SMS Pharmaceuticals Ltd — Interim / Quarterly Report 2026

May 22, 2026

SMS

Pharmaceuticals Limited

Registered & Corporate Office :
Plot No. 72, H. No. 8-2-334/3 & 4, Road No. 5,
Opp. SBI Executive Enclave, Banjara Hills,
Hyderabad - 500 034, Telangana, INDIA.
Tel : +91-40-2525 9999,3535 9999
Fax : +91-40-2525 9889
CIN : L24239TG1987PLC008066
Email: info@smspharma.com, www.smspharma.com

Date: 22nd May, 2026

To,
The Manager,
Corporate Filings Department,
BSE Limited,
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai- 400 001

The Manager,
Listing Compliance Department,
National Stock Exchange of India Ltd.
Exchange Plaza, Plot no. C/1, G Block,
Bandra-Kurla Complex, Bandra (E),
Mumbai - 400 051.

Security Code: 532815
Symbol: SMSPHARMA

Dear Sir/Madam,

Subject: Outcome of the Board Meeting - Financial results for the fourth quarter and year ended 31st March, 2026.

With reference to the cited subject matter, we would like to inform you that the Board of Directors of the Company at their meeting held today i.e., 22nd May, 2026, has inter- alia, transacted and approved the following item(s) of the Agenda:

1. Audited Financial Results

Approved the Audited (Standalone & Consolidated) Financial Results for the fourth quarter and year ended 31st March, 2026 and Auditors’ Report thereon duly reviewed by the Audit Committee and Statutory Auditors of the Company.

Pursuant to Regulation 33(3)(d) of Listing Regulations and SEBI Circular No. CIR/CFD/CMD/56/2016, dated May 27, 2016, the Company hereby confirms that the Statutory Auditors have issued their Audit Report with 'Unmodified Opinion' on the Audited (Standalone and Consolidated) Financial Statements of the Company for the year ended 31st March, 2026.

1. Declaration of Dividend

Recommended the Final Dividend of ₹0.40 Paise (i.e., 40%) per equity share of face value of ₹1/-each for the financial year 2025-26, subject to approval of the members at the ensuing Annual General Meeting (AGM). The AGM date and book closure / record date for the purpose of the payment of dividend will be informed in due course.

(Hyderabad)

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1. Shifting of Registered office within the local limits

Approved the shifting of Registered office of the Company from Plot No. 72, H. No.: 8-2-334/3&4, Road No. 5, Opp. SBI Executive Enclave, Banjara Hills, Hyderabad, 500034, Telangana, India to 8th Floor, Trendset Jayabheri Connect, Kondapur, Serilingampally, Hyderabad- 500084, Rangareddy Dist., Telangana, India with effect from 25th May, 2026, which is within the local limits of the same City.

1. Appointment/Re-appointment of Auditors

a) Cost Auditor: Approved the appointment of M/s. Annapragada & Co., Cost Accountants (Formerly Known as M/s. Harshitha Annapragada & Co.,) as Cost Auditors of the Company for the financial Year 2026-27. Additional information as required under Regulation 30 of SEBI Listing Regulations is enclosed as “Annexure- I”

b) Internal Auditor: Approved the re-appointment of M/s. Adusumilli & Associates, Chartered Accountants as Internal Auditors of the Company for the financial Year 2026-27. Additional information as required under Regulation 30 of SEBI Listing Regulations is enclosed as “Annexure- II”

Further, pursuant to Regulation 33 of the SEBI Listing Regulations, we enclose the following:

a) Statement of Audited (Standalone & Consolidated) Financial Results of the Company for the fourth quarter and year ended on 31st March, 2026;

b) Auditors’ Report issued by M/s. Suryanarayana & Suresh, Chartered Accountants, Statutory Auditors of the Company, both on standalone and consolidated basis;

c) Statement of Deviation or Variation in utilisation of funds raised through preferential issue for the quarter ended 31st March, 2026.

The meeting of Board of Directors commenced at 10.30 AM and concluded at about 01.35 PM

Please take the above intimation on your records.

