ZIM Laboratories posts Rs 2.1414 crore Q2 loss as revenue rises

ZIM Laboratories Limited reported a standalone net loss of Rs 2.1414 crore for the quarter ended 30 September 2026, compared with a Rs 11.60 lakh profit a year earlier, despite 18% growth in revenue from operations to Rs 104.2231 crore. Total expenses of Rs 109.3044 crore exceeded total income of Rs 106.5136 crore.

How did ZIM Laboratories perform in Q2 September 2026?

ZIM Laboratories moved from profit to loss in the quarter ended 30 September 2026, reporting a net loss after tax of Rs 2.1414 crore against net profit after tax of Rs 11.60 lakh in the quarter ended 30 September 2025. Revenue from operations increased from Rs 88.3943 crore to Rs 104.2231 crore, while other income rose from Rs 2.0439 crore to Rs 2.2905 crore.

The loss narrowed sequentially from Rs 3.8755 crore in the quarter ended 30 June 2026. Revenue increased from Rs 93.0483 crore in the June quarter, but total expenses also increased from Rs 99.4560 crore to Rs 109.3044 crore in the September quarter.

ZIM Laboratories recorded a loss before tax of Rs 2.7908 crore in the September 2026 quarter, against profit before tax of Rs 22.81 lakh a year earlier. A deferred-tax credit of Rs 64.94 lakh reduced the post-tax loss, whereas the comparable quarter included deferred-tax expense of Rs 11.21 lakh.

Why did ZIM Laboratories report a loss despite higher revenue?

ZIM Laboratories reported a loss because total expenses reached Rs 109.3044 crore in the September 2026 quarter, exceeding total income of Rs 106.5136 crore, while in the year-earlier quarter expenses of Rs 90.2101 crore were below income of Rs 90.4382 crore. The change turned a pre-tax profit of Rs 22.81 lakh into a pre-tax loss of Rs 2.7908 crore.

Employee benefits expense increased to Rs 18.5591 crore from Rs 15.4606 crore, finance costs rose to Rs 3.9375 crore from Rs 3.1594 crore, and depreciation and amortisation increased to Rs 6.2646 crore from Rs 4.8283 crore. Other expenses rose to Rs 32.6568 crore from Rs 27.1177 crore, while cost of materials consumed was Rs 40.8381 crore.

The inventory-change line also changed between the two September quarters. It was an expense of Rs 4.8327 crore in the 2026 quarter, compared with a credit of Rs 6.7838 crore in the 2025 quarter; purchases of stock-in-trade declined to Rs 2.2156 crore from Rs 2.9289 crore.

ZIM Laboratories reported basic and diluted earnings per share of negative Rs 0.40 for the September 2026 quarter, compared with positive Rs 0.03 a year earlier. The quarterly earnings per share figure is not annualised, and the stated face value is Rs 10 per equity share.

What do ZIM Laboratories' half-year results show?

ZIM Laboratories reported a standalone net loss of Rs 6.0169 crore for the half year ended 30 September 2026, compared with a loss of Rs 1.5759 crore in the corresponding half year. Half-year revenue from operations nevertheless increased to Rs 197.2714 crore from Rs 159.8220 crore.

Total income for the first half rose to Rs 200.5474 crore from Rs 163.3415 crore, while total expenses increased to Rs 208.7604 crore from Rs 165.3963 crore. This resulted in a loss before tax of Rs 8.2130 crore, compared with a loss before tax of Rs 2.0548 crore in the prior-year half.

Employee benefits expense over the six months rose to Rs 36.6960 crore from Rs 29.0348 crore, and other expenses increased to Rs 65.6952 crore from Rs 50.6275 crore. Finance costs rose to Rs 7.5809 crore from Rs 6.4629 crore, while depreciation and amortisation rose to Rs 11.4354 crore from Rs 9.6181 crore.

The half-year loss per share was negative Rs 1.12, compared with negative Rs 0.32 in the previous corresponding period. Total comprehensive loss, which includes other comprehensive income after tax, was Rs 6.1294 crore for the half year ended 30 September 2026, against Rs 1.8451 crore a year earlier.

What changed in ZIM Laboratories' cash flow and borrowings?

ZIM Laboratories generated net cash from operating activities of Rs 1.0883 crore in the half year ended 30 September 2026, down from Rs 20.2411 crore in the prior-year half. Net cash generated from operations before direct taxes was Rs 2.1742 crore, compared with Rs 22.6797 crore a year earlier.

Investing activities used Rs 33.3751 crore in the 2026 half year, compared with Rs 17.0067 crore in the prior-year period. Purchases of property, plant and equipment and intangible assets were Rs 25.8703 crore, and the company placed Rs 33.9500 crore in bank deposits with original maturities exceeding three months while receiving Rs 25.5751 crore on maturities.

Financing activities generated Rs 14.1730 crore of cash in the half year, compared with an outflow of Rs 3.4185 crore a year earlier. Proceeds from long-term borrowings were Rs 33.4066 crore, while long-term borrowing repayments were Rs 10.1155 crore and finance costs paid were Rs 7.5219 crore.

Cash and cash equivalents stood at Rs 68.19 lakh at 30 September 2026, down from Rs 18.7957 crore at 31 March 2026. Non-current borrowings increased to Rs 62.7935 crore from Rs 41.5883 crore, while current borrowings rose to Rs 83.3608 crore from Rs 81.3956 crore over the same period.

ZIM Laboratories operated in the single pharmaceuticals business segment disclosed in the standalone results, with no separate reportable segment under Indian Accounting Standard 108, or Ind AS 108. The Board approved the unaudited standalone results on 4 November 2026 after Audit Committee review on 3 November 2026.

Conclusion

ZIM Laboratories' September 2026 standalone result shows that revenue growth to Rs 104.2231 crore did not cover total expenses of Rs 109.3044 crore. The resulting quarterly loss of Rs 2.1414 crore followed a Rs 11.60 lakh profit a year earlier, while the half-year loss widened to Rs 6.0169 crore.

The filing does not disclose a management target, operating plan or scheduled event after the results approved on 4 November 2026. Future disclosures will therefore be needed to clarify whether operating cash flow, which fell to Rs 1.0883 crore in the half year, and borrowings, including Rs 62.7935 crore of non-current borrowings at 30 September 2026, change alongside revenue and expenses.