Suven Life Sciences' Q4 net loss widens over 65 pc as revenue falls 39 pc

IANS May 13, 2025 253 views

Suven Life Sciences has reported a challenging financial quarter with a significant increase in net loss. The company's revenue declined sharply by 38.7%, contributing to the widening financial pressure. Despite the weak financial performance, the company's stock showed resilience, trading higher on both NSE and BSE. Suven remains focused on its core strategy of developing new chemical entities for central nervous system disorders.

"A strategic move to issue 6.4 crore fully convertible warrants worth Rs 858 crore" - Suven Life Sciences Regulatory Filing
Mumbai, May 13: Homegrown biopharma major Suven Life Sciences on Tuesday reported over 65 per cent increase in its net loss for the fourth quarter (Q4) of FY25, as a significant drop in revenue weighed heavily on its financial performance.

Key Points

1

Q4 net loss increases to Rs 43.9 crore from Rs 26.5 crore

2

Revenue drops 38.7% to Rs 1.5 crore

3

Total expenses rise 36.26% to Rs 46.6 crore

The company posted a consolidated net loss of Rs 43.9 crore in Q4, compared to a loss of Rs 26.5 crore in the same quarter last fiscal (Q4 FY24) -- reflecting a steep year-on-year (YoY) increase of nearly 65.66 per cent, according to its stock exchange filing.

This widening of losses came on the back of a sharp 38.7 per cent fall in revenue, which declined to Rs 1.5 crore in Q4 from Rs 2.4 crore a year ago.

The company also reported a wider EBITDA loss of Rs 43.8 crore for the quarter, compared to Rs 30.3 crore in Q4 of the previous fiscal.

Adding to the pressure, the total expenses rose to Rs 46.6 crore during the quarter, marking a 36.26 per cent increase from Rs 34.2 crore in the same period last financial year.

A major part of this rise came from higher employee benefits expenses, which stood at Rs 6.06 crore, up from Rs 3.46 crore last year.

In a strategic move, the company also announced that it will issue 6.4 crore fully convertible warrants on a preferential basis. These warrants are worth Rs 858 crore, as per the company’s regulatory filing.

Suven Life Sciences is a biopharmaceutical firm focused on discovering and developing new chemical entities for treating central nervous system (CNS) disorders.

The company also partners with other pharmaceutical and biotech firms to provide drug discovery and development support services.

Despite the weak financials, Suven Life Sciences' stock traded higher on the National Stock Exchange (NSE). Around 1:55 p.m., the company’s shares were up by Rs 10.93 or 7.14 per cent, trading at Rs 164.

On the Bombay Stock Exchange (BSE), the shares were trading at Rs 162.40, up by Rs 9.60 or 6.28 per cent.

Reader Comments

R
Rahul K.
Very concerning numbers. How can a company's stock rise when losses are widening so dramatically? This smells like speculative trading rather than fundamentals. Indian pharma sector needs more stability.
P
Priya M.
CNS drug research is capital intensive with long gestation periods. Maybe investors are betting on future potential? But the rising employee costs without revenue growth is worrying 🤔 Hope they have solid pipeline projects.
A
Ankit S.
Issuing 858cr warrants shows they need cash infusion badly. As shareholder, I want clearer communication about turnaround strategy. Why such massive employee cost jump when revenues falling? Not very transparent.
S
Shweta R.
Indian pharma innovation needs patience! 🇮🇳 Suven is working on complex CNS disorders - this isn't generic manufacturing. The stock rise might reflect confidence in their research capabilities despite current losses.
V
Vikram J.
Classic case of Indian market irrationality. Company burning cash, expenses up 36%, but stock jumps 7%? Either insiders know something we don't, or this is pure speculation. Be careful investors!
N
Neha T.
Maybe the warrant issue is for funding breakthrough research? CNS drugs can be game changers if successful. But management should hold townhall to explain roadmap clearly. Transparency = investor confidence!

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Suven Life Sciences Pharmaceutical Q4 Financial Results Biopharma Stock Market CNS Disorders