Thanking you

Yours faithfully

For SMS Pharmaceuticals Limited

TANILAND, THIRD ANGLE
FAX: 0301
TUNING, 01/01/2026

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SMS PHARMACEUTICALS LIMITED (CIN: L24239TG1987PLC008066) Regd. Office: Plot No.72, H.No.8-2-334/3&4, Road No.5, Opp.SBI Executive Enclave, Banjara Hills, Hyderabad-500 034, Telangana, India Tel: +91-40-3535 9999, Fax: +91-40-2525 9889; Email: complianceofficer@smspharma.com Standalone Statement of Audited Financial Results for the Quarter and Year ended 31st March, 2026 (Rs. In Lakhs)
S.No	Particulars	Quarter ended			Year ended
		31-03-2026	31-12-2025	31-03-2025	31-03-2026	31-03-2025
		(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
1	Income
	(a) Revenue from Operations	23,794.75	21,044.70	24,819.56	88,687.10	78,274.81
	(b) Other Income	257.44	375.24	142.41	835.38	622.44
2	Total Income	24,052.19	21,419.94	24,961.97	89,522.48	78,897.25
	Expenses
	(a) Cost of Materials Consumed	12,831.07	13,770.83	11,543.30	51,687.27	49,554.17
	(b) Changes in Inventories	500.89	(2,542.65)	3,037.12	(2,284.17)	(6,481.39)
	(c) Manufacturing Expenses	2,344.83	2,179.17	2,540.80	9,070.22	8,635.04
	(d) Employee Benefits Expense	2,943.49	2,105.21	2,663.00	8,792.34	8,008.42
	(e) Finance Cost	527.67	622.23	506.50	2,307.56	1,854.09
	(f) Depreciation and Amortization Expense	1,013.09	1,001.52	863.99	3,991.93	3,433.73
	(g) Other Expenses	1,186.59	1,152.77	900.82	4,330.20	4,561.14
3	Total Expenses - (a to g)	21,347.63	18,289.08	22,055.53	77,895.35	69,565.20
	Profit/(loss) Before Exceptional and Extraordinary Items and Tax (1-2)	2,704.56	3,130.86	2,906.44	11,627.13	9,332.05
4	Exceptional items	-	-	-	-	-
5	Profit/(loss) Before Extraordinary Items and Tax (3-4)	2,704.56	3,130.86	2,906.44	11,627.13	9,332.05
6	Extraordinary Items	-	-	-	-	-
7	Profit/(loss) Before Tax (5-6)	2,704.56	3,130.86	2,906.44	11,627.13	9,332.05
8	Tax Expenses
	(a) Current Tax relating to Current Period	548.00	725.00	465.00	2,598.00	1,990.00
	(b) Current Tax relating to Earlier Period	(4.69)	-	-	(4.69)	(25.94)
	(c) Deferred Tax	69.16	72.06	379.20	272.89	529.87
	Total Tax Expense	612.47	797.06	844.20	2,866.20	2,493.93
9	Net Profit / (Loss) after Tax (7-8)	2,092.09	2,333.80	2,062.24	8,760.93	6,838.12
10	Other Comprehensive Income (OCI):
	Items that will not be reclassified to profit or Loss:
	(i) Remeasurement gains/(losses) on defined benefit plans	31.32	(1.66)	(73.36)	4.43	(67.28)
	(ii) Income Tax effect on the above	(7.88)	0.42	18.46	(1.12)	16.93
11	Total Other comprehensive Income/(loss),net of tax	23.44	(1.24)	(54.90)	3.31	(50.35)
	Total Comprehensive Income (9+10)	2,115.53	2,332.56	2,007.34	8,764.24	6,787.77
12	Paid-up equity share capital (Face Value of Re.1/- each)	936.52	936.52	886.52	936.52	886.52
13	Other Equity excluding revaluation reserves				79,542.17	66,420.45
14	Earnings Per Equity Share of (Face Value of Re.1/- each)	2.29	2.57	2.43	9.58	8.07
	Basic / Diluted (not annualised)

S

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Standalone Audited Statement of Assets and Liabilities as at 31st March, 2026
(Rs.in Lakhs)

Sr. No.	Particulars	As at		As at
		31-03-2026	(Audited)	31.03.2025	(Audited)
A	ASSETS
1	Non-Current Assets
	(a) Property, Plant and Equipment	53,121.67		53,084.79
	(b) Capital Work-in-Progress	11,582.43		3,467.14
	(c) Intangible Assets	279.60		212.96
	(d) Financial Assets:
	(i) Investments	5,210.60		4,510.60
	(ii) Bank Balances	396.32		294.52
	(iii) Other Financial Assets	723.38		694.78
	(e) Other Non-Current Assets	3,129.24		899.23
	Sub Total :Non-Current Assets	74,443.24		63,164.02
2	Current Assets
	(a) Inventories	35,095.33		28,472.92
	(b) Financial Assets
	(i) Trade Receivables	21,587.70		20,323.36
	(ii) Cash and Cash Equivalents	4,578.15		4,139.27
	(iii) Bank Balances (Other than (ii) above)	19.78		18.70
	(iv) Other Financial Assets	344.81		989.26
	(c) Other Current Assets	2,031.03		1,463.94
	(d) Current Tax Asset (Net)	-		38.71
	Sub Total : Current Assets	63,656.80		55,446.16
	TOTAL ASSETS	1,38,100.04		1,18,610.18
B	EQUITY AND LIABILITIES
1	Equity:
	(a) Equity Share Capital	936.52		886.52
	(b) Other Equity	79,542.17		66,420.45
	Sub-Total -Shareholders' funds	80,478.69		67,306.97
2	Liabilities:
	Non-Current Liabilities
	(a) Financial Liabilities
	(i) Borrowings	17,164.01		13,936.42
	(b) Provisions	119.86		120.65
	(c) Deferred Tax Liabilities (net)	5,083.76		4,809.76
	Sub-Total -Non-Current Liabilities	22,367.63		18,866.83
3	Current Liabilities
	(a) Financial Liabilities
	(i) Borrowings	19,340.79		17,139.15
	(ii) Trade Payables:
	(a) Dues to Micro & Small Enterprises	24.67		9.64
	(b) Dues to Creditors Other than Micro & Small Enterprises	12,014.51		11,381.56
	(iii) Other Financial Liabilities	3,136.93		3,336.72
	(b) Provisions	92.46		110.80
	(c) Other Current Liabilities	582.87		458.51
	(d) Current Tax Liability (Net)	61.49		-
	Sub-Total - Current Liabilities	35,253.72		32,436.38
	TOTAL - EQUITY AND LIABILITIES	1,38,100.04		1,18,610.18

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SMS Pharmaceuticals Limited

Standalone Statement of Cash Flow for the Year Ended March 31, 2026

(All amounts in Indian Rupees in Lakhs, unless otherwise stated)

