Wockhardt Limited: public-record watch file

Debt, cash and the balance sheet

Consolidated borrowings at 30 September 2026

Non-current borrowings ₹1,431 crore and current borrowings ₹719 crore: ₹2,150 crore in total, against ₹2,125 crore at 31 March 2026 (+₹25 crore). (30 Sep 2026)

Leases and the broader debt definition

Lease liabilities are ₹42 crore non-current and ₹46 crore current. Borrowings plus leases come to ₹2,238 crore (₹2,233 crore in March 2026). (30 Sep 2026)

Cash, bank balances and current investments

Cash and equivalents ₹330 crore, other bank balances ₹233 crore and current investments ₹117 crore — ₹680 crore together, versus ₹662 crore in March 2026 (₹217 / ₹33 / ₹412 crore). (30 Sep 2026)

Adjusted net debt

Borrowings excluding leases, less cash, other bank balances and current investments: 2,150 − 330 − 233 − 117 = ₹1,470 crore. Audited adjusted net debt was ₹1,463 crore for FY26 and ₹1,246 crore for FY25. (30 Sep 2026)

Total liabilities and equity

Total liabilities ₹3,402 crore and total equity ₹5,500 crore on assets of ₹8,902 crore (March 2026: ₹3,334 crore and ₹5,281 crore). (30 Sep 2026)

Standalone versus consolidated debt

Standalone borrowings are ₹1,804 crore (₹1,177 crore non-current, ₹627 crore current); ₹1,992 crore including standalone leases of ₹136 crore and ₹52 crore. (30 Sep 2026)

Borrowing trajectory FY2025 to FY2026

Consolidated borrowings rose from ₹1,859 crore to ₹2,125 crore (+₹266 crore); adjusted net debt rose from ₹1,246 crore to ₹1,463 crore (+₹217 crore). (31 Mar 2025 – 31 Mar 2026)

FY2026 operating cash flow and investment

About ₹390 crore of operating cash inflow, ₹136 crore spent on property, plant and projects and ₹228 crore on development and acquired intangibles, leaving roughly ₹26 crore before other flows. (FY2025-26)

Intangibles under development and goodwill

Intangible assets under development of about ₹1,708 crore (FY26) and ₹1,743 crore (September 2026); goodwill ₹1,028 crore and ₹1,040 crore. (31 Mar 2026 / 30 Sep 2026)

Low-utilisation manufacturing assets

Facilities with net book value of about ₹312 crore and construction work-in-progress of ₹395 crore are described as having low asset utilisation. (31 Mar 2026)

Development spending capitalised

About ₹206 crore of new-drug development spending was capitalised into intangible assets under development in FY26. (FY2025-26)

Promoter financing and related parties

Loans from related parties

About ₹958 crore of closing related-party loans (related-party note) and ₹957 crore of loans from related parties (liquidity note). The difference reflects rounding and caption scope. (31 Mar 2026)

₹748 crore repayable by June 2027

About ₹748 crore of related-party borrowings are repayable by 20 June 2027, with potential renewal subject to the company's assessment. (31 Mar 2026)

Interest on related-party loans

About ₹78 crore of interest on related-party loans in FY26, at rates described in a range of roughly 5.92% to 12.3%. (FY2025-26)

Related-party loan repayments

About ₹365 crore of related-party loan repayments were recorded in FY26. (FY2025-26)

Connected entities

Parties with control or significant-influence links include Khorakiwala Holdings and Investments, Palanpur Holdings, trustee entities and Carol Info Services. About ₹92 crore is attributed to lease accounting with Carol Info Services under Ind AS 116. (FY2025-26)

2023 shareholder vote on promoter borrowing

Shareholders reportedly rejected authority for promoter-linked borrowing of up to ₹1,600 crore, with about 50.13% voting against. (Aug 2023)

Promoter pledges fell

Pledged shares fell from about 18.8% of the promoter holding in March 2026 to about 9.97% (7,992,708 shares) in September; the promoter group held 49.32% of equity. (31 Mar – 30 Sep 2026)

September 2026 promoter-group acquisition

A promoter-group trustee company is reported to have acquired 390,399 shares (about ₹74 crore) on 2 September; quarterly promoter-group holdings rose by exactly 390,399 shares from June to September. (2 Sep 2026)

Wockhardt Bio AG, intellectual property and receivables

Sales to the Swiss subsidiary

Standalone sales to Wockhardt Bio AG of about ₹196 crore. (FY2025-26)

