down from Rs 3.45 Cr in the year-ago period. The results reflect the company's previously stated 'year of consolidation' amid softer demand in Europe and contract repricing in its CRAMS business. The US subsidiary remains non-material with zero revenue for the quarter.
- Revenue from operations declined 41.8% YoY to Rs 14.36 Cr from Rs 24.67 Cr.
- Net profit after tax dropped 66.7% YoY to Rs 1.15 Cr from Rs 3.45 Cr.
- Earnings Per Share (EPS) fell to Rs 0.89 from Rs 2.69 in Q1 FY26.
- Finance costs decreased to Rs 0.32 Cr from Rs 0.94 Cr in the same quarter last year.
- Total expenses were reduced to Rs 13.77 Cr, primarily aided by a negative inventory change of Rs 6.31 Cr.
Shree Ganesh Remedies Ltd (SGRL) reported a weak set of results for Q1 FY27, with revenue from operations declining 41.8% YoY to ₹14.36 Cr. Net profit fell sharply by 67% YoY to ₹1.14 Cr, down from ₹3.45 Cr in the same quarter last year. Sequentially, the performance was even more subdued, with revenue dropping 56.7% from ₹33.20 Cr in Q4 FY26. This significant contraction reflects the 'softer demand' and 'contract repricing' challenges previously flagged by the management during their consolidation phase.
- Revenue from operations fell 41.8% YoY to ₹14.36 Cr from ₹24.67 Cr.
- Net Profit (PAT) declined 67% YoY to ₹1.14 Cr from ₹3.45 Cr.
- Earnings Per Share (EPS) dropped to ₹0.89 from ₹2.69 in Q1 FY26.
- Total expenses for the quarter stood at ₹13.77 Cr, representing 90% of total income.
- Finance costs decreased significantly to ₹0.32 Cr from ₹0.94 Cr YoY.
Shree Ganesh Remedies reported a weak set of numbers for Q1 FY27, with revenue from operations falling 41.8% YoY to Rs 14.36 crore. Net profit plummeted 67.2% YoY to Rs 1.13 crore, down from Rs 3.45 crore in the same period last year. Sequentially, the performance was even more subdued, with revenue dropping 56.7% from Rs 33.20 crore in Q4 FY26. This sharp contraction aligns with management's earlier guidance of FY26 being a 'year of consolidation' amid softer European demand and contract repricing.
- Revenue from operations fell 41.8% YoY to Rs 14.36 crore from Rs 24.67 crore.
- Net profit declined 67.2% YoY to Rs 1.13 crore compared to Rs 3.45 crore.
- Quarterly EPS dropped to Rs 0.88 from Rs 2.69 in the year-ago quarter.
- Finance costs decreased to Rs 0.32 crore from Rs 0.94 crore in Q1 FY26.
- Total expenses for the quarter were reduced to Rs 13.77 crore, down from Rs 20.73 crore YoY.
Shree Ganesh Remedies has scheduled a board meeting on August 12, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a fiscal year (FY26) where the company maintained a flat revenue of ₹109 Cr but saw a decline in PAT to ₹18 Cr from ₹23 Cr in FY25. Investors will be monitoring these results for signs of recovery following the company's self-designated 'year of consolidation' and updates on its specialty chemicals project for a Japanese client. The trading window for insiders has been closed since July 01, 2026.
- Board meeting scheduled for August 12, 2026, to approve Q1 FY27 results
- Trading window for dealing in shares closed from July 01, 2026
- Company reported a TTM revenue of ₹109 Cr and OPM of 32.0% as of March 2026
- Market capitalization stands at ₹838 Cr with a P/E ratio of 47.2
- Tangible assets grew 17.2% to ₹67.90 Cr in the six months leading to September 2025
Shree Ganesh Remedies has appointed Ms. Hiral Ankitkumar Shah as an Additional Director (Non-Executive Independent) effective July 17, 2026. Ms. Shah is a qualified Company Secretary with over 14 years of experience in corporate governance, legal, and regulatory compliance. The appointment is for a fixed term of five years, subject to shareholder approval. This move is aimed at strengthening the board's oversight on secretarial and legal matters.
- Appointment of Ms. Hiral Ankitkumar Shah as Additional Director effective July 17, 2026
- Fixed term of appointment set for 5 years subject to shareholder approval
- Appointee brings over 14 years of experience in corporate governance and legal affairs
- Ms. Shah currently serves as CS and Compliance Officer at Uma Converter Limited
Financial Performance
Revenue Growth by Segment
Revenue from operations for H1 FY26 was INR 54.98 Cr, a decline of 4% YoY compared to INR 57.11 Cr in H1 FY25. Q2 FY26 revenue stood at INR 30.32 Cr, representing a 23% sequential growth over Q1 FY26 but a 6% decline YoY from INR 32.33 Cr, primarily due to subdued domestic realizations and softer demand in European markets.
Geographic Revenue Split
While specific percentage splits are not disclosed, the company identifies Europe and Japan as key international markets. Revenue was adversely impacted by 'softer demand' in European markets and 'subdued realizations' in the domestic Indian market during H1 FY26.
Profitability Margins
PAT for H1 FY26 was INR 8.37 Cr, a 24% decrease from INR 11.05 Cr in H1 FY25. Net profit margin for Q2 FY26 was approximately 16.2%, showing a 43% sequential improvement in absolute PAT (INR 4.93 Cr) but remaining 23% lower YoY due to higher fixed costs and depreciation from recent capital investments.
