Mangalam Drugs shares tumble 23% in two days after firm defaults on Rs 8-crore bank loans

The shares of Mangalam Drugs and Organics dropped more than 13 percent on November 20, extending losses to a whopping 23 percent in two days. This comes after the company announced that it has defaulted on two bank loans.

The shares hit a fresh 52-week low of Rs 47.27 apiece on Wednesday. This marks a 63 percent drop in less than a year from the stock's 52-week high of Rs 128.01 apiece, which it had hit in November last year.

The stock made some recovery by the end of the day, closing nearly 11 percent lower in the red at Rs 48.43 apiece on Wednesday. The company which had a market capitalisation of Rs 97 crore at the end of November 18, now has a market cap of Rs 77 crore at the end of November 20.

This implies that Rs 20 crore was wiped out of the company's market capitalisation after it announced that it has defaulted on bank loans worth Rs 8 crore.

Mangalam Drugs loan default:

In an exchange filing released on November 18, Mangalam Drugs and Organics said that it has defaulted on its loan obligations to Bank of Baroda and Bank of Maharashtra for a period exceeding 30 days.

The company has defaulted on a Rs 4.15-crore loan from the Bank of Maharashtra, which was scheduled to be cleared before October 17. It has also defaulted on a Rs 3.50-crore loan from Bank of Baroda scheduled to be cleared before October 20.

"Our business is mainly dependent on funding to formulators for treatment of T8, HIV, Malaria etc. from US Aid which is now dis-banned by US government and this has majorly affected our business. Presently only Global Fund is funding the treatments with a reduced budget. As the funding has slowed down the orders for treatment have also been dropped drastically," Mangalam Drugs said in its exchange filling.

Notably, US President Donald Trump slashed the country's foreign aid budget, and shuttered US AID earlier this year which supported health, education and development worldwide. Additionally, Global Fund was founded by Bill Gates.

"We have requested a restructuring of the loan with our bank and desired plan will be submitted to them by mid-December 2025. We are also making arrangements to pay the overdue amount as soon as possible,” it added.

Mangalam Drugs delays Q2 results:

Earlier on November 13, Mangalam Drugs clarified the reason why it has delayed the release of its Q2 FY26 results. “Due to unavoidable circumstances, at present Company has not yet finalized the Financials Results for the Quarter ended 30th September, 2025. In view of the facts, as explained above it is submitted that there shall be delay in submission of Un-Audited Financial Results for the Quarter ended 30th September, 2025 and the Company shall not be able to submit the same by 14th of November, 2025. However, it is further submitted that the Company shall make sincere efforts in completion of said Un-Audited results as soon as possible with minimum delay for the purpose of its Intimation to Stock Exchange," it said.

Mangalam Drugs share price:

Mangalam Drugs shares have dropped more than 20 percent in the past five days, and nearly 31 percent in the past one month. The stock is down around 60 percent in 2025 so far.

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