Vimta Labs (524394) Q4 25/26 earnings summary

Executive summary

• FY 2026 saw strong execution, resilience, and strategic progress, with consistent growth across core service lines and robust demand in pharmaceutical research and food testing.

• Maintained leadership in pharma analytical and food testing, with significant overseas revenue contributions and talent retention in scientific and leadership roles.

• Entry into biologics contract research and development services marks a strategic milestone, with FY 2027 focused on execution and building credibility in this new vertical.

• Continued investment in infrastructure and capacity expansion to support future growth.

• Audited financial results for Q4 and FY ended March 31, 2026, were approved, with an unmodified auditor's opinion issued.

Financial highlights

• Q4 FY 2026 total income was INR 1,120 million, up 16.6% year-over-year and 11.5% sequentially; EBITDA margin at 37.6%.

• FY 2026 total income was INR 4,163 million, up 19.5% year-over-year; EBITDA margin at 35.8%.

• Q4 profit after tax was INR 211 million, up 15.2% year-over-year; FY 2026 PAT was INR 775 million.

• Basic EPS for Q4 FY 2026 at INR 4.7; FY 2026 at INR 17.4.

• Net debt-free balance sheet with cash and equivalents near INR 650 million as of March 31, 2026.

Outlook and guidance

• Pharmaceutical and food testing services, which drive 90% of revenues, are expected to continue leading growth.

• Biologics vertical is not expected to be a significant revenue contributor in its maiden year; focus is on building market traction and client onboarding.

• Management targets a 20%-25% CAGR over the next 3-4 years, acknowledging this as a stretch but achievable goal.

• Focus on capacity expansions, operational excellence, and penetration into new markets.

• Dividend of ₹2 per share recommended for FY 2025-26, with record date set for June 18, 2026.