VIVIMEDLAB - Vivimed Labs.
📢 Recent Corporate Announcements
Vivimed Labs Limited has formally filed an application for the initiation of a Pre-packaged Insolvency Resolution Process (PPIRP) under Section 54A of the IBC Act. The application was submitted to the NCLT Bengaluru Bench on February 12, 2026, following a massive debt default. As of January 31, 2026, the company reported a total default amount of ₹512.53 crores. This legal step indicates severe financial distress and a formal attempt to restructure its liabilities through the insolvency framework.
- Filed for Pre-pack Insolvency Resolution Process (PPIRP) with NCLT Bengaluru on February 12, 2026.
- Total default amount stands at ₹512,53,06,756 (approximately ₹512.53 crores) as of January 31, 2026.
- The application was filed under Section 54A of the Insolvency and Bankruptcy Code (IBC) Act.
- This follows previous financial distress intimations dated November 13, 2025, and January 10, 2025.
Vivimed Labs has obtained an interim stay from the Telangana High Court against all further proceedings following a CBI search and seizure conducted on January 20, 2026. The legal action was triggered by State Bank of India (SBI) classifying the company's account as 'fraud', a move the court noted was already suspended in a previous writ petition. The court has restrained the CBI from taking any coercive steps against the company or its directors until further orders. While the stay provides temporary relief, the underlying fraud allegations by a major lender remain a significant risk factor.
- Telangana High Court granted interim stay on February 6, 2026, against CBI search and seizure actions.
- The CBI raid on January 20, 2026, was based on a complaint by State Bank of India (SBI) regarding 'fraud' classification.
- Court noted that the 'fraud' classification was already suspended in a prior legal proceeding (W.P.No.24697 of 2025).
- The High Court has scheduled the next hearing for the matter on March 6, 2026.
Vivimed Labs Limited has announced the resignation of its Chief Financial Officer, Mr. Phaninder Nath P S, effective from the close of business hours on February 6, 2026. The resignation is attributed to personal health issues that have reportedly aggravated over the last few weeks. Consequently, he will also cease to be a Key Managerial Personnel (KMP) and Senior Management Personnel (SMP) of the company. The company will now need to initiate the process of appointing a successor to maintain financial leadership and oversight.
- CFO Phaninder Nath P S resigned effective February 6, 2026
- Resignation is due to personal health issues aggravating over recent weeks
- Cessation of role as Key Managerial Personnel (KMP) and Senior Management Personnel (SMP)
- The company must now identify and appoint a new CFO to ensure financial continuity
Vivimed Labs' Chief Financial Officer and Company Secretary have received a formal notice from the CBI's Banking Securities Fraud Branch following a complaint by State Bank of India (SBI). The investigation pertains to alleged financial irregularities within the company. This follows a prior development where Rare Asset Reconstruction Ltd (Rare ARC) acquired the company's financial assets and debt from SBI in October 2025. The company remains liable to Rare ARC for all outstanding dues, interest, and contractual charges.
- CBI Banking Securities Fraud Branch issued notice to CFO and CS on January 27, 2026.
- Investigation initiated based on a complaint by State Bank of India regarding financial irregularities.
- Rare Asset Reconstruction Ltd acquired SBI's financial assets in the company as of October 25, 2025.
- Rare ARC is now the primary entity entitled to recover total dues and interest from Vivimed Labs.
- The notice was officially communicated to the company via email on January 29, 2026.
Vivimed Labs Limited has filed a status report regarding the re-lodgement of transfer requests for physical shares as mandated by a SEBI circular dated July 2, 2025. The report, provided by the company's Registrar and Share Transfer Agent, Aarthi Consultants Pvt Ltd, covers the period from December 1, 2025, to January 6, 2026. During this period, the company received zero requests for physical share transfers. This is a routine regulatory disclosure with no impact on the company's operational or financial performance.
- Zero (NIL) requests received for re-lodgement of physical share transfers during the reporting period.
- Report covers the status from December 1, 2025, to January 6, 2026.
- Compliance filing follows SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97.
- Aarthi Consultants Pvt Ltd confirmed no requests were processed, approved, or rejected during this window.
