Balance sheet of SMS Pharmaceuticals is strong.
But short term working capital might become an issue for this company.

Yes, The net debt of SMS Pharmaceuticals is increasing.
Latest net debt of SMS Pharmaceuticals is ₹269 Crs as of Mar-25.
This is greater than Mar-24 when it was ₹208 Crs.

Yes, profit is increasing.
The profit of SMS Pharmaceuticals is ₹67.4 Crs for TTM, ₹49.83 Crs for Mar 2024 and -₹7.06 Crs for Mar 2023.

The company seems to be paying a very low dividend.
Investors need to see where the company is allocating its profits.
SMS Pharmaceuticals latest dividend payout ratio is 6.8% and 3yr average dividend payout ratio is 5.44%

Companies resources are allocated to majorly unproductive assets like Accounts Receivable