S No	Particulars	for the Year Ended
		31.03.2026
(Audited)	31.03.2025
(Audited)
A	Cash Flow from Operating Activities
	Profit Before Tax	11,627.14	9,332.05
	Adjustments for:
	Depreciation and Amortisation Expense	3,991.93	3,433.73
	Interest Income	(61.86)	(20.78)
	Interest on lease liability	-	11.05
	Interest on Borrowings	2,184.36	1,732.09
	Provision for Employee Benefits	(14.70)	(37.94)
	Amortisation of Transaction Cost on Borrowings	22.06	14.68
	Profit on Sale of Assets	-	(3.33)
	Loss on Sale of Assets	-	1.28
		17,748.93	14,462.83
	Change in Operating Assets and Liabilities
	(Increase)/Decrease in Trade Receivables	(1,264.34)	3,299.96
	(Increase)/Decrease in Inventories	(6,622.41)	(5,103.14)
	(Increase)/Decrease in Other Non Current Financial Assets	(28.60)	(177.73)
	(Increase)/Decrease in Other Non Current Asset	(2,230.02)	487.89
	(Increase)/Decrease in Other Current Financial Assets	626.32	(657.31)
	(Increase)/Decrease in Other Current Assets	(567.10)	811.51
	(Increase)/Decrease in Prepaid Taxes	(83.11)	153.39
	Increase/(Decrease) in Trade Payables	647.99	(3,741.07)
	Increase/(Decrease) in Other Financial Liabilities	126.11	618.57
	Increase/(Decrease) in Other Current Liabilities	124.37	(0.34)
		(9,270.79)	(4,308.27)
	Cash generated from Operations	8,478.14	10,154.56
	Income Taxes Paid	(2,410.00)	(1,983.34)
	Net Cash Inflow from Operating Activities "A"	6,068.14	8,171.22
B	Cash flow from Investing Activities
	Purchase of Property, Plant and Equipment	(12,510.50)	(12,337.98)
	Sale of Property, Plant and Equipment	-	5.59
	Investment in Subsidiary	(700.00)	(0.93)
	Investment in Deposits	(0.41)	(1.49)
	Margin Money Deposits	(101.79)	(25.69)
	Interest Received on Margin Money Deposit	79.99	16.68
	Net Cash Inflow (Outflow) from Investing Activities "B"	(13,232.71)	(12,343.82)
C	Cash Flow from Financing Activities
	Proceeds from Long Term Borrowings	6,231.86	6,372.38
	Repayment of Long Term Borrowings	(3,435.20)	(4,409.66)
	Proceeds from Short Term Borrowings	2,610.50	1,080.29
	Interest paid on Borrowings	(2,211.17)	(1,735.29)
	Repayment of Lease Liability	-	(70.22)
	Net Proceeds from issue / conversion of Share Warrants	4,762.07	3,809.03
	Dividend Paid to Company's Shareholders	(354.61)	(338.61)
	Net Cash Inflow (Outflow) from Financing Activities "C"	7,603.45	4,707.92
	Net Increase (Decrease) in Cash and Cash Equivalents (A+B+C)	438.88	535.32
	Cash and Cash Equivalents at the beginning of the Financial Year	4,139.27	3,603.95
	Cash and Cash Equivalents at end of the period	4,578.15	4,139.27

The accompanying notes are an integral part of the Standalone Financial Statements.

1. The Cash Flow statement has been prepared under the indirect method as set out in Indian Accounting Statement (Ind AS 7) Statement of Cash Flows.
2. Previous year figures have been regrouped/reclassified to confirm to current year classification.

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Notes:

1. The above standalone audited financial results have been reviewed by the Audit Committee on May 21, 2026 and approved by the Board of Directors at its meeting held on May 22, 2026. The Statutory Auditors have issued an un-modified opinion on the financial results.

2. These standalone financial results of the Company have been prepared in accordance with the Indian Accounting Standards ("Ind AS") prescribed under section 133 of the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India (SEBI).

3. The Company is engaged in the manufacturing of Active Pharmaceutical Ingredients and their intermediates and the same constitutes a single reportable business segment as per Ind AS108.

4. The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes viz the Code on Wages, 2019, the Code on Social Security, 2020. the! Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Codes"). The Codes have been made effective from November 21, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The incremental impact of these changes, assessed by the Company, on the basis of the information available, consistent with the guidance provided by the Institute of Chartered Accountants of India, is not material, but liability has been recognised in the standalone financial results of the Company for the year ended March 31, 2026.

5. During the reporting financial year, 50,00,000 warrants were converted into equity shares upon receipt of the balance 75% of the issue price, amounting to ₹4,762.50 lakhs. These warrants were part of the total 90,00,000 warrants previously issued by the Company on a preferential basis. Pursuant to this conversion, the paid-up equity share capital of the Company has increased to ₹9,36,52,030 comprising 9,36,52,030 equity shares of ₹1/- each, as at March 31, 2026.

This conversion has resulted in an increase in the Company’s share capital and securities premium. Consequently, there has been a dilutive impact on the earnings per share, which has been duly reflected in the computation of diluted EPS for the reporting period.

1. The Board of Directors of the company has recommended a dividend of Re. 0.40 per share of face value Re. 1/- each (40%) for the financial year 2025-26, subject to approval of members at the ensuing annual general meeting.

2. *The figures for the current quarter and quarter ended March 31, 2025 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2026 and March 31, 2025, respectively and the unaudited published year to date figures up to third quarter ended December 31, 2025 and December 31, 2024 respectively. The figures have been regrouped / reclassified as necessary.

Place: Hyderabad
Date: May 22, 2026

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SURYANARAYANA & SURESH
Chartered Accountants
CAD INDIA
Flat # C1, Millenium House, # 8-2-601/B, Road No. 10, Near Zaheer Nagar Cross Road, Banjara Hills, Hyderabad - 500 034.
040-23386783/35164367
suryanarayanasuresh@gmail.com

Independent Auditor's report on the audit of annual standalone financial results of SMS PHARMACEUTICALS LIMITED under regulation 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

To
The Board of Directors of
SMS PHARMACEUTICALS LIMITED

Opinion

We have audited the accompanying Statement of Standalone Financial Results of SMS PHARMACEUTICALS LIMITED ('the Company') for the quarter and year ended March 31, 2026 being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the Listing Regulations) and both included in the Statement.