EBITDA Margin
EBITDA margin for H1 FY26 was 30.8%, a contraction of 326 bps from 34.0% in H1 FY25. Q2 FY26 EBITDA margin was 31.7%, down 325 bps YoY but up 215 bps QoQ. The YoY decline is attributed to the repricing of contracts within the CRAMS business and increased operational expenses which rose 1% YoY to INR 38.07 Cr in H1 FY26.
Capital Expenditure
The company invested INR 35.66 Cr in investing activities during FY25. For H1 FY26, tangible assets increased to INR 67.90 Cr from INR 57.91 Cr in FY25, reflecting ongoing expansion at the Ankleshwar site. Capital Work-in-Progress (CWIP) stood at INR 8.78 Cr as of September 30, 2025.
Credit Rating & Borrowing
Long-term borrowings stood at INR 27.73 Cr as of H1 FY26. Finance costs surged by 162% YoY in H1 FY26 to INR 1.95 Cr (from INR 0.74 Cr) due to the servicing of debt taken for recent capacity expansions. The Debt-to-Equity ratio remains lean at 0.25x as of FY25.
Operational Drivers
Raw Materials
Key raw materials include chemicals for Pharmaceutical Drug Intermediates and Fine Chemicals. Cost of materials consumed was INR 37.38 Cr in FY25, representing 34.4% of total revenue, a significant decrease from INR 61.05 Cr (48.5% of revenue) in FY24, indicating a shift toward higher-margin complex chemistry.
Import Sources
Not specifically disclosed, though the company operates in global markets including Europe and Japan, suggesting international sourcing or compliance with global standards.
Capacity Expansion
The company is expanding its Ankleshwar site. Tangible assets grew 17.2% in six months to INR 67.90 Cr by September 2025. A new specialty chemicals project for a Japanese client is underway with final project approvals expected by mid-2026.
Raw Material Costs
Raw material costs as a percentage of revenue improved significantly to 34.4% in FY25 from 48.5% in FY24. This 14.1% reduction in material intensity highlights a strategic move toward complex molecules that require less volume but offer higher value-add.
Manufacturing Efficiency
The company maintains high EBITDA margins (30.8% in H1 FY26) despite market softness, driven by 'solid execution across client projects' and a shift toward niche customized chemical solutions.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
The company has designated FY26 as a 'year of consolidation.' Growth will be achieved post-FY26 through the expansion of the Ankleshwar site, a shift toward complex and niche specialty chemicals, and the commercialization of the specialty chemicals project for a Japanese client (expected mid-2026).
Products & Services
Pharmaceutical Drug Intermediates for API, Fine Chemicals, and Niche Specialty Chemicals.
Brand Portfolio
Shree Ganesh Remedies Limited (SGRL).
New Products/Services
Specialty chemicals project for a Japanese client; progress is positive with final approvals expected by mid-2026.
Market Expansion
Actively evaluating new opportunities in European and Japanese markets to leverage expertise in advanced chemical synthesis.
Strategic Alliances
Collaborating with industry leaders in Japan and Europe for specialty chemical projects.
External Factors
Industry Trends
The industry is shifting toward CRAMS and complex chemistry. SGRL is positioning itself by moving away from commodity intermediates toward niche specialty chemicals to capture higher margins, despite current industry-wide margin moderation to the 24-26% range.
Competitive Landscape
The company faces competition in the CRAMS and API intermediate space, evidenced by the need to reprice contracts to remain competitive.
Competitive Moat
Moat is built on 'Excellence in Complex Chemistry' and 'Advanced Chemical Synthesis.' This technical expertise in complex chemical reactions acts as a barrier to entry, though it requires continuous R&D and capital investment to sustain.
Macro Economic Sensitivity
Highly sensitive to European economic demand and domestic chemical pricing realizations. A 6% YoY revenue decline in Q2 FY26 was directly attributed to these macro factors.
Consumer Behavior
Shift toward sustainable manufacturing is driving the company's investment in a 1 MW solar park to meet client ESG requirements.
Geopolitical Risks
Trade barriers or economic slowdowns in Europe pose a risk, as the company noted 'softer demand' in that region impacting H1 FY26 performance.
Regulatory & Governance
Industry Regulations
Operations are subject to pollution norms and manufacturing standards for API intermediates. The company holds various accreditations for health, safety, and environmental standards.
Environmental Compliance
Investing in a 1 MW solar power park for renewable energy and implementing sustainable practices to protect the environment.
Taxation Policy Impact
The company's tax jurisdiction is India. Significant judgments are involved in determining provisions for income taxes and deferred tax assets.
Legal Contingencies
The company is involved in legal proceedings, but management concludes these are not probable of payment or material. No specific case values in INR were disclosed as being 'material' to the financial position.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline for the recovery of European demand and the stabilization of domestic realizations, which could impact revenue by 5-10% if softness persists.
Geographic Concentration Risk
Significant exposure to the European market and the domestic Indian market.
Third Party Dependencies
Dependency on a Japanese client for a major specialty chemicals project expected to scale in 2026.
Technology Obsolescence Risk
Risk is mitigated by 'Unmatched Technology Prowess' in complex reactions and continuous R&D infrastructure upgrades.
Credit & Counterparty Risk
Trade receivables stood at INR 24.57 Cr as of September 2025. The company monitors the recoverability of these assets, which represent approximately 45% of H1 revenue.
