What Caused Sigachi Industries to Report a Loss in Q1 FY26?
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Synopsis
Sigachi Industries has faced a significant setback in Q1 FY26 with a net loss of Rs 100.97 crore following a tragic incident at its factory. This report delves into the financial implications and the company's commitment to safety and recovery.
Key Takeaways
- Sigachi Industries reported a net loss of Rs 100.97 crore in Q1 FY26.
- Revenue increased by 34% year-on-year to Rs 128.24 crore.
- The loss was significantly influenced by a factory explosion.
- Company leadership is focusing on safety and operational improvements.
- Shares fell 2.64% following the announcement.
Mumbai, July 25 (NationPress) Sigachi Industries has reported a net loss of Rs 100.97 crore for the first quarter of the current financial year (Q1 FY26), as disclosed in an exchange filing on Friday. The company had recorded a profit of Rs 16.17 crore in the previous quarter (Q4 FY25) and Rs 12.75 crore in the same quarter last year (Q1 FY25).
In contrast, the total revenue for the Hyderabad-based pharmaceutical firm surged by 34 per cent, reaching Rs 128.24 crore, an increase from Rs 95.7 crore during the same period last year. Revenue also saw a slight rise quarter-on-quarter from Rs 128.20 crore in Q4 FY25.
The gross profit increased by 14.67 per cent to Rs 54.7 crore, although the gross margin fell from 49.79 per cent to 42.64 per cent, as per the filing.
Additionally, EBITDA was reported at Rs 24.1 crore, with an EBITDA margin of 18.79 per cent.
On June 30, a devastating explosion occurred at Sigachi's factory in Pashamylaram, resulting in multiple fatalities and substantial damage to the facility.
This tragic event has led the company into losses during the April-June quarter.
"Q1 FY26 has been an emotionally and operationally challenging quarter for us. The tragic incident led to the loss of lives and injuries among our workforce, and we extend our deepest condolences to all affected," stated Sigachi Industries Limited MD & CEO, Amit Raj Sinha.
He added that the top priority was to support the families affected, ensure medical care, and fully cooperate with authorities.
The incident disrupted manufacturing operations, damaged plant infrastructure and inventory, and delayed shipments, all of which affected revenue and margins.
This has initiated a thorough review of the operational controls and risk governance at the company.
"Looking ahead, we are committed to a decisive reset, emphasizing safety, accelerating cost improvements, focusing on margin-led portfolios, and rebuilding with global standards, resilience, and transparency," Sinha remarked.
Meanwhile, the company's shares settled lower on Friday, closing at Rs 38.71, down 2.64 per cent.
Point of View
We recognize the gravity of the situation faced by Sigachi Industries. The tragic explosion that led to loss of lives is a stark reminder of the importance of safety in industrial operations. While the company's financial losses are concerning, their commitment to rebuilding and prioritizing safety is crucial for their future. We stand with those affected during this challenging time.
NationPress
26/07/2025
Frequently Asked Questions
What caused Sigachi Industries' loss in Q1 FY26?
The loss was primarily attributed to a tragic explosion at their factory, which disrupted operations and resulted in multiple fatalities.
How much was Sigachi's net loss in Q1 FY26?
Sigachi Industries reported a net loss of Rs 100.97 crore for the first quarter of FY26.
What was the revenue for Sigachi Industries in Q1 FY26?
The total revenue for Sigachi Industries increased by 34% to Rs 128.24 crore in Q1 FY26.
What steps is Sigachi Industries taking after the explosion?
The company is focusing on safety measures, supporting affected families, and reviewing operational controls.
How did the stock perform following the news?
Sigachi Industries' shares closed at Rs 38.71, down 2.64% on the day of the announcement.
