Fermenta Biotech Posts Record FY26 Revenue and Approves Major Capex

Fermenta Biotech's consolidated revenue reached a record ₹548 crore in FY26, a 14% increase over FY25. Excluding one-time real estate income, core operational growth was a significant 26%. The company also secured board approval for a ₹110 crore capital expenditure for its Dahej facility.

Reader Takeaway: Record revenue driven by core growth; capex to fuel future expansion in health and green chemistry.

What just happened

Fermenta Biotech Ltd. announced its financial results for the fiscal year ending March 2026 (FY26), showcasing strong performance metrics. Consolidated revenue touched ₹548 crore, while Profit After Tax stood at ₹70 crore. A key development was the board's approval of a ₹110 crore capital expenditure for the Dahej plant.

The company reported a core EBITDA of ₹120 crore (excluding real estate), marking a substantial 44% increase and an EBITDA margin of 23.3%. The debt-to-equity ratio remained healthy at 0.27.

Why this matters

This announcement is significant as it signals Fermenta Biotech's successful transition towards its core operational businesses, particularly in nutrition and green chemistry. The substantial growth in core EBITDA highlights improved operational efficiency and market demand. The approved capex signals a commitment to expanding capacity for high-value products, positioning the company for sustained future growth.

The backstory

In previous periods, Fermenta Biotech had benefited from real estate income as part of its strategy to unlock asset value. This income significantly boosted overall profits. However, the FY26 results indicate the near completion of this strategy, with real estate contribution dropping to ₹2 crore from ₹45 crore in FY25, allowing management to fully concentrate on core business segments.

What changes now

The focus shifts entirely to operational performance and expansion. The ₹110 crore investment in the Dahej facility will be directed towards increasing production capacity for plant-source Vitamin D3, Calcifediol, and biocatalysis enzymes. This expansion is crucial for capturing growth in the preventive health and clean-label markets.

Risks to watch

While the core business shows strength, investors will monitor the successful execution and ramp-up of the new capex projects. Any delays or cost overruns could impact projected returns. The company's profitability also saw a slight dip in PAT (-8%) despite revenue growth, which warrants attention.

Peer comparison

Fermenta Biotech operates in the specialty chemicals and biotechnology sector, which includes companies focused on active pharmaceutical ingredients (APIs), enzymes, and nutritional ingredients. Growth in this sector is often driven by innovation, capacity expansion, and demand from global healthcare and food industries.

Context metrics (time-bound)

• FY26 Consolidated Revenue: ₹548 crore (up 14% YoY)
• FY26 Core EBITDA (ex-real estate): ₹120 crore (up 44% YoY)
• FY26 PAT: ₹70 crore (down 8% YoY)
• Approved Dahej Capex: ₹110 crore
• Debt-to-Equity Ratio: 0.27
• Return on Equity (ROE): 16.5%

What to track next

Investors will be keen to observe the progress of the Dahej facility expansion and the subsequent impact on production volumes and revenues for Vitamin D3 and enzymes. Monitoring the company's core EBITDA growth and overall profitability will be key in the coming quarters.