Vivimed Labs Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing, issued by Aarthi Consultants Private Limited, confirms that all security certificates received for dematerialization between October 1, 2025, and December 31, 2025, were processed within 15 days. The process involved the mutilation and cancellation of physical certificates and the substitution of the depository's name in the company's records. This is a standard procedural filing required for all listed entities in India.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation that dematerialization requests were processed within the mandated 15-day period.
- Registrar and Share Transfer Agent (RTA) involved is Aarthi Consultants Private Limited.
- Verification that dematerialized securities are listed on the BSE and NSE stock exchanges.
Vivimed Labs Limited has responded to a clarification request from the National Stock Exchange (NSE) regarding significant volatility in its share price. The company stated that there is no undisclosed price-sensitive information or pending announcements under Regulation 30 of SEBI LODR that would impact the stock. Management clarified that the recent price movement is purely market-driven and attributed to general market conditions. The company maintains that it is in compliance with all disclosure requirements.
- NSE issued a clarification request (Ref. No: NSE/CM/Surveillance/16292) on January 05, 2026.
- Company responded on January 06, 2026, denying any undisclosed material events.
- Management attributes recent price fluctuations to market-driven factors rather than internal developments.
- Vivimed Labs confirmed adherence to Regulation 30 of SEBI (LODR) Regulations, 2015.
Vivimed Labs Limited has informed the stock exchanges that its trading window will be closed starting January 1, 2026. This closure is in compliance with SEBI Insider Trading regulations for the upcoming financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are declared and made public. The company will announce the specific date for the board meeting to approve these results at a later time.
- Trading window closure effective from January 1, 2026
- Pertains to financial results for the quarter and nine months ended December 31, 2025
- Window to reopen 48 hours after the results are officially declared
- Board meeting date for result approval to be announced in due course
Vivimed Labs Limited held an Extraordinary General Meeting (EGM) on December 10, 2025, to seek approval for a Special Resolution to initiate a pre-packaged insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. The remote e-voting for this critical decision was conducted between December 7 and December 9, 2025. This move indicates significant financial distress and a formal attempt to restructure the company's debt and obligations. The final voting results, which will determine the company's legal path forward, are expected to be released shortly.
- Special Resolution proposed to initiate pre-packaged insolvency resolution process under the IBC, 2016.
- Extraordinary General Meeting (EGM) held on December 10, 2025, via Video Conferencing.
- Remote e-voting period conducted from December 7 (9:00 AM) to December 9 (5:00 PM), 2025.
- Management addressed shareholder queries regarding the insolvency application during the 30-minute meeting.
- Final voting results to be declared and submitted to stock exchanges following the Scrutinizer's report.
Financial Performance
Revenue Growth by Segment
Consolidated revenue declined by 24.15% YoY to INR 120.64 Cr in FY2025. Standalone revenue, primarily driven by domestic pharma and chemicals, fell 26.36% to INR 107.79 Cr. Historically, the API segment accounted for 50% of revenue, while Finished Dosage Formulations (FDF) contributed 38%.
Geographic Revenue Split
The company maintains a global footprint with 12 manufacturing facilities and 6 R&D centers across India, China, Europe, and the US. Historically, overseas operations in Spain and Mexico accounted for approximately 50% of overall revenue.
Profitability Margins
Net Profit Margin remained negative at -26.49% in FY2025, though it showed a slight improvement from -28.57% in FY2024. Standalone net margins were lower at -29.22% due to higher operational deleverage on the domestic manufacturing base.
EBITDA Margin
Consolidated EBITDA margin improved to -7.19% (INR -8.68 Cr) in FY2025 from -14.74% (INR -23.45 Cr) in FY2024. This improvement was driven by a reduction in operating losses despite the 24.15% drop in total income.
Capital Expenditure
Planned capital expenditure is not disclosed for the upcoming period; however, the company recorded depreciation and amortization of INR 20.22 Cr in FY2025, reflecting a significant historical investment in its 12 global manufacturing units.
Credit Rating & Borrowing
The company is rated 'CARE D; ISSUER NOT COOPERATING', indicating a 100% default status on its bank facilities. Total rated debt stands at INR 376.43 Cr, comprising INR 266.93 Cr in long-term and INR 109.50 Cr in short-term facilities.
