Advanced Enzyme Technologies (ADVENZYMES) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 1,845 million, up 26% year-on-year, with EBITDA up 42% and PAT up 34%; H1 FY26 revenue was INR 3,704 million, up 23% year-on-year.

• Sequentially, Q2 FY26 revenue was flat, but EBITDA and PAT grew 6% and 11% respectively from Q1 FY26.

• Human healthcare/nutrition contributed 66% of Q2 revenue, animal healthcare/nutrition 10%, bioprocessing 14%, and specialized manufacturing 10%.

• Management maintains mid-double-digit growth guidance for FY26, citing ongoing uncertainties, especially from tariffs and global market conditions.

• The group operates solely in the 'manufacturing and sales of enzymes' segment.

Financial highlights

• Q2 FY26 EBITDA margin was 33%, and PAT margin was 24%; H1 FY26 EBITDA margin stood at 31%, and PAT margin at 23%.

• EPS for Q2 FY26 was ₹3.87, up 32% year-over-year; H1 FY26 EPS was Rs 7.44 (basic), up from Rs 5.99.

• Cash and cash equivalents as of September 30, 2025, stood at Rs 623.57 million.

• Net working capital days at 135 for FY25; net worth at ₹14,209 million; ROE at 11.31% and ROCE at 8.94% for FY25.

• Gross margin for H1 FY26 was approximately 75%; net profit margin for the six months was 7.5%.

Outlook and guidance

• Management reiterates mid-teens revenue growth guidance for FY26, despite 23% YoY growth in H1, due to global uncertainties and tariff impacts.

• Focus areas include expanding animal nutrition, probiotics, bio-catalysis, and baking solutions, with new product launches and global distribution.

• R&D spending to increase with the new R&D center coming online by end of March, supporting future product launches.

• The company is closely monitoring the impact of new US tariffs on enzyme imports from India; as of September 2025, no material impact was observed.