Corona Remedies’ record is one of strong operating cash generation and clean audit opinions, but the balance sheet tells a different story: a ₹143 Crore capital-work-in-progress pile now equals half of net fixed assets, and short-term borrowings make up 87% of total debt.
Key findings
- Operating cash flow is strong, but free cash is absorbed by a ₹143 Crore CWIP build-up
Minor- Cumulative operating cash flow of ₹679 Crores over FY23-FY26 comfortably exceeds cumulative profit after tax of ₹509 Crores, and FY26 cash conversion was 78% of EBITDA. Yet capital work in progress reached ₹143 Crores, 49% of net PP&E of ₹291 Crores, pulling FY26 free cash flow down to ₹55.89 Crores from ₹99.47 Crores in FY25. - Promoter-chairman, 75, wins re-appointment and a ₹1 Crore commission despite 43-44% institutional dissent
Minor- Dr. Kirtikumar Mehta, who holds 20% of the company, was re-appointed as Chairman for five years from April 2027 and granted a ₹1 Crore commission for FY27. At the AGM on July 09, 2026, public institutional shareholders voted 43.44% against his re-appointment and 43.67% against the commission, though both resolutions passed with over 91% overall support. - A ₹19.10 Crore labour-code charge and prior-year provision reversals reshape reported profit
Minor- The company booked a one-time exceptional charge of ₹19.10 Crores for new labour codes in FY26, while simultaneously reversing ₹0.42 Crores of prior-year finished-goods obsolescence provisions and ₹0.31 Crores of prior-year stock-in-trade provisions through the profit and loss account. Management presented an adjusted PAT of ₹199 Crores excluding the labour-code impact, against ₹149 Crores in FY25.
What to watch
- CWIP capitalisation or impairment. The ₹143 Crore CWIP balance, 49% of net PP&E, will either begin capitalisation or face impairment review in the annual report for the period ending March 2027.
- Chairman re-appointment. Dr. Kirtikumar Mehta’s five-year term as Chairman begins 1 April 2027 and runs to 31 March 2032.
Bottom line: This is a cash-generative business with a disclosed and audited record. The strain sits on the balance sheet: a large CWIP balance has yet to prove its earning power, and short-term borrowings make up 87% of total debt. Watch the next annual report for impairment signals on the brands and for the CWIP to either start earning or start raising questions.