In our opinion and to the best of our information and according to the explanations given to us, Standalone Financial Results for the quarter and year ended March 31, 2026:

a. are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and

b. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards prescribed under section 133 of the Companies Act 2013, ("the Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the quarter and year ended March 31, 2026.

Basis for Opinion

We conducted our audit of this Standalone Financial Results in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the independence requirements that are relevant to our audit of the Standalone Financial Results under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

072
Hyderabad
F.R.No.6066315
Chartered Accountants

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Management's Responsibilities for the Standalone Financial Results

These standalone financial results have been prepared on the basis of the standalone annual financial statements. The Company's Board of Directors is responsible for the preparation and presentation of the Standalone Financial Results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Company in accordance with prescribed under section 133 of the Act, read with relevant rules issued there under and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Results, the Board of Directors is responsible for assessing the Company's ability, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the financial reporting process of the Company.

Auditor's Responsibilities

Audit of the Standalone Financial Results for the quarter and year ended March 31,2026

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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• Identify and assess the risks of material misstatement of the Standalone Financial Results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.

• Evaluate the appropriateness and the reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulations 33 of the Listing Regulations.

• Conclude on the appropriateness of the Management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Results, including the disclosures, and whether the Standalone Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the Standalone Financial Results of the Company to express an opinion on the Standalone Financial Results.

Materiality is the magnitude of misstatements in the Standalone Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Results.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matter

The Statement includes the Standalone Financial Results for the quarter ended March 31, 2026 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subjected to limited review by us. Our opinion on the Statement is not modified in respect of this matter.

Place: Hyderabad
Date: 22-05-2026

For Suryanarayana & Suresh.,
Chartered Accountants
Reg. No.006631S

Muktha Prabhakar
Partner
M. No. 200247

UDIN: 26200247DUTNVO7323

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SMS PHARMACEUTICALS LIMITED (CIN: L24239TG1987PLC008066) Regd. Office: Plot No.72, H.No.8-2-334/3&4, Road No.5, Opp.SBI Executive Enclave, Banjara Hills, Hyderabad-500 034, Telangana, India Tel: +91-40-3535 9999, Fax: +91-40-2525 9889; Email: complianceofficer@smspharma.com Consolidated Statement of Audited Financial Results for the Quarter and Year Ended 31st March, 2026 (Rs. In Lakhs)
S.No	Particulars	Quarter ended			Year ended
		31-03-2026	31-12-2025	31-03-2025	31-03-2026	31-03-2025
		(Audited)	(Unaudited)	(Audited)	(Audited)	(Audited)
1	Income
	(a) Revenue from Operations	23,794.75	21,044.70	24,819.56	88,687.10	78,274.81
	(b) Other Income	257.44	375.24	142.41	835.38	622.44
2	Total Income	24,052.19	21,419.94	24,961.97	89,522.48	78,897.25
	Expenses
	(a) Cost of Materials Consumed	12,846.05	13,777.07	11,596.41	51,643.79	49,651.63
	(b) Changes in Inventories	475.58	(2,542.65)	3,037.12	(2,309.48)	(6,481.39)
	(c) Manufacturing Expenses	2,344.83	2,179.17	2,540.80	9,070.22	8,635.04
	(d) Employee Benefits Expense	2,946.72	2,105.21	2,663.00	8,795.56	8,008.42
	(e) Finance Cost	527.67	622.23	506.51	2,307.56	1,854.09
	(f) Depreciation and Amortization Expense	1,013.09	1,001.52	863.99	3,991.93	3,433.73
	(g) Other Expenses	1,191.57	1,161.38	901.65	4,359.14	4,561.98
3	Total Expenses - (a to g)	21,345.51	18,303.93	22,109.48	77,858.72	69,663.50
	Profit/(loss) Before Exceptional and Extraordinary Items and Tax (1-2)	2,706.68	3,116.01	2,852.49	11,663.76	9,233.75
4	Exceptional items	-	-	-	-	-
5	Profit/(loss) Before Extraordinary Items and Tax (3-4)	2,706.68	3,116.01	2,852.49	11,663.76	9,233.75
6	Extraordinary Items	-	-	-	-	-
7	Profit/(loss) Before Tax (5-6)	2,706.68	3,116.01	2,852.49	11,663.76	9,233.75
8	Tax Expenses
	(a) Current Tax relating to Current Period	548.00	725.00	465.00	2,598.00	1,990.00
	(b) Current Tax relating to Earlier Period	(4.69)	-	-	(4.69)	(25.94)
	(c) Deferred Tax	66.92	72.06	379.20	270.66	529.87
	Total Tax Expense	610.23	797.06	844.20	2,863.97	2,493.93
9	Net Profit / (Loss) after Tax (7-8)	2,096.45	2,318.95	2,008.29	8,799.79	6,739.82
10	Share of Profit/(Loss) in Associate, net of tax	1,174.94	28.25	23.19	1,399.12	173.68
	Net Profit /(Loss) after taxes and share of profit/(loss) from associate (9+10)	3,271.39	2,347.20	2,031.48	10,198.91	6,913.50