Intellectual property bought and sold

The parent acquired intellectual property from Wockhardt Bio AG for ₹278 crore and transferred or sold ₹42 crore of intellectual property to it; it also recorded ₹107 crore of R&D service income from the subsidiary. (FY2025-26)

Receivables concentration

Wockhardt Bio AG accounts for 69% of the parent's trade receivables, up from 60% in FY2025. (31 Mar 2026)

Overdue balances with the Swiss subsidiary

About ₹207 crore of overdue balances from Wockhardt Bio AG, including ₹41 crore of guarantee fees; separately about ₹53 crore of overseas overdue payables and ₹17 crore of advances beyond timing thresholds, which the company says it is regularising. (31 Mar 2026)

Receivables older than a year

About ₹323 crore of standalone trade receivables are older than 360 days (₹261 crore after expected-credit-loss adjustments). Third-party balances in that bucket carry about a 78% expected loss; related-party balances are not provided for because management expects recovery. (31 Mar 2026)

Audit, internal controls and disclosures

Audit-trail control exception

The auditor reported that audit-trail functions were disabled, or database-level logging was not enabled, for certain accounting systems, including consolidated reporting and direct database changes at specified Indian entities. (FY2025-26)

Book versus bank-reported receivables

Trade receivables of ₹846 crore in the books against ₹820 crore submitted to a consortium bank — a ₹26 crore difference the company attributes to year-end reclassifications. (31 Mar 2026)

Seven subsidiaries on unaudited figures

Seven subsidiaries (assets about ₹129 crore, revenue ₹21 crore, profit about ₹3 crore) were consolidated on unaudited management information; the auditor said they were not material. (FY2025-26)

Land still in the founder's name

Freehold land with a book value of about ₹0.31 crore remains in the name of the founder-promoter. (FY2025-26)

September results were only reviewed

The September 2026 interim results carry a limited-review conclusion, not a full audit opinion. (2 Nov 2026)

Workforce disclosures need clarification

Total permanent-employee turnover is reported as 61.32% while the male (27.17%) and female (34.15%) columns sum to that figure; worker turnover rose to about 22.03% from 13.07%. The vigil mechanism reported zero complaints; the 2024 policy routes pay and promotion grievances outside it. (FY2025-26)

Tax, customs and regulatory demands

Disputed demands of about ₹643 crore

About ₹345 crore of income-tax demands, ₹136 crore of NPPA pricing demands, ₹117 crore of sales tax/GST and ₹45 crore of central excise. (31 Mar 2026)

August 2026 customs adjudication

An export-classification order imposed a ₹5 crore penalty and a ₹10 crore redemption fine on the company, plus a ₹1 crore penalty on an individual. The company said it would appeal. (21–25 Aug 2026)

Earlier customs and classification disputes

A 2018-19 Divalproex Sodium penalty of ₹75 lakh was reduced to ₹25 lakh on appeal; separate notices about dextromethorphan classification and export incentives involved about ₹9.47 crore. (2018–2024)

Medical-education grant tax case

Tax authorities alleged grant-funded doctor travel and hospitality supported prescriptions (about ₹1.7568 crore challenged in an earlier assessment). The tribunal quashed the assessments on procedural grounds. (10 Nov 2025)

Settlements and exceptional items

A US$36 million (plus interest) Texas Medicaid price-reporting settlement was fully paid by FY2025; a 2023 Namenda IR antitrust settlement covered generic defendants (about US$2.038 million in aggregate); a Dr Reddy's dispute settlement produced a ₹35 crore exceptional gain; and about ₹110 crore of net exceptional charges related to the US Chapter 7 deconsolidation. (2022–2026)

US subsidiaries and litigation

US subsidiaries in Chapter 7

Wockhardt USA LLC (case 25-17287) and Morton Grove Pharmaceuticals (case 25-17288) filed Chapter 7 in the District of New Jersey; the company described this as an exit from loss-making US generics. A trustee settlement involving affiliates is referenced in the dockets. (11 Jul 2025)

Supplier insolvency petition dismissed

A roughly ₹20.25 crore insolvency petition by a supplier was dismissed by the NCLT because of a pre-existing contractual dispute. (1 Aug 2024)

US generic-drug price-fixing litigation

Wockhardt-affiliated US entities appear among defendants in generic-drug price-fixing litigation. (Ongoing)

Medicine regulators and product quality

2017 FDA warning letter

An FDA letter to Morton Grove referenced seven Wockhardt-associated facilities then out of CGMP compliance and described recurring record-integrity and quality-control concerns, including inadequate out-of-specification investigations. (17 Feb 2017)

