Fermenta Biotech reported a consolidated net profit of ₹95.3 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 56% decline year-on-year. However, the company’s standalone performance showed resilience, with net profit rising 7% YoY to ₹149.9 crore. The significant drop in consolidated profitability was primarily attributed to a 40% fall in Vitamin D3 – Animal Nutrition realisations and the absence of ₹2.7 crore in non-recurring insurance income that had boosted the prior year’s base. Consolidated revenue, including real estate value unlocking, stood at ₹126.2 crore, down 13% YoY but flat quarter-on-quarter.

The standalone entity recorded total income from operations of ₹116.7 crore, down 9% YoY from ₹127.9 crore in Q1FY26. Despite the revenue contraction, standalone profit before tax remained robust at ₹201.5 crore, compared to ₹227.2 crore in the corresponding period last year. This contrasts with the consolidated profit before tax, which fell to ₹146.9 crore from ₹280.9 crore YoY. Diluted earnings per share on a consolidated basis were ₹3.34, while basic EPS stood at ₹3.40.

Segment Performance

The human nutrition segment remained the largest contributor, accounting for 61% of consolidated revenue with sales of ₹76.5 crore. While human nutrition volumes rose 18% QoQ, revenue in this segment fell 10% YoY to ₹76.5 crore. In contrast, the animal nutrition segment faced headwinds, with revenue dropping 41% YoY to ₹12.6 crore due to a 40% decline in average realisations. Volumes in animal nutrition were down 52% QoQ and 20% YoY.

Other business lines showed growth. Other APIs and Intermediates revenue grew 18% YoY to ₹11.6 crore, while Green Chemistry Solutions / Enzymes rose 15% YoY to ₹2.3 crore. The 'Others' line within nutrition grew 28% YoY to ₹11.0 crore. Environmental Solutions revenue surged 619% QoQ to ₹6.0 crore, though it declined 8% YoY.

Geographical Shifts

India emerged as a stronger market, contributing 47% of consolidated revenue (excluding real estate) in Q1FY27, up from 35% a year earlier and 38% in the preceding quarter. Europe’s share declined to 23% from 33% YoY, while North America accounted for 10%. This shift reflects growing domestic demand and successful customer acquisitions in smaller business lines.

Cost Structure Dynamics

Raw material costs improved to 35% of revenue in Q1FY27, against 37% in FY26 and 38% in FY25, reflecting an improved sourcing mix. However, employee costs rose to 19% of revenue, compared to 16% in FY26, when capacity expansion added heads ahead of the Dahej scale-up. Manufacturing expenses remained stable at 12%, consistent with FY26 levels but lower than the 15% recorded in FY25. Finance costs held steady at 2% of revenue, indicating continued deleveraging efforts.

What the Numbers Show

The divergence between standalone and consolidated results is notable. While the standalone entity managed to increase net profit by 7% YoY despite a 9% revenue drop, the consolidated bottom line contracted sharply by 56%. This suggests that inter-company eliminations or specific subsidiary losses (likely driven by the volatile animal nutrition segment) are weighing heavily on the group numbers. The rise in India’s revenue share to 47% signals a strategic pivot towards domestic markets, reducing reliance on volatile international segments like Europe, which saw its share drop by 10 percentage points YoY.

Operational Updates

Prashant Nagre, Managing Director, stated that the quarter was about “building rather than harvesting,” emphasizing growth in emerging segments like Green Chemistry and Other APIs. Post-quarter, Fermenta received FSSAI approval on July 6, 2026, for VITADEE Green®, its plant-source Vitamin D3, for use in health supplements and food fortification. This approval opens access to India’s large vegetarian consumer base. Additionally, the company ranked 7th nationwide in the Top 50 category of India’s Great Mid-size Workplaces™ 2026.

Shareholders of Fermenta Biotech Limited overwhelmingly approved a final dividend of ₹3.75 per equity share and the reappointment of Non-Executive Director Ms. Rajeshwari Datla during the company’s 74th Annual General Meeting (AGM) held on August 11, 2026. The payout, representing a 75% dividend on the face value of ₹5 per share for the financial year ended March 31, 2026, received 99.9999% support from votes polled. Eligible shareholders will receive the dividend on or before August 21, 2026, based on the record date of August 05, 2026.

The meeting, conducted via Video Conferencing or Other Audio-Visual Means (VC/OAVM), saw a total voting participation of 70.56% of outstanding shares. Out of 29,430,987 total shares held as on the cut-off date, 20,766,589 votes were polled across remote e-voting, ballot, and e-voting at the meeting. All seven resolutions proposed in the notice were passed with the requisite majority, as confirmed by the Scrutinizer’s report submitted by V. N. Deodhar & Co., Practicing Company Secretaries.

Key Resolutions Passed

The Board of Directors secured shareholder approval for the following matters:

Voting Breakdown

Voting rights were determined based on paid-up shares registered as on August 05, 2026. The promoter and promoter group held 18,861,009 shares (64.09% of total shares) and voted in favor of all resolutions with 100% support. Public institutions held 121,451 shares and also voted unanimously in favor. Public non-institutional shareholders held 10,448,527 shares; while their support was overwhelming, they cast a small number of dissenting votes on specific resolutions.

For the reappointment of Ms. Rajeshwari Datla, public non-institutional shareholders cast 412 votes against the resolution out of 1,899,740 polled, resulting in 99.9783% support from this category. Similarly, for the related-party transactions resolution, public institutions cast 397 votes against, while public non-institutions cast 12 votes against, leading to an overall support of 99.9763%. The dissenting votes were negligible relative to the total poll, indicating strong shareholder consensus on governance and operational matters.

Governance and Compliance

The proceedings adhered to Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Pradeep Chandan, Chairman, declared the quorum present and called the meeting to order. Mr. Varadvinayak Khambete, Company Secretary and Head-Legal, facilitated the voting process. Remote e-voting was conducted by MUFG Intime India Private Limited from August 08, 2026, to August 10, 2026. The Scrutinizer, Mr. V. N. Deodhar, confirmed that votes were unblocked in the presence of independent witnesses CA. Hrushikesh V. Deodhar and Mr. Santosh M. Kelkar. The audited Standalone and Consolidated Financial Statements for FY26 were adopted by the members.