IGC · IGC Pharma, Inc.

IGC Pharma reported Q1 FY2026 revenue of $317 thousand, up 16.5% from $272 thousand in the prior-year quarter. This growth occurred as the Company maintained Life Sciences white-label sales while prioritizing clinical development, particularly the CALMA Phase 2 trial for IGC-AD1 in Alzheimer's disease. However, gross profit fell sharply to $55 thousand from $163 thousand YoY, with gross margins contracting to 17.4%. Management notes this reflects a strategic transition to third-party manufacturers, which may temporarily reduce margins but is expected to deliver long-term operational efficiencies and improved financial flexibility by reducing fixed manufacturing overheads and enhancing scalability.

Operating income widened slightly to a loss of $2.458 million from $2.396 million YoY, resulting in an operating margin of -775%. This reflects the period's investment focus, consistent with programs designed to expand the long-term development portfolio through disciplined clinical execution and capital efficiency. Net income was a loss of $2.402 million, marginally deeper than the prior $2.378 million loss, yielding diluted EPS of -$0.02. These results underscore the Company's commitment to advancing its pipeline amid revenue from commercial operations.

Cash flow from operations improved meaningfully to a use of $1.223 million from $1.752 million YoY, aided by tighter working capital management. Capital expenditures dropped to just $1 thousand from $38 thousand, yielding free cash flow of -$1.224 million. The moderation in cash burn supports ongoing operations, with equity transactions and a credit facility minimizing liquidity requirements. Management highlights that these sources ensure the ability to sustain operations while pursuing research and development initiatives.