Kimia Biosciences Q2 profit doubles despite revenue fall

Kimia Biosciences Limited reported September-quarter profit of Rs 2.39 crore for the quarter ended September 30, 2026, up 135% from Rs 1.02 crore a year earlier, despite a 21% decline in revenue from operations to Rs 26.81 crore. Total expenses fell 25% to Rs 24.41 crore, lifting profit before tax to Rs 2.40 crore.

How did Kimia Biosciences perform in the September quarter?

Kimia Biosciences earned Rs 2.39 crore in profit for the period in the quarter ended September 30, 2026, compared with Rs 1.02 crore in the quarter ended September 30, 2025. Basic and diluted earnings per equity share, not annualised, increased to Rs 0.50 from Rs 0.21, and the company reported no exceptional items in either quarter.

Kimia Biosciences' revenue from operations declined to Rs 26.81 crore from Rs 34.00 crore a year earlier, while total income fell to Rs 26.81 crore from Rs 33.67 crore. Other income was negative Rs 40,000 in the latest quarter, compared with negative Rs 33.17 lakh in the corresponding quarter of 2025.

The reduction in total expenses of Rs 8.31 crore exceeded the Rs 6.86 crore fall in total income, which accounts for the increase in reported profit before tax. Deferred tax expense was Rs 94,000 in the September 2026 quarter, whereas the prior-year quarter recorded a deferred tax credit of Rs 6.51 lakh.

Which costs changed in Kimia Biosciences' second quarter?

Kimia Biosciences reduced materials consumed and other expenses in the September 2026 quarter, although finance costs increased. Materials consumed decreased to Rs 10.95 crore from Rs 17.71 crore, while other expenses declined to Rs 4.30 crore from Rs 5.71 crore, together reducing these two cost lines by Rs 8.17 crore.

The inventory-change expense was Rs 4.07 crore, compared with Rs 4.75 crore a year earlier, and employee benefits expense fell to Rs 2.91 crore from Rs 3.31 crore. Depreciation and amortisation increased to Rs 1.13 crore from Rs 97.13 lakh, while finance costs rose to Rs 1.05 crore from Rs 26.70 lakh.

Sequentially, revenue rose from Rs 20.72 crore in the quarter ended June 30, 2026, to Rs 26.81 crore in the September quarter. Profit for the period increased from Rs 35.58 lakh to Rs 2.39 crore, while profit before tax rose from Rs 48.98 lakh to Rs 2.40 crore.

The sequential cost mix changed sharply in the inventory line. Materials consumed declined from Rs 16.57 crore in the June quarter, but the inventory-change line shifted from a credit of Rs 5.34 crore to an expense of Rs 4.07 crore; total expenses nevertheless rose by Rs 4.10 crore, less than the Rs 6.00 crore increase in total income.

What do Kimia Biosciences' half-year results show?

Kimia Biosciences reported revenue from operations of Rs 47.53 crore for the half year ended September 30, 2026, down from Rs 57.58 crore in the prior-year half. Profit for the period increased to Rs 2.74 crore from Rs 1.62 crore, and profit before tax rose to Rs 2.89 crore from Rs 1.64 crore.

Total expenses for the six months decreased to Rs 44.72 crore from Rs 56.46 crore. Materials consumed declined to Rs 27.52 crore from Rs 34.77 crore, employee benefits expense fell to Rs 5.88 crore from Rs 6.59 crore, and other expenses decreased to Rs 8.47 crore from Rs 9.33 crore.

Finance costs for the half year were Rs 1.88 crore, lower than Rs 2.01 crore a year earlier, while depreciation and amortisation increased to Rs 2.24 crore from Rs 1.91 crore. The filing identifies pharmaceuticals as Kimia Biosciences' single primary business segment under Indian Accounting Standard 108, so it provides no separate product or segment revenue figures.

The half-year comparison shows reported expenses falling by Rs 11.73 crore against a Rs 10.05 crore reduction in revenue from operations. That relationship supported higher half-year profit, but the cash-flow statement shows that the working-capital outcome moved in the opposite direction from the reported profit result.

Why did Kimia Biosciences report an operating cash outflow?

Kimia Biosciences reported net cash used in operating activities of Rs 11.63 crore for the half year ended September 30, 2026, compared with net operating cash of Rs 1.24 crore in the prior-year half. Operating profit before working-capital changes was Rs 4.10 crore, below Rs 5.54 crore a year earlier.

An increase in inventories used Rs 8.80 crore of cash, while a decrease in trade and other payables used Rs 10.70 crore. A reduction in trade and other receivables added Rs 3.84 crore, and income-tax payments of Rs 5.35 lakh brought net operating cash outflow to Rs 11.63 crore.

Investing activities used Rs 73.21 lakh, principally for purchases of property, plant and equipment, including intangible assets and capital advances. Financing activities generated Rs 10.43 crore, including Rs 10.49 crore of net proceeds from current borrowings and Rs 5.40 crore of receipts from non-current borrowings, offset partly by Rs 4.92 crore of finance costs paid.

Cash and cash equivalents were Rs 27.05 lakh at September 30, 2026, compared with Rs 31.58 lakh at the beginning of the half year in the cash-flow statement. The net decrease of Rs 4.53 lakh followed the operating and investing outflows despite the financing inflow.

What changed in Kimia Biosciences' balance sheet?

Kimia Biosciences reported total assets of Rs 107.53 crore at September 30, 2026, compared with Rs 103.20 crore at March 31, 2026. Inventories increased to Rs 55.06 crore from Rs 26.26 crore, while trade receivables declined to Rs 22.83 crore from Rs 29.32 crore.

Property, plant and equipment decreased to Rs 28.94 crore from Rs 30.08 crore, whereas intangible assets increased to Rs 7.92 crore from Rs 7.10 crore. Other assets rose to Rs 7.72 crore from Rs 5.91 crore, alongside the Rs 73.21 lakh investing cash outflow reported for the half year.

Non-current borrowings increased to Rs 27.67 crore from Rs 22.81 crore, and current borrowings rose to Rs 22.31 crore from Rs 11.19 crore. Trade payables due to parties other than micro and small enterprises decreased to Rs 29.94 crore from Rs 42.15 crore, consistent with the cash-flow statement's reported reduction in payables.

Other equity increased to Rs 15.73 crore from Rs 12.99 crore, while paid-up equity share capital remained Rs 4.73 crore. Kimia Biosciences' board approved the unaudited standalone results on November 13, 2026, and the statutory auditor issued an unmodified limited-review conclusion.

Conclusion

Kimia Biosciences increased September-quarter and half-year profit even as revenue declined, because reported expenses fell by more than income. The results also show a contrast between profit and cash generation: inventory growth and lower payables contributed to a Rs 11.63 crore operating cash outflow in the half year ended September 30, 2026.

The next reported results will show whether inventory of Rs 55.06 crore converts into revenue and operating cash, and how current borrowings of Rs 22.31 crore develop. The filing discloses no separate segment target, expansion plan or scheduled operating milestone because pharmaceuticals is Kimia Biosciences' sole primary business segment.