Fermenta Biotech Limited reported a profit after tax of ₹70.3 crore for the financial year ended March 31, 2026, a decrease of 8% from the previous year. The decline reflects a high base effect from one-time real estate income of ₹44.6 crore recorded in FY25, compared to ₹1.6 crore in FY26. Excluding real estate, revenue grew 27% year-on-year to ₹546 crore, driven by strong performance in the Vitamin D3 Human Nutrition segment. The Board of Directors recommended a final dividend of ₹3.75 per share, subject to shareholder approval.

Financial Performance for FY26

Consolidated revenue, including real estate, stood at ₹547.8 crore for FY26, up 14% from the same year-ago period. EBITDA for the year was ₹122.2 crore, a marginal increase of 0.5% year-on-year. On a standalone basis, the net profit was ₹642.84 crore, while consolidated net profit was ₹702.54 crore. The statutory auditors, SRBC & Co. LLP, issued an unmodified opinion on the audited financial results.

Operational Highlights and Exceptional Items

The company recorded exceptional items amounting to ₹69.76 crore for the year. These included a reversal of provisions against receivables amounting to ₹9.07 crore and an expense of ₹2.19 crore recognized towards employee benefit obligations due to the implementation of new Labour Codes. Additionally, a provision of ₹3.1 crore related to semi-finished inventory consumed was reversed in the current quarter. Adjusted for these one-offs and real estate income, underlying profitability showed material improvement aligned with the 44% growth in EBITDA excluding real estate.

Segment and Geographical Performance

The Nutrition Business drove growth, with Vitamin D3 – Human Nutrition revenue rising 28% to ₹292.7 crore and Vitamin D3 – Animal Nutrition increasing 32% to ₹108.5 crore. Green Chemistry Solutions sales more than doubled to ₹15.9 crore. Geographically, India contributed 39% of revenue, while Europe and North America accounted for 30% and 13%, respectively. The German toll manufacturing subsidiary's revenue surged 101% to ₹76.6 crore.

Fermenta Biotech Limited granted 3,95,400 stock options to eligible employees under its Employee Stock Option Scheme 2025 (FBL ESOP 2025) at an exercise price of Rs. 83.67 per option. The Board of Directors also approved the re-appointment of Ms. Rajeshwari Datla as a Non-executive Director, subject to shareholder approval at the ensuing 74th Annual General Meeting (AGM). These decisions were taken during the Board meeting held on May 26, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Compensation Committee approved the grant of options, which are convertible into 3,95,400 equity shares of Rs. 5 each. The options will have a vesting period of a minimum of one year from the date of grant, and the exercise period for vested options will be a maximum of three years. The scheme complies with the SEBI (Share Based Employee Benefits) Regulations, 2021.

Ms. Rajeshwari Datla, who has been a non-executive director since 2005, is liable to retire by rotation at the upcoming AGM. The Board also approved her continuation as a Non-Executive Director, noting she has attained the age of 76. This continuation is subject to the approval of the company's members and complies with regulation 17(1A) of the Listing Regulations. Ms. Datla is the mother of Ms. Anupama Datla Desai, Executive Director, and Mr. Krishna Datla, Executive-Vice Chairman.

In a strategic move, the Board granted approval to apply for the listing and trading of the company's equity shares on the National Stock Exchange of India Limited via a direct listing route. Furthermore, the Board gave in-principle approval to its wholly-owned subsidiary, Fermenta Environment Solutions Private Limited (FESPL), to consider a private placement of equity shares. Upon successful allotment, FESPL will cease to be a wholly-owned subsidiary. The Board also approved the implementation of an ESOP for FESPL's employees, including those of the holding company.

Key ESOP Details