Submission of results for the half year and year ended on 31st March 2025
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Awaiting price reaction for this filing.
Evoq Remedies reported a sharp jump in revenue from operations to ₹1,175.67 lakhs in FY25 from ₹405.25 lakhs in FY24, nearly tripling YoY. However, profit after tax dropped sharply to ₹8.82 lakhs from ₹45.24 lakhs, with EPS falling to ₹0.04 from ₹0.33. Operating cash flow turned deeply negative at ₹(1,462.30) lakhs versus ₹531.98 lakhs inflow last year, while cash was largely raised through fresh share capital (₹1,921 lakhs via security premium). The Board approved acquiring up to 51% of Poshan Nutriwell Private Limited via a share swap and raising up to ₹99 crore through convertible warrants to non-promoters. The auditor issued an unmodified opinion but flagged serious concerns including an ongoing SEBI investigation and show cause notice over the ₹19.21 crore preferential allotment, a ₹655.03 lakh GST order for FY18, ₹2,506 lakhs in related-party loans violating Companies Act sections, and failure to appoint an internal auditor.
Despite headline revenue growth, the combination of collapsing profits, deeply negative operating cash flow, and multiple regulatory and governance red flags (SEBI probe, GST litigation, related-party compliance failures) makes this a high-risk update for shareholders. The proposed acquisition and large warrant-based fund raise could be transformational but will significantly dilute existing shareholders and introduce additional execution risk.