Zenotech Laboratories Limited reported a narrowed standalone net loss of ₹45.55 lakh for the quarter ended June 30, 2026 (Q1FY26), compared to a loss of ₹98.96 lakh in the corresponding period of FY25. The Hyderabad-based pharmaceutical company posted revenue from operations of ₹959.64 lakh, an 11% increase year-on-year, driven by consistent other operating income primarily derived from rentals for its Biotech facility and equipment leased to Sun Pharmaceutical Industries Limited. This improvement signals early signs of stabilization in cash flows, although operational pressures remain evident in the expense structure.

The Board of Directors approved the unaudited standalone financial results on July 28, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors G S K A & Co., who issued an unmodified review conclusion under Standard on Review Engagements (SRE) 2410. The company also announced that its 37th Annual General Meeting will be held on September 25, 2026, via videoconferencing.

Financial Performance Highlights

Total income for the quarter stood at ₹1,104.79 lakh, up from ₹1,023.16 lakh in Q1FY25. While revenue from operations grew to ₹959.64 lakh from ₹863.91 lakh, other operating income remained stable at ₹101.58 lakh against ₹100.41 lakh previously. Other income declined to ₹43.57 lakh from ₹58.84 lakh.

Expenses rose 30% year-on-year to ₹1,164.86 lakh, largely due to increased employee benefit expenses (₹491.63 lakh vs ₹353.56 lakh) and other expenses (₹483.00 lakh vs ₹364.55 lakh). Depreciation and amortization also increased to ₹190.23 lakh from ₹177.37 lakh. Despite the rise in expenses, the pre-tax position improved significantly from a profit of ₹127.68 lakh in Q1FY25 to a loss of ₹60.07 lakh in Q1FY26, aided by a lower tax expense of ₹(14.52) lakh compared to ₹28.72 lakh in the prior year.

What the Numbers Show

The narrowing of the net loss despite a 30% surge in total expenses highlights the resilience of Zenotech’s core revenue streams. The stability in other operating income, which constitutes roughly 10% of total income, underscores the importance of its asset-leasing strategy to Sun Pharmaceutical Industries Limited. However, the widening gap between total income growth (8%) and expense growth (30%) indicates pressure on operational margins, with employee costs being the primary driver of this divergence. The company’s ability to manage these rising operational costs will be critical for returning to profitability in subsequent quarters.

The company noted that it has no subsidiaries, joint ventures, or associates within the definition of Ind AS 110, as overseas entities in Brazil and the USA were cancelled or revoked, and filings for Nigeria are pending. Consequently, consolidated financial statements are not applicable. Shareholders are advised to update their information with depositories or the RTA to receive the AGM notice.

Zenotech laboratories Limited has issued a clarification to BSE Limited regarding recent significant movement in its stock price, confirming that the company remains in full compliance with regulatory disclosure requirements and has not withheld any material information.

BSE Query and Company Response

The clarification came in response to BSE's email dated April 09, 2026, which noted significant price movement in Zenotech Laboratories' stock and requested the company to provide any information or announcements that might explain the price behavior under Regulation 30 of SEBI (LODR) Regulations, 2015.

Compliance Confirmation

In its formal response, Zenotech Laboratories emphasized its consistent adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company explicitly confirmed compliance with Regulation 30 requirements, which mandates disclosure of material events and information that could impact stock price behavior.

The company stated that it has not withheld any material information or events that, in its opinion, would have a bearing on the price behavior of its stock. This confirmation addresses BSE's specific query about potential undisclosed developments that might explain the recent price movement.

Corporate Details

The clarification was signed by Abdul Gafoor Mohammad, Company Secretary & Compliance Officer, who holds ICSI Membership No. A22331. The response was digitally signed and submitted to BSE Limited at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai.

Company Information

Zenotech Laboratories Limited operates from its registered office and factory located at Survey No. 250-252, Turkapally Village, Genome Valley Road, Shamirpet Mandal, Medchal-Malkajgiri District, Hyderabad. The company maintains its commitment to regulatory compliance and transparent communication with stock exchanges and investors.