Fermenta Biotech Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing strong consolidated performance driven by robust growth in Vitamin D3 human nutrition segment. The Board of Directors approved these results at their meeting held on February 9, 2026.

Nine-Month Consolidated Performance

The company delivered impressive consolidated performance for the nine-month period, with significant growth across key metrics. The strong performance was primarily driven by the Vitamin D3 human nutrition segment.

Quarterly Consolidated Results

The third quarter showed mixed performance with consolidated revenue declining year-on-year but showing sequential improvement. The company reported consolidated revenue of ₹140.5 crore in Q3FY26.

Business Segment Performance

The nutrition business demonstrated strong growth momentum, particularly in the Vitamin D3 segments. Human nutrition volumes grew 46% while animal nutrition volumes increased 52% during the nine-month period.

Geographic Revenue Distribution

The company's revenue base remained well-diversified across geographies, with Europe showing increased contribution while maintaining strong presence in India and other markets.

Subsidiary Performance and Strategic Developments

The German toll manufacturing subsidiary reported strong growth with 9MFY26 revenue of ₹65.4 crore, up 147% YoY, and EBITDA of ₹11.2 crore, up 28% YoY. The US trading business subsidiary achieved revenue of ₹37.5 crore, up 4% YoY.

The Board approved a significant ₹110 crore capex at Dahej for plant-based Vitamin D3 production with Indian patent protection, green chemistry enzymes, and Vitamin D3 derivatives. Additionally, the Environment Division was transferred to wholly owned subsidiary Fermenta Environment Solutions Private Limited for ₹19 crore effective October 1, 2025.

Exceptional Items and Cost Factors

The company reported exceptional expenses of ₹2.19 crore in Q3FY26 related to new Labour Codes notified by the Government of India on November 21, 2025. The utilization of slow-moving semi-finished inventory resulted in a reversal of ₹2.0 crore during the current quarter, benefiting the cost structure.

Fermenta Biotech Limited has received a significant GST order from the Central Goods & Services Tax - Mandi Division, demanding a total amount of ₹2.71 crores including taxes, penalties, and interest. The company disclosed this development through a regulatory filing on December 31, 2025, pursuant to Regulation 30 of SEBI Listing Regulations.

GST Order Details

The order numbered 09/GST/AC/CGST-SML/DIV-MANDI/2024-25 was issued by the Office of The Deputy/Assistant Commissioner, Central Goods & Service Tax, Mandi Division. The comprehensive demand structure includes multiple components under various GST legislations.

Nature of Alleged Violation

The GST demand has been raised due to alleged contravention of Rule 96(10) of the Central Goods and Services Rules, 2017. The order was issued under Section 74 of the Central Goods and Services Tax Act, 2017, read with corresponding provisions of the Himachal Pradesh Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.

This regulatory action follows the company's earlier intimation dated April 17, 2025, indicating that this matter has been under consideration by the tax authorities for several months.

Company's Response Strategy

Fermenta Biotech has indicated that it is currently examining the order in detail and will file an appropriate response highlighting the company's contentions with the appropriate authority within the prescribed time limit. The company plans to seek legal advice before formulating its response strategy.

Financial Impact Assessment

Despite the substantial monetary demand, the company has stated that it does not foresee any material impact on its financial, operational, or other activities due to the demand, interest, and penalty. This assessment suggests the company may have grounds to contest the order or has adequate financial resources to manage the situation.

The company's regulatory filing demonstrates compliance with disclosure requirements while indicating confidence in its position regarding the GST matter. The final resolution will depend on the company's response and subsequent proceedings with the tax authorities.