Unjha Formulations achieved a remarkable turnaround in Q1 FY27, posting a net profit of ₹15.69 lakh compared to a net loss of ₹74.28 lakh in the corresponding quarter of the previous year. The company's Board of Directors approved the unaudited financial results on August 3, 2026, following a review by statutory auditors. This represents a significant improvement from the substantial profit decline of 58.97% to ₹0.16 crore that was reported in Q1 FY2026, demonstrating the company's ability to recover from challenging operational conditions.
The company's net sales/income from operations remained relatively stable at ₹330.75 lakh in Q1 FY27, showing a slight increase from ₹327.81 lakh in Q4 FY26 but declining from ₹361.41 lakh in Q1 FY26. However, total expenses decreased significantly to ₹314.98 lakh from ₹382.21 lakh in the preceding quarter and ₹324.41 lakh in the same quarter last year. The primary driver of the quarterly profit was a sharp reduction in employee benefits expenses, which fell to ₹20.90 lakh from ₹33.93 lakh in Q4 FY26. Other expenses also decreased to ₹27.20 lakh from ₹26.35 lakh, contributing to improved operational efficiency.
The company's cost of materials consumed rose to ₹319.66 lakh from ₹313.55 lakh in Q4 FY26, representing a slight increase in raw material costs. However, this was offset by favorable inventory adjustments, which showed a positive adjustment of ₹56.63 lakh compared to an expense of ₹3.70 lakh in Q4 FY26. The company also benefited from changes in inventories, which contributed to the improved bottom line performance. The turnaround was driven by improved operational efficiency rather than top-line growth, with the company returning to profitability through better cost management despite stable revenue levels.
Profit before tax reached ₹15.69 lakh in Q1 FY27, representing a significant improvement from the net loss of ₹49.38 lakh reported in Q4 FY26 and the net profit of ₹38.99 lakh in Q1 FY26. The company's financial results were reviewed by M/s Jain & Golechha, Chartered Accountants, in accordance with Standard on Review Engagement (SRE) 2410. The auditor issued a limited review report stating that nothing came to their attention to suggest the financial statements contained material misstatements. The results comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with Managing Director Krutiben M. Patel and CFO Ganpat Prajapati signing off on the results.
