Sotac Pharmaceuticals Limited (SOTAC)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Sotac Pharmaceuticals' revenue was ₹60.0 Cr (+27.7% year on year, +62.2% on the previous half-year), and net profit ₹3.0 Cr (-50.0% year on year); the operating margin was 16.7%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹60.0 | +27.7% | +62.2% |
| Operating profit | ₹10.0 | -42.5% | +150.0% |
| Net profit | ₹3.0 | -50.0% | +50.0% |
| EPS (₹) | 3.00 | -45.8% | +35.1% |
| Operating margin | 16.7% | — | — |
📢 Recent Corporate Announcements
Sotac Pharmaceuticals has issued a notice convening an Extraordinary General Meeting (EGM) on October 31, 2026. The company proposes to increase its authorised share capital from Rs 11.50 crore to Rs 15.00 crore by creating 35,00,000 new equity shares of Rs 10 each. The proposed headroom will enable the company to issue further equity shares to broaden its capital base. Remote e-voting is scheduled from October 28 to October 30, 2026.
- EGM scheduled for Saturday, October 31, 2026 at 11:00 AM via VC/OAVM
- Authorised share capital to increase from Rs 11.50 Cr (1.15 Cr shares) to Rs 15.00 Cr (1.50 Cr shares)
- Addition of 35,00,000 equity shares of Rs 10 each aggregating Rs 3.50 Cr
- Remote e-voting opens at 9:00 AM on October 28, 2026 and closes at 5:00 PM on October 30, 2026
Sotac Pharmaceuticals has announced board approval to increase its authorized share capital from ₹11.50 crore to ₹15.00 crore, subject to shareholder approval. The authorized equity base will expand from 1.15 crore to 1.50 crore shares of ₹10 face value each. The company will seek shareholder assent via an upcoming Extra-Ordinary General Meeting (EOGM) conducted through remote e-voting. This corporate action typically creates headroom for future capital raises or corporate actions against the company's current ₹93 crore market capitalization.
- Authorized share capital increased from ₹11,50,00,000 to ₹15,00,00,000
- Total authorized equity shares expanded from 1,15,00,000 to 1,50,00,000 shares of ₹10 each
- Clause V of the Memorandum of Association to be altered accordingly
- EOGM notice approved with remote e-voting to be facilitated via NSDL
Sotac Pharmaceuticals Limited has issued an intimation under Regulation 36(1)(b) of the SEBI Listing Regulations, dispatching a web-link to the FY 2025-26 Annual Report to shareholders without registered email addresses. The company's 11th Annual General Meeting is scheduled to be held virtually on September 30, 2026. Remote e-voting eligibility cut-off is September 23, 2026, with the voting window open from September 27 to September 29, 2026. This is a standard statutory compliance filing with no impact on business operations or financials.
- 11th AGM scheduled for Wednesday, September 30, 2026, at 11:00 AM IST via Video Conferencing
- Cut-off date for e-voting eligibility set for Wednesday, September 23, 2026
- Remote e-voting starts Sunday, September 27, 2026 (9:00 AM) and ends Tuesday, September 29, 2026 (5:00 PM)
- Filing made under SEBI Regulation 36(1)(b) providing FY26 Annual Report links to unregistered email holders
Sotac Pharmaceuticals has fixed September 23, 2026, as the record date for determining shareholder eligibility for a final dividend of Rs 0.20 per equity share (2.00% of face value of Rs 10) for FY 2025-26. The dividend is subject to approval at the 11th Annual General Meeting scheduled for September 30, 2026. If approved, the payout will be completed on or before October 30, 2026. At the current share price of Rs 90, the dividend yield translates to approximately 0.22%.
- Final dividend of Rs 0.20 per equity share of face value Rs 10 (2.00% of face value)
- Record date fixed as Wednesday, September 23, 2026
- 11th AGM scheduled for Wednesday, September 30, 2026
- Dividend payment date on or before Friday, October 30, 2026
Sotac Pharmaceuticals has issued the notice for its 11th Annual General Meeting scheduled for September 30, 2026. The company is proposing a final dividend of Rs 0.20 per equity share (2% of face value) on 1.105 crore shares, amounting to an outflow of ~Rs 0.22 crore. Additionally, approval is sought for material related-party transactions of up to Rs 85 crore with subsidiary Sotac Healthcare Private Limited for FY27, which equals ~43% of its TTM revenue of Rs 197 crore. Re-appointment of Managing Director Sharadkumar Dashrathbhai Patel is also up for shareholder approval.
- 11th AGM scheduled on September 30, 2026 via Video Conferencing
- Final dividend proposed at Rs 0.20 per equity share (2% of face value) on 1,10,50,000 shares
- Material related-party transaction limit of up to Rs 85 crore sought with subsidiary Sotac Healthcare Pvt Ltd for FY26-27
- Cut-off date for e-voting entitlement fixed as September 23, 2026
- Re-appointment of Managing Director Sharadkumar Dashrathbhai Patel (holding 14,31,500 shares) proposed
Sotac Pharmaceuticals has announced the convening of its 11th Annual General Meeting on September 30, 2026. The Board has fixed September 23, 2026 as the record date for determining shareholder entitlement to a dividend of ₹0.20 per equity share (2% of ₹10 face value) for FY26. Additionally, the company appointed M/s. Suthar Haresh & Associates as its Cost Auditor for FY 2026-27.
- Fixed Record Date as September 23, 2026 for dividend of ₹0.20 per equity share (2% of face value).
- 11th Annual General Meeting scheduled for September 30, 2026 via Video Conferencing.
- Appointed M/s. Suthar Haresh & Associates, Cost Accountants, as Cost Auditors for FY 2026-27.
- Dividend payment to eligible shareholders to be disbursed within 30 days of AGM declaration.
