Zim Laboratories Q3FY26 Revenue Up 12.8% to ₹1,087 Mn; PAT Turns Positive
Zim Laboratories reported Q3FY26 revenue of ₹1,087 million, up 12.8% YoY. EBITDA increased 9.1% to ₹145 million, and PAT turned positive at ₹44 million. The company plans to raise ₹35 crore via preferential allotment to Florintree Trinex LLP. Most CAPA remediation is complete, with inspections expected from March 2026.
The positive revenue growth and return to profitability are significant. The planned equity raise and progress on CAPA remediation are also important factors, impacting future operations and investor confidence.
The company reported year-on-year revenue growth, a positive PAT, and significant progress in its remediation efforts, alongside a planned equity raise which indicates future growth prospects.
Zim Laboratories Limited announced its financial results for the third quarter and nine months ended December 31, 2025 (Q3 & 9MFY26).
For the third quarter of FY26, Zim Laboratories reported a Total Operating Income of ₹1,087 million, marking a significant 12.8% year-on-year growth compared to ₹963 million in Q3FY25. This growth was driven by a 7.4% QoQ and 6.4% YoY increase in the Pharma business, which contributed 72% (₹786 million) of the revenue. The Nutra business also saw substantial growth, increasing by 93% QoQ and 34% YoY, contributing 28% (₹300 million) to the revenue. The company's EBITDA for Q3FY26 stood at ₹145 million, an increase of 9.1% from ₹133 million in the same quarter last year, although EBITDA margins slightly decreased to 13.4% from 13.8%. Profit After Tax (PAT) turned positive at ₹44 million in Q3FY26, recovering from a loss of ₹4 million in Q2FY26, attributed to increased revenue. The export business continued to be a strong contributor, accounting for 88% of the revenue in Q3FY26, showing a 23% YoY increase.
For the nine months ended December 31, 2025 (9MFY26), Total Operating Income declined marginally by 0.4% to ₹2,691 million from ₹2,703 million in 9MFY25. EBITDA for 9MFY26 decreased by 15.5% to ₹280 million from ₹332 million in 9MFY25, with margins at 10.4%. PAT for 9MFY26 was ₹21 million, a significant decrease from ₹73 million in 9MFY25.
The company also provided an update on its CAPA Remediation plan, with most of the plan implemented and readiness for inspection expected from March 2026 onwards. The Board has approved, subject to approvals, the issuance of up to 47,64,497 equity shares at ₹73.46 per share to Florintree Trinex LLP on a preferential basis, aggregating up to ₹35 crore.
Investment plans include setting up a dedicated facility for Star Product 2 for EU/UK markets, a standalone nutraceutical facility for global markets, and investment in equipment and automation for CAPA Remediation. The company also highlighted R&D efforts, with ₹230 million allocated in 9MFY26 as R&D spend, representing 8.6% of Total Operating Income.
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