Vimta Q2 profit rises 3.5% as PAT margin falls to 17.9%

Vimta Labs Ltd. reported Q2 FY27 total income of Rs 114.9 crore, up 9.9% year on year, while profit after tax rose 3.5% to Rs 20.6 crore. Vimta’s PAT margin declined to 17.9% from 19.1%, as material and testing costs and depreciation rose faster than total income.

Why did Vimta’s Q2 profit lag income growth?

Vimta’s Q2 FY27 profit growth lagged income growth because higher operating costs and depreciation absorbed a larger share of income. Total income increased by Rs 10.4 crore from Rs 104.5 crore in Q2 FY26 to Rs 114.9 crore, but profit after tax, or PAT, increased by Rs 0.7 crore from Rs 19.9 crore to Rs 20.6 crore.

Material and testing costs recorded the largest year-on-year increase among the disclosed expense lines, rising 30.3% to Rs 26.2 crore in Q2 FY27 from Rs 20.1 crore. Depreciation increased 26.5% to Rs 12.9 crore from Rs 10.2 crore, while employee benefits expense rose 7.3% to Rs 30.7 crore from Rs 28.6 crore. The increases in material and testing costs and depreciation exceeded the 9.9% rise in total income.

Other expenses moved in the opposite direction, declining to Rs 17.3 crore from Rs 18.9 crore in Q2 FY26. However, the Rs 1.6 crore reduction did not offset the combined Rs 10.9 crore increase in material and testing costs, employee benefits expense and depreciation. Total expenses, before finance costs and depreciation, rose to Rs 74.1 crore from Rs 67.6 crore.

How did Vimta’s quarterly margins change?

Vimta’s PAT margin fell by 1.2 percentage points year on year to 17.9% in Q2 FY27, and by 0.7 percentage points sequentially from 18.6% in Q1 FY27. Profit before tax, or PBT, margin also declined, reaching 24.0% against 25.1% in both Q2 FY26 and Q1 FY27.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 10.5% year on year to Rs 40.8 crore from Rs 36.9 crore. EBITDA margin edged up to 35.5% from 35.3% a year earlier, but was below the 36.4% reported for Q1 FY27. Depreciation increased by Rs 2.7 crore year on year, compared with the Rs 0.7 crore increase in PAT.

On a sequential basis, total income rose 1.8% from Rs 112.9 crore in Q1 FY27, while EBITDA declined 0.8% from Rs 41.1 crore. PBT fell 2.9% from Rs 28.3 crore to Rs 27.5 crore, PAT declined 2.0% from Rs 21.0 crore, and basic earnings per share decreased from Rs 4.7 to Rs 4.6.

What do Vimta’s half-year results show?

Vimta’s H1 FY27 income and operating profit grew faster than its bottom line, continuing the margin pattern evident in Q2. Total income for the six months rose 11.8% year on year to Rs 227.8 crore, while EBITDA grew 13.2% to Rs 81.9 crore. PAT increased 7.3% to Rs 41.7 crore from Rs 38.8 crore.

The H1 EBITDA margin improved by 0.5 percentage points to 36.0%, compared with 35.5% in H1 FY26. In contrast, PAT margin declined by 0.7 percentage points to 18.3% from 19.0%. PBT rose 8.4% to Rs 55.9 crore, but its margin decreased to 24.5% from 25.3%.

For H1 FY27, material and testing costs rose to Rs 48.8 crore from Rs 38.9 crore, an increase of Rs 9.9 crore. Depreciation rose to Rs 25.4 crore from Rs 20.1 crore, while employee benefits expense increased to Rs 60.1 crore from Rs 56.4 crore. Other expenses increased by Rs 0.9 crore to Rs 37.0 crore.

How does Vimta’s Q2 performance compare with its record?

Vimta’s Q2 FY27 PAT margin was below the 19% reported for both FY25 and FY26 in its financial track record, while its 35.5% EBITDA margin was below the 36% recorded in each of those full years. The presentation states that FY24 and FY25 figures are from continuing operations and exclude the Diagnostic and Pathological services business.

From FY22 to FY26, total revenue increased from Rs 279.7 crore to Rs 416.3 crore, a period for which the presentation reports a 10.5% compound annual growth rate. EBITDA rose from Rs 81.7 crore in FY22 to Rs 148.9 crore in FY26, while PAT increased from Rs 41.3 crore to Rs 77.5 crore. The presentation gives compound annual growth rates of 16.2% for EBITDA and 17.0% for PAT over the same period.

Vimta reported total debt of Rs 14.434 crore and cash and cash equivalents, including other bank balances, of Rs 70.112 crore as of 30 September 2026. Capital expenditure cash outflow was Rs 9.2 crore in Q2 FY27, while the financial track record lists total capital expenditure of Rs 27.2 crore for H1 FY27.

Conclusion

Vimta delivered higher Q2 FY27 income and EBITDA, but the gain translated into a smaller increase in PAT. Income rose 9.9% to Rs 114.9 crore and EBITDA rose 10.5% to Rs 40.8 crore, whereas PAT rose 3.5% to Rs 20.6 crore as material and testing costs and depreciation increased. The resulting PAT margin of 17.9% was below both the prior-year quarter and the preceding quarter.

The next results will show whether material and testing costs and depreciation continue to rise faster than income. Capital expenditure is also an unresolved factor after Rs 9.2 crore of Q2 FY27 cash outflow and Rs 27.2 crore reported for H1 FY27, alongside cash and cash equivalents of Rs 70.112 crore as of 30 September 2026.