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| 12 | Other Comprehensive Income (OCI):
Items that will not be reclassified to Profit & Loss | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | (i)Remeasurement Gain / (Loss) of the defined benefit plans | 31.32 | (1.66) | (73.36) | 4.43 | (67.28) |
| | (ii)Income Tax effect on the above | (7.88) | 0.42 | 18.46 | (1.12) | 16.93 |
| | (iii) Share of Other Comprehensive Income in Associates | 6.50 | 0.88 | (4.41) | 9.12 | (2.84) |
| | (iv)Share of Income Tax effect on the above in Associates | (1.69) | (0.23) | 1.15 | (2.37) | 0.74 |
| | Total Other comprehensive Income/(loss),net of tax | 28.25 | (0.59) | (58.16) | 10.06 | (52.45) |
| | | | | | | |
| 13 | Total comprehensive Income (11+12) | 3,299.64 | 2,346.61 | 1,973.32 | 10,208.97 | 6,861.05 |
| 14 | Profit / (Loss) Attributable to
Shareholders of the Company | 3,271.39 | 2,347.20 | 2,031.54 | 10,198.91 | 6,913.56 |
| | Non-Controlling Interests | 0.00 | (0.00) | (0.06) | (0.00) | (0.06) |
| | | 3,271.39 | 2,347.20 | 2,031.48 | 10,198.91 | 6,913.50 |
| 15 | Other Comprehensive Income/(Loss) Attributable to
Shareholders of the Company | 28.25 | (0.59) | (58.16) | 10.06 | (52.45) |
| | Non-Controlling Interests | - | - | - | - | - |
| | | 28.25 | (0.59) | (58.16) | 10.06 | (52.45) |
| 16 | Total comprehensive income attributable to:
Shareholders of the Company | 3,299.64 | 2,346.61 | 1,973.38 | 10,208.97 | 6,861.11 |
| | Non-Controlling Interests | 0.00 | (0.00) | (0.06) | (0.00) | (0.06) |
| | | 3,299.64 | 2,346.61 | 1,973.32 | 10,208.97 | 6,861.05 |
| 17 | Paid-up equity share capital (Face Value of Re.1/- each) | 936.52 | 936.52 | 886.52 | 936.52 | 886.52 |
| 18 | Other Equity excluding revaluation reserve | | | | 77,644.36 | 63,077.91 |
| 19 | Earnings Per Equity Share of (Face Value of Re.1/- each) | 3.58 | 2.59 | 2.40 | 11.15 | 8.16 |
| | Basic / Diluted (not annualised) | | | | | |

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Consolidated Audited Statement of Assets and Liabilities as at 31st March, 2026
(Rs.in Lakhs)

| Sr.
No. | Particulars | As at | As at |
| --- | --- | --- | --- |
| | | 31-03-2026 | 31-03-2025 |
| | | (Audited) | (Audited) |
| A | ASSETS | | |
| 1 | Non-Current Assets | | |
| | (a) Property, Plant and Equipment | 53,121.67 | 53,084.79 |
| | (b) Capital Work-in-Progress | 12,164.17 | 3,467.14 |
| | (c) Intangible Assets | 279.60 | 212.96 |
| | (d) Financial Assets: | | |
| | (i) Investments | 2,628.34 | 1,167.91 |
| | (ii) Bank Balances | 396.32 | 294.52 |
| | (iii) Other Financial Assets | 723.48 | 694.78 |
| | (e) Other Non-Current Assets | 3,129.24 | 899.23 |
| | Sub Total :Non-Current Assets | 72,442.82 | 59,821.33 |
| 2 | Current Assets | | |
| | (a) Inventories | 35,120.64 | 28,472.92 |
| | (b) Financial Assets | | |
| | (i) Trade Receivables | 21,586.62 | 20,323.36 |
| | (ii) Cash and Cash Equivalents | 4,587.70 | 4,139.91 |
| | (iii) Bank Balances (Other than (ii) above) | 19.78 | 18.70 |
| | (iv) Other Financial Assets | 344.81 | 989.26 |
| | (c) Other Current Assets | 2,141.55 | 1,463.94 |
| | (d) Current Tax Asset (Net) | - | 38.71 |
| | Sub Total : Current Assets | 63,801.10 | 55,446.80 |
| | TOTAL ASSETS | 1,36,243.92 | 1,15,268.13 |
| B | EQUITY AND LIABILITIES | | |
| 1 | Equity: | | |
| | (a) Equity Share Capital | 936.52 | 886.52 |
| | (b) Other Equity | 77,644.36 | 63,077.91 |
| | | 78,580.88 | 63,964.43 |
| | Attributable to owners of the Company | | |
| | Non -Controlling Interest | 0.01 | 0.01 |
| | Sub-Total -Shareholders' funds | 78,580.89 | 63,964.44 |
| 2 | Liabilities: | | |
| | Non-Current Liabilities | | |
| | (a) Financial Liabilities | | |
| | (i) Borrowings | 17,164.01 | 13,936.42 |
| | (b) Provisions | 119.86 | 120.65 |
| | (c) Deferred Tax Liabilities (net) | 5,081.53 | 4,809.76 |
| | Sub-Total -Non-Current Liabilities | 22,365.40 | 18,866.83 |
| 3 | Current Liabilities | | |
| | (a) Financial Liabilities | | |
| | (i) Borrowings | 19,340.79 | 17,139.15 |
| | (ii) Trade Payables: | | |
| | (a) Dues to Micro & Small Enterprises | 24.67 | 9.64 |
| | (b) Dues to Creditors Other than Micro & Small Enterprises | 12,018.69 | 11,382.04 |
| | (iii) Other Financial Liabilities | 3,176.55 | 3,336.72 |
| | (b) Provisions | 92.46 | 110.80 |
| | (c) Other Current Liabilities | 582.98 | 458.51 |
| | (d) Current Tax Liability (Net) | 61.49 | - |
| | Sub-Total - Current Liabilities | 35,297.63 | 32,436.86 |
| | TOTAL - EQUITY AND LIABILITIES | 1,36,243.92 | 1,15,268.13 |

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SMS Pharmaceuticals Limited

Consolidated Statement of Cash Flow for the Year ended March 31, 2026

(All amounts in Indian Rupees in Lakhs, unless otherwise stated)

