Mangalam Drugs & Organics Share Price Drop Over 6% After Company Discloses Loan Default

Mumbai, November 19, 2025: Shares of Mangalam Drugs & Organics Ltd (NSE: MANGALAM | BSE: 532637) tumbled over 6% in early trading on Wednesday after the company made a regulatory filing on November 18, 2025, disclosing defaults on two bank loans. Investors reacted sharply to the news amid concerns over the company’s cash flow.

Mangalam Drugs & Organics Ltd is engaged in manufacturing active pharmaceutical ingredients (APIs) primarily for anti-TB, anti-malarial, and anti-HIV treatments. The company was incorporated in 1972 and has its manufacturing facility in Vapi, Gujarat. It was listed on both BSE and NSE and trades under the tickers MANGALAM and 532637, respectively.

Default Disclosure Details

The company has defaulted on two loans, each overdue for more than 30 days. According to its regulatory filing, the first loan, taken from Bank of Maharashtra (Cash Credit A/C: 60383561246), is overdue by ₹414.93 lakh and has been in default since October 17, 2025. The second loan, from Bank of Baroda (Cash Credit A/C: 04170500000243), totals ₹352.03 lakh and has been in default since October 20, 2025.

Management’s Explanation and Business Impact

The company issued an internal communication highlighting the business challenges that led to the default. One of the most prominent issues faced by the management is that the company’s operations are heavily dependent on funding from the formulators for TB, HIV, and Malaria treatments. To further deepen the impact of funds, the company’s aid from the USA has also discontinued, which has severely impacted the company’s order flows.

However, the company has continued to receive global funds. But the budget from them has also significantly reduced. This has further slowed down the order flow of the company. The reduced order flow has also impacted the cash flow of the company, which has resulted in delays in debt repayment.

In the communication, the company further clarified that it is taking corrective measures to deal with the situation. So far, the company has initiated discussions with its lenders and has requested loan restructuring options. It is expected that a detailed proposal will be submitted by mid-December 2025. The management of the company has also reiterated that arrangements are being made to clear overdue amounts “as soon as possible.”

Market Snapshot

The share price of Mangalam Drugs and Organics Limited was trading at ₹57.41 as of November 19, 2025, 12:50 pm. This was a 6.18% or ₹3.78 fall from its previous close of ₹61.19. The intraday range so far has been between ₹57.10 and ₹62.40. The company has had a mildly negative trading session so far. Its total market capitalisation stood at ₹90.87 crore. Further, it had a total traded value and volume of ₹0.33 crore and 0.57 lakh shares, respectively.

REF: https://nsearchives.nseindia.com/corporate/MANGALAM_18112025151124_36Intimation_by_Company_regarding_default_of_Bank.pdf

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