2013–2017 site findings

FDA records describe manipulated or deleted test and production records, document-retention problems and sterilisation deficiencies at named sites including Waluj, Chikalthana and Ankleshwar. (2013–2017)

UK recalls

Class 2 recall of WockAIR 160/4.5 inhalation powder (batch NV6057) for a possible dose-delivery defect; Class 3 recall of Tamoxifen 20mg (batch HZ10030) after a dissolution failure in stability testing, with no harm complaints reported at the time. (Dec 2024 / Jun 2025)

Indian state notices

Rajasthan notices on specified Glaritus insulin batches (including DW10202 and DW10203) with an instruction to halt sale of unsold product; Maharashtra FDA show-cause notices on GMP and record-keeping; and historical complaints about specific products. (2024)

Current regulatory status is mixed

Historical FDA import alerts and warnings sit alongside 2026 MHRA GMP certificates for particular facilities. (2013–2026)

Share-price surges, bulk deals and the SEBI record

May 2026: results, then a 20% two-day rise

Q4 FY26 results on 4 May showed revenue of ₹965 crore, EBITDA ₹196 crore and PAT ₹164 crore. The close went from ₹1,425.00 (4 May) to ₹1,537.00 and ₹1,716.90 — +20.48% in two sessions — on 16.50m and 22.99m shares, against a pre-event average of about 0.47m. (4–6 May 2026)

6 May 2026 two-sided bulk deal

NK Securities Research bought and sold 1,009,622 shares each way (average ₹1,720.00 and ₹1,720.71); the same firm was two-sided in Tejas Networks and ideaForge that day. (6 May 2026)

Zaynich approval and the 29 May rally

Indian authorisation for Zaynich was announced on 28 May (09:16 IST); the stock closed up 14.70% at ₹2,031.40 on 29 May on 13.17m shares. The FDA approved NDA 220787 for Zaynich on 29 May 2026. A CDSCO expert committee had recommended approval publicly on 10 March. (28–29 May 2026)

September 2026 rise

After the 2 September promoter-group acquisition report, the stock rose 7.08% to ₹2,088.70 on 4 September (3.56m shares) and 5.71% to ₹2,208.00 on 7 September (4.32m shares). A long-term surveillance (ASM) stage reportedly ran from 2 June to 4 September 2026. (2–7 Sep 2026)

16 November 2023 session

The stock closed up 14.19% at ₹320.65 on 34.80m shares; four firms disclosed two-sided bulk deals totalling 4,897,122 shares bought and 4,946,845 sold. A BSE short-term ASM stage began the next day. (16 Nov 2023)

2023 SEBI settlement over 2013 FDA disclosure

SEBI examined the timing of disclosure of a March 2013 FDA Form 483. The company (₹36,70,875) and Habil, Murtaza and Huzaifa Khorakiwala (₹13,32,500 each) settled for ₹76,68,375 in total, without admitting or denying the findings. SEBI's order recites a 2012-13 rise from ₹273.25 to ₹2,065. (22 May 2023)

Other SEBI matters ended without adverse findings

Self-trade proceedings against Crosseas (June 2023) and JMP Securities (February 2013) ended without adverse findings on intent; a 2023 insider-trading order against a former employee was quashed by the Securities Appellate Tribunal on 6 August 2025 on delay and fairness grounds. (2013–2025)

Workforce and courts

54-worker transfer ruling

The High Court held transfers of 54 permanent workers from Chikalthana to be an unfair labour practice in the context of union activity and set them aside. The company appealed; a Supreme Court proceeding was listed in May 2026. (1 Jul 2024)

2019 interim wage deposit

A proposed wage deposit for a group of 14 workers was recorded in an earlier labour dispute. (15 Apr 2019)

Evidence that cuts the other way

Rating upgrade

ICRA upgraded the long-term rating to [ICRA]A- (Stable), citing improving FY26 profitability and promoter support (about ₹950 crore of promoter loans), while flagging contingent claims and research outcomes to monitor. (21 May 2026)

Revenue growth in Q2 FY27

Revenue from operations of ₹969 crore against ₹782 crore a year earlier; profit after tax ₹73 crore against ₹82 crore; first-half revenue ₹1,898 crore. (Quarter to 30 Sep 2026)

QIP money used as stated

The monitoring agency reported no material deviation in the use of the ₹1,000 crore QIP; about ₹893.32 crore had been utilised. (2 Nov 2026)

Zaynich approvals

The FDA approved NDA 220787 for Zaynich for its authorised adult indication; Indian authorisation was announced the day before. (May 2026)