Fermenta Biotech Limited reported a 14% increase in consolidated revenue to ₹548 crore for the financial year 2025-26, driven by strong demand for Vitamin D3. Net profit for the year stood at ₹70 crore, while free cash flow more than tripled to ₹62 crore.

On a consolidated basis, total income rose to ₹548 crore from ₹481 crore in the previous year. Profit after tax was ₹70 crore, compared to ₹76 crore in FY25. Operating cash flow more than doubled to ₹93 crore from ₹41 crore, and free cash flow surged to ₹62 crore from ₹19 crore. The company’s net debt roughly halved, and the debt-to-equity ratio improved to 0.27 from 0.30.

The Board of Directors has recommended a final dividend of ₹3.75 per equity share for the financial year 2025-26, subject to shareholder approval. This represents an increase from the previous year’s ₹2.50 per share. The proposed dividend will result in a cash outflow of ₹1103.66 lakh.

Fermenta Biotech’s growth was underpinned by strong performance in its core nutrition business. Vitamin D3 Human Nutrition grew 29% year-on-year, while Green Chemistry recorded its highest sales in years. The company also secured a process patent for plant-source Vitamin D3 and approved a ₹110 crore capital expenditure to expand capacity for plant-source Vitamin D3, Calcifediol and biocatalysis enzymes.

The company transferred its Environment Division to a wholly-owned subsidiary, Fermenta Environment Solutions Private Limited, effective October 1, 2025, for ₹19 crore. This move allows the parent company to focus on its core chemistry businesses.

Fermenta Biotech’s shares are listed on the BSE Limited. The 74th Annual General Meeting is scheduled for August 11, 2026.

Fermenta Biotech Limited announced that its subsidiary, Fermenta Environment Solutions Private Limited (FESPL), will cease to be a wholly-owned subsidiary following a share subscription agreement with Aasava Management Services LLP. The agreements, signed on July 20, 2026, involve the issuance of 7,17,949 equity shares in FESPL to Aasava for a total subscription amount of ₹86,15,388. This strategic move is expected to be value accretive for FESPL and aligns the interests of Aasava, a long-time marketing associate and consultant, with the subsidiary's growth.

Post-allotment, Fermenta Biotech will retain a 91.76% shareholding in FESPL. The transaction is not classified as a slump sale or a related party transaction, and FESPL does not qualify as an 'Undertaking' under Section 180 of the Companies Act, 2013, or Regulation 37A of the SEBI Listing Regulations. The investment by Aasava reflects confidence in the environment solutions business and its expansion strategy.

The subsidiary was incorporated on May 1, 2025. According to the audited financial statements as on March 31, 2026, FESPL reported a total revenue of ₹400.53 lakhs, which accounted for 0.73% of Fermenta Biotech's consolidated figures. The net worth of FESPL stood at ₹340.24 lakhs, representing 0.85% of the consolidated net worth of the parent company.

The allotment of equity shares to Aasava is anticipated to be completed by or before July 27, 2026. No consideration will be received by Fermenta Biotech from this transaction, as the subscription amount is payable directly to FESPL. Aasava Management Services LLP is registered under the Limited Liability Partnership Act, 2008, and is not part of the promoter or promoter group of Fermenta Biotech.

Key Financials of FESPL

Transaction Details