Citi Pharma Limited Records 6.5% Sales Growth in FY2026 as Profit Declines

Citi Pharma Limited has reported an increase in annual sales for the financial year ended June 30, 2026, while its profitability declined compared with the previous year. The company’s financial statements show continued revenue growth, although higher costs and expenses affected its bottom line.

According to the company’s annual financial results, net sales increased to approximately Rs. 14.00 billion in FY2026, compared with Rs. 13.15 billion in FY2025, representing growth of around 6.5%.

Despite higher sales, profit after tax declined to Rs. 782.6 million from Rs. 892.0 million in the preceding financial year. Earnings per share (EPS) also decreased to Rs. 3.43 from Rs. 3.90, reflecting pressure on profitability.

Gross Profit Shows Improvement

Citi Pharma’s gross profit increased to approximately Rs. 2.45 billion during FY2026, compared with Rs. 2.02 billion in FY2025. This improvement indicates that the company generated higher gross earnings from its sales, even as operating costs and other expenses continued to influence its overall financial performance.

Administrative and general expenses rose to approximately Rs. 253.9 million from Rs. 222.1 million. Marketing and distribution expenses also increased to Rs. 270.3 million from Rs. 191.2 million.

As a result, operating profit reached approximately Rs. 1.93 billion, up from Rs. 1.60 billion in the previous year. However, higher financial charges and other expenses contributed to the decline in final earnings.

Financial Charges Remain a Key Factor

Financial charges increased to approximately Rs. 387.9 million in FY2026 from Rs. 329.7 million in FY2025. This increase added pressure to the company’s earnings despite the improvement in operating profit.

Profit before tax and final taxes declined to approximately Rs. 1.33 billion from Rs. 1.35 billion. Following income tax expenses of approximately Rs. 548.7 million, the company reported a net profit of Rs. 782.6 million.

The results highlight the importance of managing financing costs, distribution expenses and other operating expenditures as the company continues to expand its revenue base.

Asset Base and Borrowings

Citi Pharma’s standalone total assets stood at approximately Rs. 18.12 billion as of June 30, 2026, compared with Rs. 18.44 billion a year earlier.

The company’s current assets included inventory of approximately Rs. 3.64 billion, trade debts of Rs. 3.42 billion, and cash and bank balances of approximately Rs. 200.9 million. Meanwhile, short-term borrowings increased slightly to around Rs. 2.87 billion.

The financial statements also show long-term secured financing of approximately Rs. 57.2 million, alongside lease liabilities and other obligations. These figures make working-capital management and cash-flow generation important areas to monitor.

Cash Flow and Dividend Payments

The company’s standalone cash flow statement reported net cash generated from operating activities of approximately Rs. 174.9 million during FY2026, compared with a net operating cash outflow of around Rs. 320.7 million in FY2025.

Nevertheless, the company recorded a substantial net decrease in cash and cash equivalents during the year, reflecting outflows from investing and financing activities. Cash and cash equivalents at year-end stood at approximately Rs. 284.3 million in the standalone statements.

The statement of changes in equity also records a final dividend for FY2025 of 35% and a dividend payment of approximately Rs. 799.6 million. Dividend payments and investment spending are important considerations when assessing the company’s future liquidity.

Consolidated Results Reflect Similar Trends

The consolidated financial statements reported net sales of approximately Rs. 14.08 billion for FY2026, compared with Rs. 13.15 billion in FY2025. Consolidated profit for the year declined to approximately Rs. 790.3 million from Rs. 892.0 million.

Consolidated earnings per share decreased to Rs. 3.46 from Rs. 3.90. Total consolidated assets stood at approximately Rs. 18.26 billion at the end of June 2026.

These figures broadly reflect the trend in the standalone results: higher revenue and gross profit, but lower net earnings.

Outlook

Citi Pharma’s FY2026 results present a mixed financial picture. Revenue and gross profit increased, and operating profit improved, demonstrating continued business activity. However, lower net profit and earnings per share indicate that revenue growth has not translated into higher bottom-line earnings.

Going forward, the company’s financial performance will depend in part on its ability to control operating expenses, manage financing costs, maintain healthy cash flows and convert sales growth into sustainable profitability.

Investors will likely continue to monitor these factors alongside future revenue growth and the company’s working-capital requirements. The reported figures provide useful insight into the company’s financial position, but they should be considered alongside its full financial statements and future business developments.