S No	Particulars	for the Year Ended
		31.03.2026
(Audited)	31.03.2025
(Audited)
A	Cash Flow from Operating Activities
	Profit Before Tax	11,663.77	9,233.75
	Adjustments for:
	Depreciation and Amortisation Expense	3,991.93	3,433.73
	Interest Income	(61.86)	(20.78)
	Interest on lease liability	-	11.05
	Interest on Borrowings	2,184.36	1,732.09
	Provision for Employee Benefits	(14.70)	(37.94)
	Amortisation of Transaction Cost on Borrowings	22.06	14.68
	Profit on Sale of Assets	-	(3.33)
	Loss on Sale of Assets	-	1.28
	Unrealised Profit in Associate Company Sales	(54.57)	97.53
		17,730.99	14,462.06
	Change in Operating Assets and Liabilities
	(Increase)/Decrease in Trade Receivables	(1,263.26)	3,299.96
	(Increase)/Decrease in Inventories	(6,647.72)	(5,103.14)
	(Increase)/Decrease in Other Non Current Financial Assets	(28.70)	(177.73)
	(Increase)/Decrease in Other Non Current Asset	(2,230.02)	487.89
	(Increase)/Decrease in Other Current Financial Assets	626.32	(657.31)
	(Increase)/Decrease in Other Current Assets	(677.61)	811.51
	(Increase)/Decrease in Prepaid Taxes	(83.11)	153.39
	Increase/(Decrease) in Trade Payables	651.68	(3,740.59)
	Increase/(Decrease) in Other Financial Liabilities	129.32	618.57
	Increase/(Decrease) in Other Current Liabilities	124.48	(0.34)
		(9,398.62)	(4,307.79)
	Cash generated from Operations	8,332.37	10,154.27
	Income Taxes Paid	(2,410.00)	(1,983.34)
	Net Cash Inflow from Operating Activities "A"	5,922.37	8,170.93
B	Cash flow from Investing Activities
	Purchase of Property, Plant and Equipment	(13,055.82)	(12,337.99)
	Sale of Property, Plant and Equipment	-	5.60
	Investment in Deposits	(0.41)	(1.49)
	Margin Money Deposits	(101.79)	(25.69)
	Interest Received on Margin Money Deposit	79.99	16.68
	Net Cash Inflow (Outflow) from Investing Activities "B"	(13,078.03)	(12,342.89)
C	Cash Flow from Financing Activities
	Proceeds from Long Term Borrowings	6,231.86	6,372.38
	Repayment of Long Term Borrowings	(3,435.20)	(4,409.66)
	Proceeds from Short Term Borrowings	2,610.50	1,080.29
	Interest paid on Borrowings	(2,211.17)	(1,735.29)
	Repayment of Lease Liability	-	(70.22)
	Net Proceeds from issue / conversion of Share Warrants	4,762.07	3,809.03
	Dividend Paid to Company's Shareholders	(354.61)	(338.61)
	Net Cash Inflow (Outflow) from Financing Activities "C"	7,603.45	4,707.92
	Net Increase (Decrease) in Cash and Cash Equivalents (A+B+C)	447.79	535.96
	Cash and Cash Equivalents at the beginning of the Financial Year	4,139.91	3,603.95
	Cash and Cash Equivalents at end of the Period	4,587.70	4,139.91

The accompanying notes are an integral part of the Standalone Financial Statements.

1. The Cash Flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) Statement of Cash Flows.
2. Previous year figures have been regrouped/reclassified to confirm to current year classification.

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Notes:

1. The above Consolidated audited financial results have been reviewed by the Audit Committee on May 21, 2026 and approved by the Board of Directors at its meeting held on May 22, 2026. The Statutory Auditors have issued an un-modified opinion on the financial results.

2. These consolidation financial results of the Company have been prepared in accordance with the Indian Accounting Standards ("Ind AS") prescribed under section 133 of the Companies Act,2013 ("the Act") read with relevant rules issued thereunder and other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India (SEBI).

3. VKT Pharma Private Limited is considered as an Associate Company for the consolidation in which the Company holds 34.83% as on March 31, 2026 in their equity. Accordingly, the results include appropriate share of the results of said Associate.

4. The Company has joint venture namely "Chemo SMS Enterprises SL" in which there were no financial operations during the reporting period, hence, this entity is not considered for consolidation.

5. SMS Peptides Private Limited, which is a subsidiary company, has incurred expenditure and assets, which have been appropriately consolidated in the financial statements for the reporting period in compliance with the applicable Indian Accounting Standards (Ind AS).

6. During the reporting financial year, the company incorporated a wholly owned subsidiary namely "SMS coLab Private Limited", where there is no operations for the reporting period, hence, not considered for consolidation.

7. Consolidated Financial Statements have been prepared by applying Accounting Standard "Ind AS 28 "Investments in Associates and Joint Ventures" as applicable under the Companies Act,2013 and applicable rules there under.

8. The Group is engaged in the manufacturing of Active Pharmaceutical Ingredients and their intermediates and the same constitutes a single reportable business segment as per Ind AS108.

9. The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes viz the Code on Wages, 2019, the Code on Social Security, 2020. the! Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "Codes"). The Codes have been made effective from November 21, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The incremental impact of these changes, assessed by the Company, on the basis of the information available, consistent with the guidance provided by the Institute of Chartered Accountants of India, is not material, but liability has been recognised in the consolidated financial results of the Company for the year ended March 31, 2026.

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10 During the reporting financial year, 50,00,000 warrants were converted into equity shares upon receipt of the balance 75% of the issue price, amounting to ₹4,762.50 lakhs. These warrants were part of the total 90,00,000 warrants previously issued by the Company on a preferential basis. Pursuant to this conversion, the paid-up equity share capital of the Company has increased to ₹9,36,52,030 comprising 9,36,52,030 equity shares of ₹1/- each, as at March 31, 2026.

11 The Board of Directors of the company has recommended a dividend of Re. 0.40 per share of face value Re. 1/- each (40%) for the financial year 2025-26, subject to approval of members at the ensuing annual general meeting.

