Fermenta Biotech reported a challenging first half for FY27, with consolidated revenue falling 7% to Rs 261.9 crore and PAT slipping 52% to Rs 18.9 crore. The results were hit by lower pricing in the animal nutrition segment and the absence of one-off income from the previous year. While the human nutrition business remains resilient, investors are watching for recovery in animal nutrition and the commercialization of new product pipelines like VITADEE Green.
Fermenta Biotech H1FY27 Profit Falls 52% on Weak Animal Nutrition
Revenue: Rs 261.9 Crore | Profit After Tax: Rs 18.9 Crore
Reader Takeaway: Stability in human nutrition offsets severe cyclical headwinds in animal nutrition and the lack of previous-year one-off gains.
What just happened
Fermenta Biotech Limited released its consolidated financial results for the half-year ended September 30, 2026. The company saw a significant bottom-line contraction as PAT dropped 52% year-on-year to Rs 18.9 crore. Revenue slipped 7% to Rs 261.9 crore, while EBITDA witnessed a 34% decline to Rs 45.6 crore.
Why this matters
The results highlight the company's susceptibility to cyclical price pressures in its animal nutrition business. Volumes in this division fell by 31%, with realization dropping 35%. The impact was compounded by the absence of non-recurring income—including a Rs 2.7 crore insurance claim—which had boosted the base period performance in H1FY26.
Segment Performance
- Human Nutrition: The segment remains the anchor, growing 2% and contributing nearly two-thirds of total revenue.
- Animal Nutrition: The key pressure point, facing a difficult price cycle that weighed heavily on overall margins.
- Geographical Shift: India has emerged as the primary market, now accounting for 51% of consolidated revenue, up from 40% in the previous year.
Strategic Developments
The company is focused on its future pipeline. It secured FSSAI approval for 'VITADEE Green' (plant-source Vitamin D3) in July 2026, with capacity expected to come online by Q2FY28. Additionally, the company is preparing for regulatory filings for 'Calcifediol' by the end of FY27. Notably, Fermenta also marked a milestone by listing on the NSE in August 2026.
Risks to watch
Subsidiary performance remains a concern. The German business reported a 62% revenue decline and an EBITDA loss of Rs 2.5 crore, while US and environment-related subsidiaries also reported losses. Management must navigate both the cyclical recovery in animal nutrition and the turnaround of these underperforming subsidiaries.