Sotac Pharmaceuticals has scheduled its 11th Annual General Meeting (AGM) for September 30, 2026, via video conferencing. The Board fixed September 23, 2026, as the record date for determining eligibility for a final dividend of ₹0.20 per equity share (2% of face value ₹10) for FY26, subject to shareholder approval. Additionally, the company appointed M/s. Suthar Haresh & Associates as Cost Auditors for FY 2026-27. The dividend yield is modest at ~0.22% relative to the current share price of ₹90.0.
- Fixed Record Date on September 23, 2026, for dividend entitlement
- Proposed dividend of ₹0.20 per equity share (2% of face value of ₹10)
- 11th AGM scheduled for Wednesday, September 30, 2026, at 11:00 AM IST
- Appointed M/s. Suthar Haresh & Associates as Cost Auditors for FY 2026-27
Financial Performance
Revenue Growth by Segment
The company operates four segments: Non-Beta-Lactam, Beta-Lactam (6 crore bottle capacity), Molecule R&D, and Nutraceuticals. Subsidiary revenue (Nutraceuticals/R&D) reached INR 12.96 Cr for H1 FY26, contributing significantly to the consolidated top line.
Geographic Revenue Split
Operations are primarily concentrated in Ahmedabad, Gujarat, with manufacturing facilities in Sanand GIDC-II. Specific regional % split is not disclosed in available documents.
Profitability Margins
Standalone Profit Before Tax (PBT) for H1 FY26 was INR 3.12 Cr compared to INR 2.84 Cr in H1 FY25, representing a 9.9% growth. Subsidiary net profit for H1 FY26 stood at INR 0.25 Cr.
EBITDA Margin
Not explicitly disclosed as a percentage; however, standalone PBT grew 9.9% YoY, indicating stable core profitability despite rising debt costs.
Capital Expenditure
Total consolidated assets stood at INR 123.27 Cr as of September 30, 2025. Significant investment is noted in Sotac Lifesciences for nutraceutical manufacturing and Sotac Research for molecule development.
Credit Rating & Borrowing
The Debt-Equity ratio increased by 64.09% YoY, rising from 0.23 in FY24 to 0.38 in FY25, driven by an increase in total debts from INR 11.16 Cr.
Operational Drivers
Raw Materials
Pharmaceutical APIs and excipients for Non-Beta-Lactam and Beta-Lactam formulations; specific chemical names not disclosed.
Key Suppliers
Kerry Ingredients India Private Limited (Manufacturing agreement partner for nutraceuticals).
Capacity Expansion
Beta-Lactam vertical has an installed capacity of 6 crore dry syrup bottles. The company utilizes a contract manufacturing and loan license model to maintain agility.
Raw Material Costs
Cost of materials consumed is a primary expense line item; standalone PBT growth of 9.9% suggests managed procurement despite a 64.09% increase in debt-equity which impacts overall cost structures.
Manufacturing Efficiency
The company serves 162+ corporate clients across its verticals, indicating high utilization of its loan license and contract manufacturing infrastructure.
Strategic Growth
Expected Growth Rate
10%
Growth Strategy
Growth is driven by the expansion into the nutraceuticals market via Sotac Lifesciences and enhancing the product pipeline through molecule R&D at Sotac Research. The company is also securing large-scale orders from major pharma players like Cadila Pharmaceuticals.
Products & Services
Non-Beta-Lactam medicines, Beta-Lactam dry syrups, nutraceutical supplements, food products, and pharmaceutical molecule R&D services.
Brand Portfolio
SOTAC, Sotac Healthcare, Sotac Lifesciences, Sotac Research.
New Products/Services
Nutraceutical and food products launched through Sotac Lifesciences; molecule research for new formulations through Sotac Research.
Market Expansion
Expansion into the nutraceuticals segment to address growing health supplement demand.
Strategic Alliances
Manufacturing agreement with Kerry Ingredients India Private Limited; contract manufacturing for 162+ corporate clients.
External Factors
Industry Trends
The industry is shifting toward specialized contract manufacturing and nutraceuticals. Sotac is positioning itself by diversifying into food-based supplements and R&D to capture higher-margin segments.
Competitive Landscape
Competes with other SME and mid-cap contract manufacturers in the Gujarat pharma hub.
Competitive Moat
Moat is built on a large client base (162+) and specialized capacity (6 crore dry syrup bottles). Sustainability depends on maintaining 'true and fair' audit standards and improving regulatory disclosure timelines.
Macro Economic Sensitivity
Sensitive to pharmaceutical regulatory changes in India and the growth of the domestic nutraceutical market.
Consumer Behavior
Increasing consumer demand for nutraceuticals and preventive healthcare products.
Regulatory & Governance
Industry Regulations
Subject to Companies Act 2013 and SEBI (LODR) Regulations. Secretarial audit noted non-compliance with Regulation 30 (delayed disclosure) and SEBI PIT Regulations (Structured Digital Database entries).
Legal Contingencies
Delayed disclosure of manufacturing agreement with Kerry Ingredients (July 2024) and improper maintenance of the Structured Digital Database for UPSI sharing entries.
Risk Analysis
Key Uncertainties
Regulatory risks due to secretarial audit findings; financial risk from the 64.09% increase in debt-equity ratio.
Geographic Concentration Risk
High concentration in Ahmedabad/Sanand, Gujarat, for all manufacturing operations.
Third Party Dependencies
High dependency on 162+ corporate clients for contract manufacturing revenue.
Technology Obsolescence Risk
R&D vertical (Sotac Research) is used to mitigate the risk of product obsolescence by developing new molecules.
Credit & Counterparty Risk
Trade payables and receivables are significant; consolidated current assets of INR 70.55 Cr indicate substantial working capital exposure.