12 *The figures for the current quarter and quarter ended March 31, 2025 are the balancing figures between the audited figures in respect of the full financial year ended March 31, 2026 and March 31, 2025, respectively and the unaudited published year to date figures up to third quarter ended December 31, 2025 and December 31, 2024 respectively. The figures have been regrouped / reclassified as necessary.

Place: Hyderabad

Date: May 22, 2026

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SURYANARAYANA & SURESH Chartered Accountants

CAD INDIA

Flat # C1, Millenium House, # 8-2-601/B, Road No. 10, Near Zaheer Nagar Cross Road, Banjara Hills, Hyderabad - 500 034. 040-23386783/35164367 suryanarayanasuresh@gmail.com

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF SMS PHARMACEUTICALS LIMITED

Report on the Audit of Consolidated Financial Results

Opinion

We have audited the accompanying consolidated financial results of SMS PHARMACEUTICALS LIMITED (hereinafter referred to as the holding Company) and its associate (Holding Company, its subsidiary and associate together referred to as the Group) for the quarter and year ended March 31, 2026, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the Listing Regulations).

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of other auditors on separate audited financial statements of the associate company and audited financial statements of subsidiary’s for the quarter and year ended March 31, 2026, the statement

(i) includes the financial results of the entities listed below;
- associate entity - VKT Pharma Private Limited
- subsidiary entity - SMS Peptides Private Limited
- subsidiary entity - SMS Colab Private Limited
- Joint Venture - Chemo SMS Enterprises SL

(ii) are presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and

(iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards other accounting principles generally accepted in India of the net profit and total comprehensive income and other financial information of the Company for the quarter and year ended March 31, 2026.

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Basis for Opinion

We conducted our audit of this Consolidated Financial Results in accordance with the Standards on Auditing ("SAs") specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Results section of our report. We are independent of the Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the independence requirements that are relevant to our audit of the Consolidated Financial Results under the provisions of the Act and the Rules there under and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion.

Management's Responsibilities for the Consolidated Financial Results

These Consolidated financial results have been prepared on the basis of the consolidated annual financial statements. The Holding Company's Board of Directors are responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit/ loss and other comprehensive income and other financial information of the Group including its associates and jointly controlled entities in accordance with the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued there under and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and its associates and jointly controlled entities and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial results that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial results, the respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for assessing the ability of the Group and its associates and jointly controlled entities to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

HYDERABAD F.R.No.0066315

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concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for overseeing the financial reporting process of the Group and of its associates and jointly controlled entities.

Auditor's Responsibilities for the audit of the Consolidated Financial Results for Quarter and Year ended March 31, 2026

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Results.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Consolidated Financial Results, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management.
• Evaluate the appropriateness and the reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulations 33 of the Listing Regulations.
• Conclude on the appropriateness of the Management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such

102

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disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Consolidated Financial Results, including the disclosures, and whether the Consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the Consolidated Financial Results of the Company to express an opinion on the Consolidated Financial Results.

Materiality is the magnitude of misstatements in the Consolidated Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Consolidated Financial Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Consolidated Financial Results.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Other Matter

The consolidated financial results includes the audited financial statements/ financial results of associate namely VKT Pharma Private Limited which have been audited by their auditor whose financial statements / financial results reflect total assets of Rs.32541.61 lakhs as at 31 March 2026 total revenue of Rs.23988.29 lacs total net profit/(loss) after tax of Rs.4017.37 lakhs and total comprehensive income of Rs.4036.75 lakhs for the year ended 31 March 2026.

The consolidated financial results includes the audited financial statements/ financial results of subsidiary namely SMS Peptides Private Limited which have been audited by us whose financial statements / financial results reflect total assets of Rs.728.80 lakhs as at 31 March 2026 total revenue of Rs. 0.00 total net profit/(loss) after tax of Rs.(15.10) lakhs and total comprehensive income of Rs(15.10) lakhs for the year ended 31 March 2026.

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The consolidated financial results includes the audited financial statements/ financial results of subsidiary namely SMS Colab Private Limited which have been audited by us whose financial statements / financial results reflect total assets of Rs.0.65 lakhs as at 31 March 2026 total revenue of Rs. 0.00 total net profit/(loss) after tax of Rs.(0.60) lakhs and total comprehensive income of Rs.(0.60) lakhs for the year ended 31 March 2026.

The consolidated financial results also include the unaudited financial results of joint venture namely M/s Chemo SMS Enterprises SL in which there is no operations during the quarter and year ended March 31, 2026. Hence, there is no significant effect on the financial statements and not material to the group.

The independent auditors’ reports on financial statements/ Financial Results of the entity have been furnished to us and our opinion on the consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of the entity, is based solely on the report of such auditors and the procedures performed by us are as stated in paragraph above.

Our opinion on the consolidated Financial Results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.

The Statement includes the Consolidated Financial Results for the quarter ended 31 March 2026 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our opinion on the Statement is not modified in respect of this matter.

Place: Hyderabad
Date: 22-05-2026

For Suryanarayana & Suresh.,
Chartered Accountants
Reg. No.006631S

Muktha Prabhakar
Partner
M. No.200247

UDIN: 26200247WFDLRF7213

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sms

Pharmaceuticals Limited

Registered & Corporate Office :
Plot No. 72, H. No. 8-2-334/3 & 4, Road No. 5,
Opp. SBI Executive Enclave, Banjara Hills,
Hyderabad - 500 034, Telangana, INDIA.
Tel : +91-40-2525 9999,3535 9999
Fax : +91-40-2525 9889
CIN : L24239TG1987PLC008066
Email: info@smspharma.com, www.smspharma.com

Statement of Deviation / Variation in utilisation of funds raised through Preferential Allotment

