Anglo-French Drugs Returns to Profitability in FY25 Amid Decline in Core Revenue and Rising Treasury Focus

Financial Performance (FY25 vs FY24):

Anglo-French Drugs posted a 18.2% YoY growth in total income to ₹118.0 Cr in FY25, up from ₹100 Cr in FY24, driven by a strong surge in other income (₹30 Cr vs ₹4.5 Cr), partially offset by a 7.8% decline in core revenue from operations to ₹88 Cr from ₹95 Cr. This indicates pressure on the core pharmaceutical business. Despite lower operational revenue, profit before tax (PBT) turned positive to ₹8 Cr from a loss of ₹12 Cr in FY24. The turnaround was largely due to investment gains and reduced raw material costs.

Operational Metrics (FY25 vs FY24):

Net profit margin improved to 6.1% from –12.4%, aided by cost control and higher other income. Total borrowings doubled to ₹19 Cr, primarily for working capital. A related-party loan of ₹7.52 Cr to Dormirbien Pvt Ltd raised governance concerns. Net cash from operations stood at ₹2 Cr, while cash and cash equivalents rose marginally. The company also invested ₹54 Cr and spent ₹9.0 Cr in capex for the acquisition of assets indicating a tilt toward treasury income.

Strategic Developments:

FY25 was a transformation year for AFDIL, marked by a turnaround in profitability after consecutive losses. However, core pharma revenues declined, reflecting underlying demand pressure and execution issues, especially in exports (which fell from ₹9 Cr to ₹0.93 Cr YoY). The company’s strategic buyback of shares (₹53 Cr payout) and lending to a related startup (DPL) raise capital allocation concerns. The shift towards high-yield investments helped earnings but raises questions on sustainability.

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