Fermenta Biotech first-half profit falls 6.5% to Rs 28.9394 crore

Fermenta Biotech Limited reported standalone profit after tax of Rs 28.9394 crore for the half year ended September 30, 2026, down 6.5% from Rs 30.9517 crore a year earlier, although revenue from operations rose to Rs 228.7756 crore. Lower other income, higher finance costs and a lower property contribution reduced the reported result.

Why did Fermenta Biotech’s first-half profit decline?

Fermenta Biotech’s first-half profit declined because total income fell despite growth in operating revenue. Revenue from operations increased to Rs 228.7756 crore in the half year ended September 30, 2026 from Rs 226.1339 crore in the corresponding 2025 period, but other income dropped to Rs 8.5458 crore from Rs 14.3687 crore. Total income therefore declined to Rs 237.3214 crore from Rs 240.5026 crore.

Profit before tax fell to Rs 38.9115 crore from Rs 43.4913 crore as total expenses rose to Rs 198.4099 crore from Rs 197.0113 crore. Employee-benefit expense increased to Rs 40.8541 crore from Rs 37.6994 crore, while finance costs rose to Rs 6.2721 crore from Rs 5.6926 crore. Total tax expense declined to Rs 9.9721 crore from Rs 12.5396 crore, but this did not offset the pre-tax profit decline.

The September quarter showed a similar outcome. Profit after tax was Rs 13.9536 crore for the quarter ended September 30, 2026, compared with Rs 14.7179 crore a year earlier and Rs 14.9858 crore in the June 2026 quarter. September-quarter operating revenue rose to Rs 116.9363 crore from Rs 107.1152 crore in the September 2025 quarter.

Basic earnings per share, not annualised, were Rs 10.09 for the half year, compared with Rs 10.61 in the prior-year period. The standalone statement recorded no exceptional item in either half-year period. In contrast, the year ended March 31, 2026 included Rs 6.9662 crore of net exceptional income.

Which Fermenta Biotech businesses changed the result?

Fermenta Biotech’s bulk drugs and chemicals business delivered revenue growth, while property and unallocated income were lower than a year earlier. Bulk drugs and chemicals segment revenue increased to Rs 230.7576 crore in the half year from Rs 217.7383 crore, and its segment result rose to Rs 42.5171 crore from Rs 42.0571 crore.

Property-segment revenue fell to Rs 3.9774 crore from Rs 5.5584 crore, while its segment result declined to Rs 0.0801 crore from Rs 1.7911 crore. Unallocated income declined to Rs 2.5864 crore from Rs 17.2059 crore, and the unallocated net segment result fell to Rs 2.5864 crore from Rs 5.3357 crore. Segment revenue includes amounts that are reconciled with total income in the standalone statement.

The prior-year comparison also includes a property-related difference. Fermenta Biotech said the sale of part of its freehold land at Village Takawe produced a gain of Rs 1.6289 crore in the half year ended September 30, 2025, recognised in revenue from operations for the property segment. The filing records no such gain for the half year ended September 30, 2026.

Fermenta Biotech transferred its Environment Division to wholly owned subsidiary Fermenta Environment Solutions Private Limited with effect from October 1, 2025. The transfer was completed on a slump-sale basis for Rs 19 crore, according to the notes accompanying the standalone results. This event occurred in the prior year and the filing does not quantify a current-period standalone earnings effect from the transfer.

How did working capital affect Fermenta Biotech’s cash flow?

Fermenta Biotech generated Rs 62.2959 crore of net cash from operations in the half year ended September 30, 2026, compared with Rs 35.7541 crore a year earlier. Profit before working-capital changes was Rs 49.71 crore, down from Rs 59.4274 crore. Working-capital movements turned into a net contributor of Rs 16.6229 crore, compared with a net outflow in the corresponding prior-year period.

Trade receivables increased by Rs 16.5745 crore and inventories increased by Rs 6.3476 crore, absorbing cash in the latest half year. These movements were more than offset by a Rs 19.1492 crore increase in trade payables and a Rs 20.0321 crore increase in other liabilities, alongside a Rs 0.4345 crore decrease in other assets. Net income-tax payments were Rs 4.037 crore, compared with Rs 7.4597 crore a year earlier.

Investing activities used Rs 31.8009 crore, against Rs 29.8508 crore in the previous first half. Fermenta Biotech spent Rs 17.3016 crore on property, plant and equipment, investment property, capital work-in-progress and intangible assets. It also recorded a Rs 11.80 crore net outflow on bank deposits and gave a Rs 3.50 crore loan to a subsidiary.

Financing activities used Rs 30.0461 crore, compared with Rs 5.1108 crore in the prior-year period. The latest outflow included Rs 11.6148 crore of repayment of non-current borrowings, Rs 10.7552 crore of dividends paid and Rs 6.3455 crore of finance costs paid. Cash and cash equivalents on the balance sheet were Rs 10.6516 crore at September 30, 2026, versus Rs 8.8797 crore at March 31, 2026.

What changed in Fermenta Biotech’s balance sheet?

Fermenta Biotech’s total assets increased to Rs 709.3723 crore at September 30, 2026 from Rs 652.356 crore at March 31, 2026. Trade receivables rose to Rs 160.8214 crore from Rs 137.2056 crore and inventories increased to Rs 139.0532 crore from Rs 130.6556 crore. Capital work-in-progress increased to Rs 22.7394 crore from Rs 12.7904 crore.

Total equity rose to Rs 444.1887 crore from Rs 422.8157 crore over the same period. Other equity increased to Rs 429.825 crore from Rs 408.4804 crore, while equity share capital was Rs 14.3637 crore at September 30. Bank balances other than cash equivalents increased to Rs 28.9262 crore from Rs 9.1425 crore.

Current borrowings were Rs 101.4913 crore at September 30, 2026, compared with Rs 100.9862 crore at March 31, while non-current borrowings fell to Rs 3.2465 crore from Rs 7.8994 crore. Current liabilities increased to Rs 232.5466 crore from Rs 191.4714 crore, including Rs 37.1849 crore of other current liabilities against Rs 16.4073 crore at the March year-end.

The standalone results were reviewed by S R B C & CO LLP, which issued its review report dated November 5, 2026. The auditor stated that nothing had come to its attention indicating that the standalone statement was materially misstated. Fermenta Biotech’s board approved the unaudited results on November 5, 2026.

Conclusion

Fermenta Biotech’s first-half result shows that the Rs 2.6417 crore increase in operating revenue did not preserve profit after tax, which decreased by Rs 2.0123 crore. Bulk drugs and chemicals added Rs 13.0193 crore of segment revenue and improved segment result, but lower other income, lower property contribution and Rs 0.5795 crore higher finance costs reduced reported standalone profit.

The filing identifies Rs 160.8214 crore of trade receivables, Rs 139.0532 crore of inventories and Rs 22.7394 crore of capital work-in-progress at September 30, 2026. Fermenta Biotech does not disclose a completion timetable for the capital work-in-progress or a financial target, making subsequent disclosures on these balances and finance costs a key reported comparison point.