Vaishali Pharma Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Vaishali Pharma Limited is engaged in the trading and export of pharmaceutical products and operates in the healthcare and pharmaceutical sector. The Company deals in a wide range of products including Active Pharmaceutical Ingredients (APIs), pharmaceutical formulations, surgical products, herbal and nutraceutical products, veterinary products and other healthcare products, catering to both domestic and international markets. The pharmaceutical industry continues to remain an important and growing sector, supported by increasing healthcare awareness, demand for quality pharmaceutical products, expansion of healthcare infrastructure and growing opportunities in international markets. The Company continues to focus on strengthening its product portfolio, expanding its customer base and enhancing its presence in domestic as well as overseas markets.

The pharmaceutical sector continues to offer significant opportunities on account of increasing healthcare expenditure, growing demand for pharmaceutical and healthcare products and expansion of markets in developing economies. The Companys established relationships with customers and suppliers, diversified product portfolio and experience in the pharmaceutical trading and export business provide a foundation for pursuing these opportunities.

At the same time, the pharmaceutical industry is subject to various challenges, including regulatory requirements, competition, pricing pressures, foreign exchange fluctuations, changes in market conditions, supply chain disruptions and evolving customer requirements.

The Company continues to focus on maintaining product quality, timely delivery, customer satisfaction and efficient management of costs and working capital. These initiatives are expected to support the Companys business growth and strengthen its market position.

The Company is primarily engaged in the trading, including exports, of pharmaceutical and healthcare products. During the financial year 2025-26, the Company continued to undertake business activities across its various product categories, including pharmaceutical formulations, APIs, surgical products, herbal and nutraceutical products, veterinary products and other healthcare products.

The Companys performance during the year remained supported by its domestic and international customer base and continued demand for its products.

Revenue from operations for the financial year 2025-26 was Rs. 10,877.23 Lakhs as compared to Rs. 9,902.56 Lakhs in the previous financial year.

The Company remains focused on strengthening its business operations and expanding its presence in domestic as well as international markets. The Company intends to leverage its existing customer relationships, product portfolio and market experience to identify new business opportunities and enhance its revenues.

The Company is continuously working towards improving operational efficiencies and controlling costs across various areas of its business. The Company has been successfully executing orders from various customers and continues to enjoy the confidence of its customers through repeat business.

Going forward, the Company will continue to focus on expanding its customer base, improving margins, strengthening its product portfolio and exploring opportunities in existing as well as new markets. The Company believes that these initiatives will contribute towards sustainable growth and long-term value creation for its stakeholders.

The Company also remains committed to maintaining high standards of corporate governance, transparency and ethical conduct in all its business activities.

The Companys business is exposed to various risks inherent in the pharmaceutical trading and export industry. These include regulatory and compliance risks, product quality-related risks, market and competitive risks, foreign exchange fluctuations, supply chain disruptions, credit risks and changes in domestic and international market conditions.

The Company regularly monitors these risks and takes appropriate measures to mitigate their potential impact on its business operations. The management remains committed to ensuring compliance with applicable laws and regulations, maintaining quality standards, strengthening customer and supplier relationships and exercising prudent financial and operational management.

While it is not possible to eliminate all business risks, the Company continues to evaluate and monitor the risks associated with its operations and takes appropriate corrective and preventive measures to minimise their adverse impact.

The Company has an adequate internal control system commensurate with its size, scale and nature of business. The internal controls are designed to ensure proper recording of transactions, safeguarding of assets, operational efficiency and compliance with applicable laws and regulations.

The internal audit function is carried out by an independent firm of Chartered Accountants. Internal audits are conducted periodically to review the adequacy and effectiveness of the internal control systems.

The internal audit reports and recommendations are reviewed by the Audit Committee of the Board. The management takes appropriate measures, wherever necessary, based on the observations and recommendations arising from the internal audit process.

During the financial year under review, the Company recorded revenue from operations of Rs. 10,877.23 Lakhs, as compared to Rs. 9,902.56 Lakhs in the previous financial year.

The Company continues to focus on improving its operating performance, expanding its customer base, increasing business volumes and improving margins through effective cost management and operational efficiencies.

The management remains optimistic about the Companys future growth prospects and continues to undertake various initiatives aimed at strengthening the overall financial and operational performance of the Company.

The Company considers its human resources to be an important contributor to its continued growth and success. During the year under review, the Company maintained cordial and healthy relations with its employees.

The Company continues to provide a conducive working environment and encourages its employees to contribute effectively towards achieving the Companys business objectives.

The Directors place on record their appreciation for the dedicated efforts, commitment and valuable contribution of all employees during the financial year 2025-26.

The following significant changes in key financial ratios was recorded:

The Return on Net Worth in current year is 6.02% and in the previous year was 1.52%

During the period under review, the Return on Net Worth significantly increased to 6.02%, as compared to 1.52% in the previous year, primarily due to an increase in Profit After Tax.

Statements in the management discussion analysis describing the Companys objectives, projections, estimates, expectations are forward looking within the meaning of applicable security-laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Actual results may differ materially from these expressed in the statement. Important factors that could make difference to Companys operations include economic conditions, changes in the Government priorities/policies/regulations, tax laws and other statutes and other incidental factors affecting the business environment. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements on the basis of any subsequent developments, information or events.