Vivimed Labs FY26 Results: Net Loss Widens Amidst CIRP; Auditors Raise Concerns
Vivimed Labs reported a net loss of ₹1,716.11 crore for FY26 (consolidated: ₹1,763.35 crore). The company is under Corporate Insolvency Resolution Process (CIRP) since April 15, 2026. Auditors raised qualifications regarding unrecorded interest expenses, unconfirmed borrowings, and incomplete disclosures. Inventory write-downs and unbilled revenue were also reported.
The company is undergoing CIRP, which fundamentally impacts its operations and future. The significant increase in losses and the auditor's qualified opinion, including issues with unrecorded interest and unconfirmed borrowings, suggest a high level of financial distress and uncertainty.
The company reported a significant widening of net losses for both standalone and consolidated results, coupled with the ongoing Corporate Insolvency Resolution Process (CIRP). The auditors' report contains multiple qualifications, raising concerns about financial reporting and the company's going concern status.
Vivimed Labs Limited announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a net loss of ₹1,716.11 crore for the year ended March 31, 2026, a significant increase from the loss of ₹314.96 crore in the previous year. On a consolidated basis, the net loss for the year was ₹1,763.35 crore, compared to ₹318.48 crore in FY25.
The company is currently undergoing Corporate Insolvency Resolution Process (CIRP) initiated on April 15, 2026, with the powers of the Board of Directors suspended and management control vested with the Interim Resolution Professional (IRP). The audited financial statements have been prepared on a going concern basis, with management citing ongoing business plans, promoter support, and expected operational improvements.
The Independent Auditor's Report highlighted several qualifications. Notably, the company failed to recognize approximately ₹625.72 million in interest expense on an accrual basis for borrowings assigned to Rare Asset Reconstruction Company (ARC), leading to an understatement of reported loss and liability. The auditors also expressed inability to obtain direct external confirmations for borrowings and faced challenges in reconciling balances with creditors, debtors, and other financial liabilities. Furthermore, disclosures related to MSME vendors and interest payable on delayed payments were not made pending vendor confirmations.
Significant write-downs were made for inventory amounting to ₹233.08 million due to lack of working capital and marketing disruptions. Deferred revenue expenditure of ₹209.80 million out of ₹343.78 million could not be billed. The company has entered into a One-Time Settlement (OTS) with Bank of Bahrain and Kuwait for ₹40.05 million against total dues of ₹48.95 million, with an upfront payment of ₹10 million made.
Concerns regarding the company's ability to continue as a going concern were noted due to cash losses, defaults in borrowing repayments, and adverse financial ratios. However, management's assessment, based on future business prospects and debt restructuring plans, supports the going concern basis.
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