Vimta Labs reported a steady second quarter with a 9.9% rise in total income to INR 1,149 million and an EBITDA margin of 35.5%. A key highlight for shareholders is the company's entry into the biologics market, which has started generating revenue. Despite challenges in food testing exports and prolonged R&D decision cycles from clients, the company remains net debt-free with cash reserves of INR 701 million, keeping its FY28 turnover target of INR 700 crore in focus.
Vimta Labs Q2 FY27 Financial Performance
Total income reached INR 1,149 million; Profit After Tax (PAT) stood at INR 206 million.
Reader Takeaway: Revenue growth is supported by new biologics contributions, though customer decision delays and export headwinds persist.
What just happened
Vimta Labs has released its financial results for the quarter ending September 2026. The company achieved a 9.9% year-on-year growth in total income, totaling INR 1,149 million. EBITDA grew by 10.5% to INR 408 million, resulting in a healthy EBITDA margin of 35.5%. PAT saw a modest 3.5% increase to INR 206 million compared to the same period last year.
Why this matters
The commencement of revenue generation from the biologics services vertical is a significant milestone. This investment, totaling INR 20 crore, represents a strategic move to broaden the company's pharmaceutical services portfolio. With the company being net debt-free and holding INR 701 million in cash, it is well-positioned to fund its planned FY27 capital expenditure of INR 80 crore.
The backstory
The preclinical business has been a standout performer, maintaining a 4-year CAGR of approximately 30%. While pharma testing and food export segments faced recent hurdles due to geopolitical and logistics issues, management noted that electronics testing remains stable. The company has recently doubled its capacity in electronics to meet demand from defense OEMs and electric vehicle manufacturers.
Risks to watch
Investors should monitor the longer decision-making cycles currently observed among clients, which have contributed to a lull in pharma R&D. Additionally, management highlighted a potential 100-200 basis point moderation in EBITDA margins in the medium term as the service mix shifts toward the newer biologics business.
What to track next
The company maintains its medium-term goal of reaching a turnover of INR 700 crore by FY28. Future performance will depend on the successful conversion of customer inquiries into executable projects and the recovery of volumes in food export testing.