Vimta Labs (524394) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue of INR 993 million in Q1 FY26, up 31.4% year-on-year, with strong margin maintenance and robust growth across core service lines.

• EBITDA reached INR 354 million with a margin of 35.7%, and profit after tax stood at INR 189 million, up 35.9% year-on-year.

• EPS for Q1 FY26 was INR 4.2, up 35.5% year-on-year.

• Board approved a 1:1 bonus issue and completed a US FDA BCP inspection with no 483 observations, also receiving CGMP compliance from ANSM, EMA.

• Board approved appointment of Lavanya and Associates LLP as Cost Auditors for FY 2024-25 and 2025-26 due to change in firm constitution.

Financial highlights

• Total income for Q1 FY26 was INR 993 million, up from INR 756 million in Q1 FY25, a 31.4% year-on-year increase.

• EBITDA margin remained strong at 35.7% in Q1 FY26, up from 35.2% in Q1 FY25.

• Profit after tax stood at INR 189 million, up 35.9% year-on-year, and PAT margin improved to 19.0%.

• Basic EPS from continuing and discontinued operations was INR 4.25 for Q1 FY26.

• Maintained a net debt-free or low-leverage balance sheet with cash and cash equivalents of INR 379.3 million.

Outlook and guidance

• Confident in maintaining strong performance and targeting quarterly revenue of INR 120–125 crore, with efforts ongoing to achieve this run rate.

• Margins may reduce by 1–2% in the coming quarters due to increased maintenance and HR costs but are expected to remain strong by global standards.

• Expansion into biologics contract research and development services is on track for commercialization in Q1 FY27.

• CapEx of around INR 100 crore planned for FY26, with 30% allocated to biologics CRDS setup.

• Growth momentum expected to continue, driven by capacity expansions, service innovations, and penetration into new markets.