Name of listed entity			SMS Pharmaceuticals Limited
Mode of Fund Raising			Preferential Issue
Date of Raising Funds			19^{th} March, 2024
(Allotment of 90,00,000 convertible warrants upon receipt of 25% of the issue price at Rs.127/- per warrant)
Amount Raised			Rs. 1,14,30,00,000/-
(The total issue size is Rs. 1,14,30,00,000/- out of which Company has received Rs. 28,57,50,000/- as 25% upfront payment and allotted 90,00,000 warrants on 19.03.2024.
On 27.03.2025, 40,00,000 warrants have been converted into equity shares on receipt of balance 75% amount i.e. Rs. 38,10,00,000/-)
On 10.09.2025, balance 50,00,000 warrants has been converted into equity shares on receipt of balance 75% amount i.e. Rs. 47,62,50,000/-)
Report filed for Quarter ended			31st March, 2026
Monitoring Agency			Applicable
Monitoring Agency Name, if applicable			M/s. CARE Ratings Limited
Is there a Deviation / Variation in use of funds raised			No
If yes, whether the same is pursuant to change in terms of a contract or objects, which was approved by the shareholders			Not Applicable
If Yes, Date of shareholder Approval			Not Applicable
Explanation for the Deviation / Variation			Not Applicable
Comments of the Audit Committee after review			Nil
Comments of the auditors, if any			Nil
Objects for which funds have been raised and where there has been a deviation, in the following table
Original Object	Modified Object, if any	Original Allocation
(Rs. In lakhs)	Modified allocation, if any	Funds Utilised till 31^{st} March, 2026
(Rs. In lakhs)	Amount of Deviation /Variation for the	Remarks ifany
					of Deviation for the

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				Lakhs)	quarter according to applicable object
Capital Expenditure: Expansion of production capacities in phased manner and installation of additional utility equipments as well as recovery systems. Proposed to start backward integration of Key Starting Materials (KSM) for existing as well as new products under pipeline at R&D by setting up new production blocks.	Not Applicable	6287	N.A	6340	Nil	The Company has fully utilized the issue proceeds amounting to Rs.114.30 Crores towards the objects of the issue by the quarter ended 31st March, 2026. Accordingly, this is the final Statement of Deviation and Variation.
Working Capital: Expanding the production capacities, backward integration of KSM, which led to an increased requirement of Working Capital, operational expenditure and other related expenses.	Not Applicable	4000	N.A	4000	Nil
General Corporate Purposes: which includes, inter alia, meeting ongoing general corporate exigencies and contingencies, expenses of the Company as applicable in such a manner and proportion as may be decided by the Board from time to time, and/or any other general purposes as may be permissible under applicable laws.	Not Applicable	1143	N.A	1089	Nil
Total		11430		11430		-

Deviation or variation could mean:
(a) Deviation in the objects or purposes for which the funds have been raised or
(b) Deviation in the amount of funds actually utilized as against what was originally disclosed or
(c) Change in terms of a contract referred to in the fund raising document i.e. prospectus, letter of offer, etc.

For SMS Pharmaceuticals Limited

Lakshmi-Narayana Tammineedi

Chief Financial Officer

Place: Hyderabad

Date: 22.05.2026

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Details as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 January 30, 2026

Annexure-I

Appointment of M/s.Annapragada & Co., (Formerly known as M/s.Harshitha Annapragada &Co.,) as Cost Auditors of the Company

Sr. No.	Particulars	Details
1.	Reason for change viz. appointment, re-appointment, resignation, removal, death or otherwise	M/s.Annapragada & Co., Cost Accountants (Formerly known as M/s.Harshitha Annapragada &Co.,) appointed as Cost auditors of the Company for the Financial Year 2026-27
2.	Date of appointment/re-appointment/cessation (as applicable) & Term of appointment/re-appointment	Friday, 22^{nd} May, 2026
For the Financial Year 2026-27
3.	Brief Profile (in case of appointment):	Harshitha Annapragada, a qualified Cost and Management Accountant, practicing as a Cost and Management Accountant from 2023 having (FRN: 006031) with base of operation at Hyderabad, Telangana.

As a Cost & Management Accountant by qualification, she is passionate about working in the field of Cost Audits, financial planning, forecasting, stock valuation, process optimization, and taxation, with more than 6 years of experience. Dedicated Cost Accountant with good experience with various industries like Chemicals, Steel, Telecommunications, Sugar, Constructions, Power, Pharma, Pharma, Port & Toll Services, providing support to various operating groups and manufacturing units. Good knowledge of relevant government regulations, internal controls, cost accounting methodologies, and cost modelling tools and other methods. |
| 4. | Disclosure of relationships between directors (in case of appointment of a director). | Not Applicable |

Hyderabad

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Annexure-II

Re-appointment of M/s. Adusumilli & Associates, Chartered Accountants, as Internal Auditors of the Company.

Sr. No.	Particulars	Details
1.	Reason for change viz:-appointment, re-appointment, resignation, removal, death or otherwise	M/s. Adusumilli & Associates, Chartered Accounts appointed as an Internal Auditor of the Company for the Financial Year 2026-27
2.	Date of appointment/re-appointment/cessation (as applicable) & Term of appointment/re-appointment	Friday, 22^{nd} May, 2026
For the Financial Year 2026-27
3.	Brief Profile (in case of appointment):	M/s. Adusumilli & Associates, Chartered Accounts (FRN: 006983S) are experienced professionals specializing in Company Audit, Tax Audit, Internal Audit, Bank Audit, and Taxation. Proficient in conducting comprehensive audits, ensuring compliance with regulatory standards and identifying areas for process enhancement. Possesses a strong understanding of tax laws and regulations, facilitating accurate tax planning and compliance. Dedicated to delivering thorough and effective audit services to optimize organizational performance and mitigate risks.
4.	Disclosure of relationships between directors (in case of appointment of a director).	NA

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