Unaudited Financial Results for the quarter and half year ended 30.09.2025
Awaiting price reaction for this filing.
Sangam Health Care Products reported a sharp jump in profitability despite weaker sales. Q2 standalone revenue fell to Rs 304.01 lakh from Rs 361.96 lakh a year ago, and half-year revenue declined to Rs 585.67 lakh from Rs 701.14 lakh (down ~16.5%). However, Q2 profit after tax jumped to Rs 23.36 lakh from Rs 7.24 lakh, and half-year PAT more than doubled to Rs 33.62 lakh from Rs 15.34 lakh, driven by lower expenses. Half-year EPS stood at Rs 0.23 vs Rs 0.10. The balance sheet continues to show deeply negative other equity of Rs (3,492.13) lakh, with total borrowings of around Rs 2,403 lakh and short-term trade payables of Rs 577 lakh. Operating cash flow for the period was negative at Rs (236.48) lakh, meaning the business is still burning cash, while financing activities show fresh borrowings of Rs 226.53 lakh to sustain operations. The statutory auditors (M M Reddy & Co) issued a clean limited review report with no qualifications.
Short-term: PAT growth looks impressive but is coming off a very small base and is not backed by cash generation — the company remains dependent on borrowings to stay afloat. The negative reserves and persistent cash burn are key red flags for shareholders despite the headline profit improvement.