Operational Drivers
Raw Materials
Key raw materials include chemical intermediates for API synthesis and specialty chemicals such as photochromic dyes and anti-microbials, which collectively represent the bulk of the direct manufacturing cost.
Import Sources
Raw materials are sourced globally to support facilities in India, China, Europe, and the US. Specific sourcing countries for FY2025 are not disclosed in available documents.
Capacity Expansion
Current infrastructure includes 12 manufacturing facilities and 6 R&D centers. No specific expansion plans were detailed for FY2026 due to current liquidity constraints and debt default status.
Raw Material Costs
Raw material costs are a primary driver of the negative EBITDA; however, specific cost as a percentage of revenue for FY2025 was not explicitly broken down in the summary financials.
Manufacturing Efficiency
Manufacturing efficiency is severely impacted by cash flow mismatches, leading to ongoing delays in debt servicing and likely underutilization of the 12 global facilities.
Strategic Growth
Growth Strategy
The company aims to leverage the growing global demand for generics and opportunities arising from patent expiries in developed markets. The strategy involves utilizing USFDA-approved units in Spain and Mexico to supply high-value APIs and formulations to marquee global clients.
Products & Services
Active Pharmaceutical Ingredients (APIs), Finished Dosage Formulations (FDF), Hair Dyes, Photochromic Dyes, Anti-Microbials, and Imaging Chemicals.
Brand Portfolio
Vivimed, Uquifa (Spain), Soneas (Hungary).
Market Expansion
The company targets developed markets through its global support offices in India, China, Europe, and the US, focusing on generic drug opportunities.
Market Share & Ranking
Vivimed is a world leader in the development of innovative photochromic dyes.
Strategic Alliances
Maintains contract manufacturing relationships with marquee clients including Novartis, Glenmark, Lupin, GSK, Dr. Reddy’s, Cipla, Abbott, and Merck Serono.
External Factors
Industry Trends
The pharmaceutical industry is seeing increased spending on medicines, expected to reach $1.4 Trillion globally, with a shift toward branded medicines in developed markets and high-volume generics in emerging markets.
Competitive Landscape
Competes with global API and specialty chemical manufacturers; competitive positioning is currently weakened by a 'CARE D' credit rating and issuer non-cooperation.
Competitive Moat
The company's moat is built on its 12 global manufacturing facilities and 6 R&D centers, particularly its USFDA-approved units and patented photochromic dye technology, though sustainability is threatened by current liquidity defaults.
Macro Economic Sensitivity
Highly sensitive to global healthcare spending and regulatory changes in the US and Europe, which are primary markets for its USFDA-approved facilities.
Consumer Behavior
Increased global demand for affordable healthcare is driving the shift toward generic formulations, which aligns with Vivimed's FDF business segment.
Geopolitical Risks
Operations in Spain, Mexico, Hungary, China, and the USA expose the company to trade barriers and regulatory shifts in multiple jurisdictions.
Regulatory & Governance
Industry Regulations
Operations are subject to stringent USFDA standards for Spanish and Mexican plants, as well as local manufacturing standards in India and China. Compliance is critical for maintaining the 88% revenue contribution from the Pharma segment.
Taxation Policy Impact
The company recorded a tax benefit of INR 0.11 Cr on a consolidated basis in FY2025 due to reported losses.
Legal Contingencies
The company faces a significant audit qualification regarding the non-recognition of interest expense amounting to INR 57.44 Cr for FY2025, which materially misstates the reported net loss and total liabilities.
Risk Analysis
Key Uncertainties
The primary uncertainty is the company's ability to continue as a 'going concern' given the 'CARE D' rating and the fact that total liabilities (INR 956.00 Cr) exceed total assets (INR 920.83 Cr) on a consolidated basis.
Geographic Concentration Risk
Significant geographic concentration in India and Europe (Spain/Hungary), with international subsidiaries being critical for 50% of historical revenue.
Third Party Dependencies
High dependency on lenders for working capital; the 'Issuer Not Cooperating' status suggests a breakdown in relationship with credit providers.
Technology Obsolescence Risk
Risk is mitigated by 6 R&D centers and patented processes in the specialty chemicals division, particularly in photochromic dyes.
Credit & Counterparty Risk
Credit exposure is high; the company's own default status likely limits its ability to secure favorable credit terms from suppliers, further straining the 24.15% declining revenue base.