Sigachi Industries slips into losses in Q1 FY26, posts net loss of Rs 100 crore

Mumbai, July 25 (IANS) Sigachi Industries posted a net loss of Rs 100.97 crore in the first quarter of the current financial year (Q1 FY26), the company said in an exchange filing on Friday.

The company had posted a profit of Rs 16.17 crore in the preceding quarter (Q4 FY25) and Rs 12.75 crore in the corresponding quarter a year ago (Q1FY25).

However, the total revenue of the Hyderabad-based pharmaceutical company jumped by 34 per cent to Rs 128.24 crore from Rs 95.7 crore in the same period a year ago. The revenue increased marginally quarter-on-quarter from Rs 128.20 crore in Q4 FY25.

Gross profit increased by 14.67 per cent to Rs 54.7 crore, while gross margin declined from 49.79 per cent to 42.64 per cent, the company said in the filing.

Meanwhile, EBITDA stood at Rs 24.1 crore, with an EBITDA margin of 18.79 per cent.

On June 30, a massive explosion took place at Sigachi's Pashamylaram-based factory, claiming multiple lives and significant damage to the facility.

In the aftermath of the tragic incident, the company has slipped into losses in the April-June quarter.

"Q1 FY26 has been an emotionally and operationally challenging quarter for us. The tragic incident led to the loss of lives and injuries among our workforce, and we extend our deepest condolences to all affected," Sigachi Industries Limited MD & CEO, Amit Raj Sinha, said.

Our immediate focus was on supporting families, ensuring medical care, and cooperating fully with authorities, Sinha said.

The incident disrupted manufacturing operations, damaged plant infrastructure and inventory, and delayed shipments, impacting revenue and margins, he added.

This event has prompted a comprehensive review of the operational controls and risk governance of the company.

"Looking ahead, we are committed to a decisive reset, prioritising safety, accelerating cost improvements, focusing on margin-led portfolios, and rebuilding with global standards, resilience, and transparency," Sinha stated.

Meanwhile, the company's shares settled in negative territory on Friday. The stock closed at Rs 38.71, down 2.64 per cent.

--IANS

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