Vimta Labs Q2 FY27 results: net profit up 3.5% to ₹20.61 crore, revenue up 9.9%

How did Vimta Labs perform in Q2 FY27?

Vimta Labs reported standalone revenue of ₹111.98 crore for Q2 FY27, up ₹10.13 crore or 9.9% from Q2 FY26. Total income was ₹114.89 crore, up ₹10.38 crore or 9.9%. EBITDA rose ₹3.64 crore or 10.6% to ₹37.87 crore, while the margin increased 0.2 percentage points to 33.8%.

Profit before tax was ₹27.52 crore, up ₹1.25 crore or 4.8% from Q2 FY26, and profit for the period was ₹20.61 crore, up ₹0.69 crore or 3.5%. Basic EPS rose ₹0.15 or 3.4% to ₹4.61. The PAT margin was 18.4%, down 1.2 percentage points from 19.6%.

Against Q1 FY27, revenue rose ₹2.91 crore or 2.7% to ₹111.98 crore and EBITDA increased ₹0.56 crore or 1.5% to ₹37.87 crore. EBITDA margin fell 0.4 percentage points to 33.8%. Profit before tax declined ₹0.82 crore or 2.9% to ₹27.52 crore, while profit fell ₹0.43 crore or 2.0% to ₹20.61 crore and basic EPS declined ₹0.10 or 2.1% to ₹4.61.

What changed in Vimta Labs' costs and profit?

Total expenses increased ₹9.13 crore or 11.7% from Q2 FY26 to ₹87.36 crore. Cost of materials and testing expenditure rose ₹6 crore or 29.8% to ₹26.15 crore, employee cost increased ₹2.06 crore or 7.2% to ₹30.67 crore, and depreciation rose ₹2.63 crore or 25.7% to ₹12.87 crore. Other expenses declined ₹1.57 crore or 8.3% to ₹17.29 crore.

Other income increased ₹0.24 crore or 9.0% from Q2 FY26 to ₹2.90 crore. Tax expense rose ₹0.56 crore or 8.8% to ₹6.91 crore. There was no exceptional item in Q2 FY27, Q2 FY26 or Q1 FY27. The available figures do not state a reason for the movement in each cost line.

Sequentially, total expenses rose ₹2.81 crore or 3.3% from Q1 FY27. Cost of materials and testing expenditure increased ₹3.48 crore or 15.4%, employee cost rose ₹1.25 crore or 4.2%, finance costs rose ₹0.15 crore or 62.5%, and depreciation increased ₹0.32 crore or 2.5%. Other expenses fell ₹2.38 crore or 12.1%.

How did the first half of FY27 go?

In H1 FY27, Vimta Labs reported standalone revenue of ₹221.06 crore, up ₹21.65 crore or 10.9% from H1 FY26. Total income rose ₹23.95 crore or 11.8% to ₹227.77 crore, while profit before tax increased ₹4.33 crore or 8.4% to ₹55.86 crore.

Profit for the first half was ₹41.66 crore, up ₹2.85 crore or 7.3% from ₹38.81 crore in H1 FY26. Basic EPS increased ₹0.61 or 7.0% to ₹9.32. These results cover the first half of FY27 and use standalone figures.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹593.27 crore, compared with ₹562.23 crore on 31 March 2026. Total equity was ₹491.36 crore against ₹456.87 crore, while borrowings increased to ₹14.43 crore from ₹3.33 crore and cash rose to ₹37.33 crore from ₹22.97 crore.

Inventories were ₹29.43 crore at the end of Q2 FY27, compared with ₹29.95 crore at the previous balance-sheet date. Trade receivables increased to ₹119.27 crore from ₹105.7 crore, while trade payables declined to ₹9.25 crore from ₹11.66 crore.

H1 FY27 operating cash flow was ₹45.94 crore, compared with ₹74.87 crore in H1 FY26. Investing cash flow was negative ₹33.38 crore against negative ₹55.89 crore, while financing cash flow was ₹1.8 crore against negative ₹6.68 crore. Capital expenditure was ₹27.14 crore in H1 FY27 and ₹47.83 crore in H1 FY26.

How has Vimta Labs done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis and reached ₹111.98 crore in Q2 FY27, the highest point in the eight-quarter series. Revenue was nearly unchanged from ₹109.07 crore in Q1 FY27 and higher than ₹101.85 crore in Q2 FY26. The latest direction was therefore upward, though sequentially modest.

Profit for the period peaked at ₹21.11 crore in Q4 FY26 and was ₹20.61 crore in Q2 FY27, compared with ₹21.04 crore in Q1 FY27. EBITDA margin reached 36.0% in Q4 FY26, fell to 34.2% in Q1 FY27 and ended Q2 FY27 at 33.8%. Profit had risen year on year in each of the last three quarters.

What else did the company announce?

The Audit Committee reviewed and recommended the unaudited Q2 and half-year results, and the Board approved them on 30 October 2026. The statutory auditor issued an unmodified limited-review report, and the Board also noted the incorporation of Vimta Labs LLC as a wholly owned subsidiary.

The same-day filing said Vimta Labs LLC was incorporated in the United States on 24 September 2026 as a contract research organisation. Vimta Labs holds 100% of the subsidiary, which is expected to support preclinical, clinical trials, analytical testing and biologics CRADS services. The total planned investment was USD: 8,500, with 100% subscription to initial paid-up capital in cash and further investment in one or more tranches. No dividend or fund-raising announcement was included in the filings.

What did Vimta Labs' management say?

Management maintained its FY28 target of approximately INR700 crore of turnover, representing about 20-25% top-line CAGR, and an EBITDA margin of 35-36%. It also maintained the FY27 capex budget at approximately INR80 crore, including INR45-50 crore of maintenance capex; remaining investment will target analytical capabilities and self-service and will be phased according to business visibility, customer demand and budget requirements.

Management expects CRADS services for large molecules and clinical research to improve during Q3 and Q4 FY27, subject to proposal conversion. It expects export- and import-linked food samples to recover toward normal levels by the current quarter or, at the latest, Q4, while no quarterly revenue outlook was provided.

Management said biologics CRADS had begun generating initial revenue, but the business is at an early stage and material scale is expected only after roughly two years. It also said preclinical delivered an almost 30% four-year CAGR, although large-animal capacity is constrained, and that pharma inquiries and RFPs were recovering after an R&D pipeline lull.

The CFO said planned investments would be phased based on business visibility, customer demand and budget requirements. Management identified extended customer decision cycles, disrupted food export and import flows, biologics incubation, regulatory complexity, talent availability and competitive intensity as risks. It also flagged a possible 100-200 basis point medium-term EBITDA-margin correction from service mix.

How did Vimta Labs shares react?

Vimta Labs shares were down 2.1% after five minutes, down 3.0% after 15 minutes and down 2.3% after 30 minutes from the price when the filing appeared. On the reaction day, the stock fell 6.8% from the previous close of ₹521.3; by the next day's close, it was down 7.9% from that pre-results close.

Earlier reaction-day moves were negative on 20 July 2026 at 5.2%, 6 May 2026 at 1.3%, 28 January 2026 at 11.2%, 3 November 2025 at 6.1%, 17 July 2025 at 1.7% and 24 January 2025 at 1.2%. The 8 November 2024 reaction day was positive at 20.7%.