💰 Financial Performance

Revenue Growth by Segment

Total income from operations for the half-year ended September 30, 2025, reached INR 3,341.76 lakhs, representing a 13.34% growth compared to INR 2,948.39 lakhs in the same period of the previous year. Segment-specific growth percentages are not disclosed in the available documents.

Profitability Margins

Net Profit Margin for H1 FY26 (period ended September 30, 2025) stood at 6.00%, a significant improvement from the 0.76% margin recorded in H1 FY25. This margin expansion was driven by a sharp increase in consolidated profit after tax to INR 200.56 lakhs from INR 22.57 lakhs YoY.

EBITDA Margin

Consolidated Profit before Tax for H1 FY26 was INR 262.35 lakhs (7.85% of revenue), compared to INR 77.41 lakhs (2.62% of revenue) in H1 FY25, indicating a 239% increase in core operational profitability.

⚙️ Operational Drivers

Raw Material Costs

Total expenses for H1 FY26 were INR 3,079.41 lakhs, representing 92.15% of revenue. This is a decrease from H1 FY25 where expenses represented 97.38% of revenue, suggesting improved procurement or cost management strategies.

📈 Strategic Growth

Growth Strategy

The company is leveraging its 51.49% stake in its Indian subsidiary, Hetvi Lifesciences Private Limited, to expand its market presence. Growth is further supported by the industry's rising healthcare needs and increased chronic disease prevalence, which the company aims to address through its lifescience product portfolio.

Products & Services

Lifescience and pharmaceutical products, including medicines and healthcare solutions.

Brand Portfolio

Sunrest

Market Expansion

The company is focusing on the lifescience sector, targeting growth driven by aging populations and heightened emphasis on affordable healthcare access.

Strategic Alliances

The company operates with an Indian subsidiary, Hetvi Lifesciences Private Limited, in which it holds a 51.49% controlling interest.

🌍 External Factors

Industry Trends

The industry is evolving through technological innovation and regulatory shifts. Future growth is expected to be driven by a 15-20% increase in chronic disease prevalence and a global shift toward affordable healthcare access, positioning Sunrest to capture demand in the lifescience segment.

Competitive Landscape

The industry is characterized by strong fundamentals and shifting market dynamics, requiring companies to innovate and maintain high standards of regulatory compliance to remain competitive.

Competitive Moat

The company's moat is built on its established presence in the lifescience sector and its subsidiary network. Sustainability depends on maintaining rigorous internal financial controls and adapting to shifting market dynamics and regulatory standards.

Macro Economic Sensitivity

The company is sensitive to rising healthcare needs and aging populations, which serve as fundamental drivers for the pharmaceutical industry's growth.

Consumer Behavior

Increased emphasis on affordable healthcare and rising demand for treatments for chronic diseases are primary consumer trends affecting demand for Sunrest's products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically Regulation 33 regarding the disclosure of financial results and internal financial controls.

Taxation Policy Impact

Total tax expense for H1 FY26 was INR 61.27 lakhs, representing an effective tax rate of approximately 23.35% on a consolidated profit before tax of INR 262.35 lakhs.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty involves internal control weaknesses, as evidenced by the clerical error in inventory valuation that required a significant financial restatement (INR 100 lakh adjustment).

Third Party Dependencies

The company relies on other auditors for the audit of its subsidiary, Hetvi Lifesciences Private Limited, which contributes to the consolidated financial results.