Omkar Pharmachem Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Statements in the Management Discussion & Analysis Report which seek to describe the Companys objectives, projections, estimates, expectations or predictions may be considered to be "forward-looking statements" and are stated as required by applicable laws and regulations. Actual results may differ materially from those expressed or implied. Many factors including global and domestic demand-supply conditions, prices, raw-materials availability, technological changes, changes in Government regulations, tax laws and other statutes may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook.

Industry structure and development:

The global Pharma industry has fared well amidst the past economic downturns. In light of todays volatile marketplace, which is faced with economic, political and social challenges, this industry is faced with reform-driven pricing pressures and increased demand for value in innovation. Significant global unmet needs, aided by favourable demographic trends, make it likely that this industry would enjoy long term growth. Driven by the recent wave of innovative therapies approved by regulators, reports suggest that the global drug spending could be in trillions in coming future.

Globally, spending on healthcare correlates well with general economic strength of a country. Given the high contribution of the USA, Russia, and Brazil in global growth of healthcare spending, coupled with pricing pressures in the United States and the unstable economic conditions in large emerging markets have led to a slowdown in the global marketplace. Strict measures taken by the governments with regards to health care budgets and/ or reductions in out- of-pocket expenditures in these countries have impacted the spending. Aging populations, rise of chronic diseases and the introduction of innovative and frequently expensive treatments (e.g., for cancer and Hepatitis C) are some of the main factors, which would continue to drive growth in health care spending.

However, many countries have taken steps to contain health care costs that includes price control, value-based pricing and reimbursement along with pro-generic and pro-biosimilar policies. Companies are responding to the current changing market dynamics and are trying to position themselves for continued growth through portfolio transformation, mergers and acquisitions (M&A), cost-cutting, sharpened focus on high-performing therapeutic areas (TAs) and on key geographic markets.

Opportunities, Threats, Risk and Concern:

The Company as being hit by financial crisis and due to lack of suitable business opportunities in the field of pharmaceuticals past few years, company was unable to carry on any such business activity. Any slowdown in the growth of Indian economy or any volatility in global market, could also adversely affect the business.

However, Company is exploring some new business opportunities to get itself back on track, keeping in mind the same, company had accorded boards approval as well as members approval for adding some new business activity in its main object and started working on these activities.

Outlook:

While the economic outlook still looks uncertain, some signs of revival are visible. With most market participant expecting the coming of decade to represent after subbed environment for both, financial return and transaction activity, the industrial growth is positive on years of double digit returns/ volume.

Adequacy of Internal Controls:

The Company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and that transaction are authorized, recorded and reported correctly. The internal control system is designed to ensure that the financial and other records are reliable, for preparing financial statements and other data, and for maintaining accountability of assets.

Segment wise Reporting:

The company is Operating in one segment only and therefore requirement of presentation of segment wise performance is not applicable to the company

Human Resource Development:

The company intends to give required training to its personnel to have personnel development of the employees contributing to the growth and development of the company, as and when required.

Discussion on financial performance with respect to operational performance:

The total revenue from operations of your Company for the year ended March 31, 2026 stood at Rs. 47.24 lacs as against Rs.54.22 Lacs for the year ended March 31, 2025. The Company has earned a profit (after tax) of Rs. 12.18 Lacs for the Year ended March 31, 2026 as compared to Profit (after tax) of Rs. 20.09 Lacs for the year ended March 31, 2025.

Details of significant changes in key financial ratios along with explanation:

In compliance with the requirement of the Listing Regulations, the key financial ratios of the Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as ‘significant changes), has been provided hereunder:

Sr. No. Particulars	2024-25	2025-26	Changes (%)	Explanation
1 Debtors Turnover	7.41	7.18	0.03%	NA
2 Inventory Turnover	0.00	0.00	0.00%	NA
3 Interest Coverage Ratio	16.79	78.52	367.66%	There is decrease in interest expense from Rs. 1.71 in F.Y. 2024-25 to Rs. 0.21 in F.Y. 2025-26 because of repayment of loan.
4 Current Ratio	1.56	5.96	282.05%	There is increase in current assets and reduction in current liabilities as compared to previous year and therefore there is change in ratio. The figure of current assets and current liabilities being low, minor changes has higher variance.
5 Debt Equity Ratio	0.01	0.00	100.00%	There is no borrowing as at 31st March, 2026 and so current years ratio is 0. So reduction of borrowing by small amount of Rs. 11.85 lakh shows higher change.
6 Operating Profit Margin	0.53	0.35	33.96%	There is substantial reduction in net profit as compared to reduction in revenue. This is because fixed expenses is on higher side.
7 Net profit Margin	0.37	0.26	29.73%	There is decrease in net profit (because sale is reduced and expenses are increased) and hence there is change in ratio. The figure of net sale being low, minor changes has higher variance.
8 Return on Net worth	0.02	0.01	50.00%	There is because there is reduction in revenue but no corresponding reduction in expenses, fixed expenses being on higher side.

 

	For and on behalf of the Board of Directors
	For Omkar Pharmachem Limited
	Sd/-	Sd/-
	(Bhawani S Goyal)	(Parminder Sharma)
	Managing Director	Director
	DIN-03255804	DIN-00176300
	Address:-	Address:-
	Ward No-03,	House No. 65, I Block,
	Nangal Chaudhry,	Near Gurudwara Kutia Sahib,
Date : 31st August, 2026	Mahendragarh,	B.R.S. Nagar
Place : Ahmedabad	Haryana-123023	Ludhiana-141012, Punjab.