Gujarat Terce Laboratories Reports Record EBITDA Despite Revenue Dip in Q2 FY26

Gujarat Terce Laboratories Limited , a pharmaceutical company with a presence in 13 states across India, has reported mixed financial results for the second quarter of fiscal year 2026. The company achieved its highest-ever EBITDA performance, despite a slight decline in revenue.

Financial Highlights

Particulars (in Rs. lacs)	Q2 FY26	Q2 FY25	YoY Change
Revenue	1,292.63	1,330.12	-2.82%
EBITDA	194.46	174.21	+11.62%
Net Profit	140.36	148.22	-5.30%
EBITDA Margin	15.04%	13.10%	+194 bps
PAT Margin	10.86%	11.14%	-28 bps

Revenue and Profitability

Gujarat Terce Laboratories reported a revenue of Rs 1,292.63 lacs for Q2 FY26, compared to Rs 1,330.12 lacs in the same quarter of the previous year, marking a 2.82% decrease. The company attributes this reduction to a planned scale-down of low-margin factory B2B sales and rationalization of certain non-profitable operations.

Despite the revenue decline, the company achieved its highest EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) performance at Rs 194.46 lacs, representing an 11.62% increase from Rs 174.21 lacs in Q2 FY25. This improvement in operational efficiency is reflected in the EBITDA margin, which expanded from 13.10% to 15.04%.

Net profit for the quarter stood at Rs 140.36 lacs, down 5.30% from Rs 148.22 lacs in the corresponding quarter of the previous year. The PAT (Profit After Tax) margin slightly decreased to 10.86% from 11.14%.

Operational Highlights

The management highlighted that the company has completed three quarters without external funding, operating through internal accruals and improved cash discipline. This demonstrates the company's focus on financial prudence and operational efficiency.

Gujarat Terce Laboratories currently operates 8 leading brands across 134 products. The company has established a presence in 13 states and 224 districts through a network of 385 stockists and 147 medical representatives.

Balance Sheet and Cash Flow

As of September 30, 2025, the company's total assets stood at Rs 2,442.56 lacs, with a mix of non-current and current assets. The company's equity position improved, with total equity increasing to Rs 783.76 lacs from Rs 647.75 lacs as of March 31, 2025.

The cash flow statement reveals that the company generated a net cash flow of Rs 101.06 lacs from operating activities in the first half of FY26, indicating positive operational cash generation.

Gujarat Terce Laboratories' strategic focus on improving operational efficiency and financial discipline appears to be yielding results, as evidenced by the record EBITDA performance. However, the company faces challenges in revenue growth, which it aims to address through its ongoing rationalization of non-profitable operations and focus on higher-margin products.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.04%	-4.37%	-14.33%	-18.44%	-45.46%	+500.41%

Gujarat Terce Laboratories Limited , a pharmaceutical company, has released its financial results for the first quarter, revealing a narrowed loss and a decline in revenue. The company also announced significant changes to its board committees.

Financial Performance

Gujarat Terce Laboratories reported a net loss of Rs 4.35 lakhs for the quarter, an improvement from the Rs 7.76 lakhs loss recorded in the same period last year. However, the company's revenue from operations saw a decline, dropping to Rs 1,085.36 lakhs from Rs 1,188.88 lakhs year-over-year.

The company's financial results, as per the unaudited standalone financial statement, show:

Particulars (Rs. in Lakhs)	Q1 2025-26	Q1 2024-25
Revenue from Operations	1,085.36	1,188.88
Other Income	9.48	7.33
Total Revenue	1,094.84	1,196.21
Total Expenses	1,101.94	1,203.15
Profit/(Loss) before Tax	(7.10)	(6.94)
Net Profit/(Loss)	(4.35)	(7.76)

The earnings per share (EPS) for the quarter stood at -Rs 0.06, compared to -Rs 0.10 in the corresponding quarter of the previous year.

Board Committee Reconstitution

The Board of Directors approved the reconstitution of three key committees:

Audit Committee:
- Chairperson: Ms. Avani V. Patel
- Members: Mr. Surendrakumar P. Sharma, Mr. Viplav S. Khamar, Ms. Chhayaben Shah, and Mr. Aalap N. Prajapati
Nomination and Remuneration Committee (NRC):
- Chairperson: Mr. Surendrakumar P. Sharma
- Members: Ms. Avani V. Patel, Mr. Viplav S. Khamar, and Ms. Chhayaben Shah
Stakeholders' Relationship Committee (SRC):
- Chairperson: Mr. Viplav S. Khamar
- Members: Ms. Chhayaben Shah, Mr. Aalap N. Prajapati, and Mr. Natwarbhai P. Prajapati

These changes in committee compositions aim to ensure compliance with the provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Auditor's Review

The statutory auditors, M.A. Shah & Co., provided an unmodified opinion on the quarterly results. Their limited review report stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

The Board meeting to approve these results and changes commenced at 4:00 p.m. and concluded at 5:30 p.m. on August 11, 2025.

Gujarat Terce Laboratories continues to operate in the pharmaceutical segment, and these results reflect its performance in a challenging market environment. The company's efforts to streamline its governance structure through committee reconstitutions may be seen as a step towards enhancing its operational efficiency and corporate governance practices.