Revised Outcome of Board meeting
Awaiting price reaction for this filing.
Sangam Health Care Products has resubmitted its Q2 and H1 FY26 results to fix a typographical error in the balance sheet where 'Other Equity' was wrongly shown as zero instead of negative Rs. 1,486.07 lakhs, which also corrected total equity and liabilities from Rs. 4,085.72 lakhs to Rs. 1,347.21 lakhs. For Q2 FY26, total income stood at Rs. 304.01 lakhs, down from Rs. 361.96 lakhs in Q2 FY25, while H1 FY26 income fell to Rs. 585.67 lakhs from Rs. 701.14 lakhs. Despite the revenue decline, net profit for H1 FY26 improved sharply to Rs. 33.62 lakhs (from Rs. 15.34 lakhs), with EPS rising to Rs. 0.23. However, the balance sheet reveals negative reserves of Rs. (1,458.19) lakhs, pushing total equity into negative territory at Rs. (1,972.12) lakhs, and operating cash flow remained negative at Rs. (236.81) lakhs. The statutory auditor issued an unqualified limited review report with no modifications.
The correction exposes a deeply negative net worth (accumulated losses exceed share capital), which is a material concern for shareholders despite the improvement in profitability. The simultaneous revenue decline and negative operating cash flow suggest the profit recovery may not be sustainable without addressing the balance sheet weakness.