Vanta Bioscience Limited filed its 10th Annual Report for FY26 under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, reporting a return to profitability on both standalone and consolidated bases for the financial year ended March 31, 2026.

Financial performance highlights

The company's standalone revenue from operations rose to Rs. 18,163.64 thousand in FY26 from Rs. 11,274.22 thousand in FY25, an increase of approximately 61.11%. The turnaround was significant: standalone Profit Before Tax stood at Rs. 252.58 thousand against a Loss Before Tax of Rs. 27,190.57 thousand in the previous year, while Profit After Tax came in at Rs. 1,198.11 thousand compared to a Loss After Tax of Rs. 26,594.08 thousand in FY25.

The following table summarises the key standalone and consolidated financial metrics (Rs. in Thousands, except EPS):

On a consolidated basis, which includes wholly owned subsidiary Vanta Clinical Research Limited, revenue from operations was Rs. 18,163.64 thousand in FY26 versus Rs. 11,274.22 thousand in FY25. Consolidated Profit After Tax was Rs. 1,082.55 thousand against a Loss After Tax of Rs. 26,708.60 thousand in FY25. Consolidated basic EPS stood at Rs. 0.15 versus negative Rs. 4.23 in FY25.

Key financial ratios

The improvement in profitability was reflected across several key ratios. The standalone current ratio improved from 0.56 in FY25 to 1.28 in FY26, while the operating profit margin moved from (184.41)% to 44.19%. The net profit margin on a standalone basis improved from (235.88)% to 6.60%, and return on equity improved from (42.13)% to 1.68%.

Share capital and preferential allotment

During FY26, the Board allotted 8,00,000 equity shares of face value Rs. 10/- each at a premium of Rs. 40/- each on a preferential basis, upon conversion of unsecured loans, to promoters Mr. Dopesh Raja Mulakala (4,00,000 shares) and Mr. S. Chandra Sekhar Rao (4,00,000 shares). Consequent to this allotment, the paid-up equity share capital increased to Rs. 7,11,20,000/- comprising 71,12,000 equity shares of Rs. 10/- each as at March 31, 2026, from Rs. 6,31,20,000/- comprising 63,12,000 shares at the start of the year.

AGM and board agenda

The 10th Annual General Meeting is scheduled for Wednesday, September 30, 2026 at 10:00 AM at 197, Arun Khetarpal Road, Uma Nagar Colony, Sikh Village, Bowenpally, Secunderabad - 500009, Telangana. The AGM agenda includes adoption of audited standalone and consolidated financial statements for FY26, retirement by rotation of Managing Director Dopesh Raja Mulakala, and his proposed re-appointment as Managing Director for a further term of three years with effect from April 18, 2026 at a remuneration of up to Rs. 2,50,000/- per month. The remote e-voting period runs from 9:00 AM on September 27, 2026 to 5:00 PM on September 29, 2026, with a record date of September 23, 2026.

Subsidiary and auditor observations

Vanta Clinical Research Limited, the wholly owned subsidiary incorporated on September 12, 2018, had not commenced commercial operations as at March 31, 2026. The subsidiary reported a Loss After Tax of Rs. 115.57 thousand for the year. Statutory auditors M/s. Mathesh & Ramana, Chartered Accountants, issued an unmodified opinion but drew attention via Emphasis of Matter to non-provision for gratuity in the standalone financial statements, and in the consolidated statements to the subsidiary's non-commencement of operations and non-provision for gratuity by both the holding company and its subsidiary. The secretarial audit report noted delays in filing certain statutory forms, delays in submission of financial results and shareholding pattern under SEBI (LODR) Regulations, and outstanding statutory dues including provident fund, professional tax, and TDS outstanding for more than six months. The company stated it is taking steps to regularise pending compliances. No dividend was declared for FY26.

Research and development expenditure

During FY26, the company spent Rs. 68,630.73 thousand towards Research & Development, which has been capitalised as intangible assets. Foreign exchange earnings in terms of actual inflows during the year were Rs. 2,305.68 thousand, with nil foreign exchange outgo. A foreign exchange gain of Rs. 1,584.91 thousand was recorded during the year.

Artificial intelligence is expanding employee capabilities beyond technical teams, creating significant security challenges for companies struggling to track access by humans and AI agents.

Jeremy Epling, chief product officer at Vanta Bioscience , described the shift in an interview, noting that AI allows employees to build software and automate tasks with minimal technical expertise. This democratization of building capabilities is fundamentally altering how organizations approach cybersecurity and compliance.

Rising Builder Roles

Vanta has observed a sharp increase in non-traditional technical roles among its more than 16,000 customers. Epling stated that builder roles, including go-to-market engineers and governance, risk and compliance (GRC) engineers, have increased by more than 300% year over year. This growth reflects businesses using AI to accelerate development and automate workflows.

However, this expansion creates new security gaps. Epling noted that security through obscurity is no longer viable because AI agents can find ways to access data or perform unexpected actions. Security teams now face the challenge of monitoring not just employees, but potentially thousands of autonomous systems operating on their behalf.

Shadow AI Concerns

The company identified "shadow AI" as an emerging risk, where employees sign up for AI services without established security vetting. In some cases, employees may feed company information into unvetted tools. This raises the prospect of organizations needing to monitor an expanding network of AI systems that can make decisions and act with increasing autonomy.

Epling warned that organizations could eventually have dramatically more agents than employees, creating a severe visibility problem for security teams. He predicted that the amount of automation will "fundamentally change everything" and create chaos that may overwhelm users.

Vanta’s AI Adoption

Vanta is also deploying AI to automate its own security and compliance work. Its Vanta agent can analyze security programs, assess vendors, answer questionnaires, and identify risks. The company has introduced integrations, APIs, an MCP server, and custom agents for customer workflows.

Daily users of Vanta’s agent have increased by more than 250% this year, while usage of its MCP server has grown 50-fold, according to Epling. This internal adoption mirrors the broader trend of companies granting AI systems greater authority to act on their behalf.

What the Numbers Show

The divergence between the 300% rise in customer builder roles and the 250% growth in Vanta’s own agent usage highlights a dual dynamic: customers are rapidly deploying AI for development while simultaneously relying on automated tools for governance. This suggests that as AI lowers the barrier to entry for building software, the demand for automated compliance monitoring scales proportionally to manage the resulting complexity.