Advanced Enzyme Technologies (ADVENZYMES) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue rose 20% year-over-year to ₹1,859 million, with EBITDA up 10% and PAT up 16%, achieving record quarterly revenue despite global economic and geopolitical challenges.

• Sequentially, revenue increased 11%, EBITDA 24%, and PAT 51% from Q4 FY25.

• Growth was broad-based across all business segments, led by human and animal healthcare/nutrition, with B2C revenue in the USA showing notable improvement.

• Management remains optimistic about sustaining double-digit growth, focusing on resilience, long-term value, and global expansion.

• The group operates primarily in enzyme manufacturing and sales, with expansion into nutrition and wellness through a new subsidiary.

Financial highlights

• Q1 FY26 revenue reached ₹1,859 million, up 20% year-over-year and 11% sequentially; EBITDA was ₹564 million, a 10% increase year-over-year and 24% sequentially, with a margin of 30%.

• PAT for Q1 FY26 stood at ₹404 million, up 16% year-over-year and 51% sequentially, with a PAT margin of 22%.

• EPS for Q1 FY26 was ₹3.57, up 17% year-over-year.

• Gross margin for the quarter was in the 72%-73% range, impacted by product mix and tariffs.

• Net working capital days stood at 135 for FY25; net worth reached ₹14,209 million, and net debt-to-equity remained low at 0.02x.

Outlook and guidance

• Management expects the growth trajectory to continue across all segments, maintaining optimism for double-digit growth in the medium term.

• Focus on expanding animal nutrition, probiotics, bio-catalysis, and baking segments, with plans to broaden geographical presence and invest in R&D.

• Gross margins are expected to remain in the 73%-75% range, with some pressure from tariffs and product mix.

• New R&D facility is expected to be commissioned in the last quarter of the year.

• Final dividend of ₹1.20 per equity share for FY25 approved, and interim dividend of ₹4 per share declared and paid during the quarter.