Aptus Pharma's record shows four years of rising profit alongside four years of negative operating cash flow, a gap the auditors have not flagged in any of their clean opinions. The company's growth is funded by receivables that take longer to collect, and its borrowings carry unusual related-party features, including promoter co-borrowing and no interest terms.
Key findings
- Operating cash flow has been negative every year for four years while profit grew
Major- Cumulative operating cash flow was ₹-11 crore against cumulative PAT of ₹9 crore over FY23-FY26, a CFO/PAT ratio of -1.27x. In FY26 alone, operating cash flow was ₹-6.86 crore against PAT of ₹4.62 crore. CARE Ratings described liquidity as "Stretched" with negative cash flow from operations. - Revenue nearly doubled in FY26 while cash from operations stayed negative and receivables collection slowed
Major- Revenue grew from ₹13.90 crore in FY23 to ₹46.57 crore in FY26, while cash flow from operations was negative in every year, ending at ₹-6.86 crore in FY26. CARE Ratings reported collection days rose from 66 in FY25 to 94 in FY26, and the operating cycle lengthened from 148 to 163 days. Top 5 contract manufacturers contributed \~78% of total purchases in FY25, up from 74.61% in FY24. - Promoter and director co-borrowings on four company loans, with no interest or repayment terms, sit alongside a promoter disposal
Major- Long-term related-party borrowings as of FY2025-26 have no repayment terms, are payable after 12 months, and carry no interest. The MD, two directors, the CFO, and two promoters are co-borrowers on loans from Cholamandalam, Godrej Finance, L&T Finance, and UGRO Capital. On 11 May 2026, a promoter insider disposal of ₹4.34 crore was recorded. - Promoter remuneration rose 171.53% while employee salaries rose 1.07%, and promoter-group share transfers moved 0.26% blocks among seven entities in one day
Major- In FY2025-26, managerial remuneration rose 171.53% against a 1.07% average rise in employee salaries. On 11 May 2026, five promoter-group individuals each acquired 18,000 shares (0.26%) via off-market inter-se transfers, and the promoter MD acquired 10,000 shares (0.15%). The AGM notice dated 21 August 2026 proposes preferential allotment of 99,270 shares to eight promoter-group individuals, reducing promoter shareholding from 72.89% to 67.18%. - Reported borrowings exclude promoter-guaranteed, asset-secured cash credit facilities repayable on demand
Major- Cash credit facilities from ICICI Bank are repayable on demand, secured by hypothecation of inventories and trade receivables, with a lien over fixed deposits and personal guarantees of promoters. Fixed deposits of ₹5.39 crore include ₹1.14 lakhs pledged as security against this facility. - Reported profit rests on restated comparatives and actuarial assumptions, while cash flow has been negative every year despite rising PAT
Major- The company converted from private to public on 12 December 2024, and FY2025-26 previous-year figures were taken from Restated Financial statements submitted with BSE. The gratuity provision uses a discount rate of 7.15% and a salary growth rate of 8.00%. Cumulative CFO/(PAT−other income) was -1.28x over FY23-FY26, with PAT rising from ₹0.19 crore to ₹4.62 crore. - Statutory auditor issued clean opinion for FY2026, while secretarial auditor flagged a delayed filing
Major- The Statutory Auditors' Report for FY ended 31 March 2026 contains no qualification, reservation, or adverse remark, and determined no Key Audit Matters were required. The Secretarial Auditor reported that an e-Form MGT-14 for a Board Resolution dated 26 May 2025 was filed late, on 8 July 2026, with additional fees. No fraud was reported under Section 143(12) during FY 2025-26. - BSE fined the company ₹5,000 plus GST for an alleged late disclosure; the company disputes applicability and seeks a refund
Minor- BSE levied a fine of ₹5,000 plus GST on 16 December 2025 for an alleged delayed submission under Regulation 23(9) of SEBI (LODR). The company contends the regulation was not applicable, submitted a timely clarification, and its representation for waiver and refund was pending as of the FY2025-26 Annual Report date.
What to watch
- BSE fine representation. Outcome of the company's request for waiver and refund of the ₹5,000 plus GST, pending as of the FY2025-26 Annual Report date.
- Preferential allotment. 99,270 shares to promoter-group allottees, subject to shareholder approval at the AGM noticed for 21 August 2026.
- Director re-appointment. Mr. Chetan Shantilal Lalseta, retiring by rotation, to be voted on at the AGM noticed for 21 August 2026.
- Delayed MGT-14 filing. The late filing on 8 July 2026 may attract regulatory scrutiny from RoC.
- FY2026-27 Annual Report. Whether related-party loan terms are specified, co-borrower arrangements continue, and CFO remains negative against rising revenue.
Bottom line: This is a growth story whose reported profits have not produced a rupee of operating cash in four years, with receivables collection slowing as revenue accelerates. The risk character is one of earnings quality and related-party financing: watch whether the cash flow gap narrows, whether the related-party loans get interest and repayment terms, and how the preferential allotment and BSE representation resolve.