Venmax Drugs Reports ₹3.74 Lakh Q1 Profit Despite Sequential Revenue Decline

Hyderabad, July 23, 2025 – Venmax Drugs and Pharmaceuticals Ltd (BSE: 531015) has reported a net profit of ₹3.74 lakh for Q1FY26, down sharply from the previous quarter, which was ₹77.4 lakhs, but higher on a year-on-year basis. The company posted improved core revenues despite the absence of other income that had significantly boosted Q4FY25 results.

The rise in operational revenue reflects improved business traction and execution. Cost controls, stable liquidity, and higher trade receivables supported operations, though profitability declined due to the absence of one-time gains. The performance signals a shift toward more consistent, core-driven growth.

Stock Performance 

As of market close on July 23, 2025, Venmax Drugs was trading at ₹28.98, up 3.35%. The stock touched an intraday high of ₹29.33 and low of ₹26.64. VWAP stood at ₹28.94, with turnover at ₹9.15 lakh.

Q1FY26 Financial Snapshot

In Q1FY26, the company reported total income of ₹121.03 lakh, reflecting a 10.7% sequential decline due to the absence of other income that had boosted Q4FY25. Despite this, operational revenue surged nearly fourfold to ₹121.03 lakh from ₹33.28 lakh, indicating a sharp pickup in core business activity.

Total expenses rose to ₹117.29 lakh, keeping pace with the growth in operations. Net profit stood at ₹3.74 lakh, with no reported tax liability. Earnings per share dropped to ₹0.071 from ₹1.485 in the previous quarter, primarily due to the absence of non-operating gains that contributed to the Q4FY25 bottom line.

Balance Sheet Position (as of June 30, 2025)

As of June 30, 2025, Venmax reported total assets of ₹711.67 lakh, up from ₹516.96 lakh at the end of March. Cash and cash equivalents remained steady at ₹251.94 lakh, indicating a strong liquidity position. Trade receivables rose sharply to ₹230.81 lakh from ₹95.26 lakh, reflecting improved billing and operational activity.

Short-term loans and advances also increased to ₹213.75 lakh, supporting working capital needs. Equity stood at ₹438.93 lakh, slightly lower than the previous quarter. The rise in total liabilities was driven by an increase in trade payables and other current liabilities, aligned with the scale-up in operations.

Operational Highlights

• Cost Management: Purchases of stock-in-trade stood at ₹112.25 lakh, with a minor inventory gain of ₹3.18 lakh. Other expenses were tightly managed at ₹3.46 lakh compared to ₹27.83 lakh in Q4FY25.
• Profitability: Net profit dropped sharply sequentially but improved significantly YoY from ₹1.08 lakh to ₹3.74 lakh.
• EPS: Earnings per share came in at ₹0.071, compared to ₹1.485 in Q4FY25.

Cash Flow Overview (Q1FY26)

• Net cash from operating activities: ₹9.70 lakh
• Net cash from financing activities: Outflow of ₹6.00 lakh (due to share application adjustments)
• Net cash increase: ₹3.70 lakh

Outlook

Improved operational revenue and strong liquidity supported the stock’s upward move despite a drop in overall profit. The market is responding to core business traction and tight cost controls. Sustained growth in trade activity and working capital use will determine earnings stability ahead.

Auditor Review

The limited review report issued by PPKG & Co, Chartered Accountants, expressed an unmodified opinion. The review confirmed that the results were prepared in accordance with Ind AS and SEBI norms, with no material misstatement identified.

About the Company

Venmax Drugs & Pharmaceuticals Limited is a Hyderabad-based pharmaceutical company engaged in the trading of medicines and APIs. The company’s equity shares are listed on the BSE under scrip code 531015. It operates in a single segment and continues to focus on expanding its distribution footprint across India.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/3e07ad0f-6313-414f-8934-bdc264f67ba7.pdf

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