Krebs Biochemicals & Industries Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing continued operational challenges amid regulatory constraints. The company reported a net loss of ₹312.65 lacs for Q3FY26, representing an improvement from the ₹773.89 lacs loss recorded in the corresponding quarter of the previous year.

Financial Performance Overview

The company's revenue from operations declined significantly by 36.55% year-on-year to ₹727.42 lacs in Q3FY26 from ₹1,146.72 lacs in Q3FY24. This substantial revenue decline reflects the ongoing impact of operational disruptions on the company's business activities.

Expense Analysis

Despite the revenue decline, the company managed to control certain expense categories. Employee benefits expenses decreased to ₹269.25 lacs in Q3FY26 from ₹450.42 lacs in Q3FY24. However, finance costs increased to ₹179.29 lacs from ₹155.67 lacs in the same period, indicating higher borrowing costs.

Nine-Month Performance

For the nine-month period ended December 31, 2025, Krebs Biochemicals reported revenue from operations of ₹1,692.25 lacs compared to ₹3,721.14 lacs in the corresponding period of FY24, marking a decline of 54.52%. The net loss for the nine-month period was ₹1,459.35 lacs against ₹1,867.09 lacs in the previous year.

Operational Challenges

A critical factor affecting the company's performance is the continued closure of its Vizag manufacturing unit. The operations remain suspended pursuant to an order dated February 7, 2025, passed by the Andhra Pradesh Pollution Control Board. This regulatory action has significantly impacted the company's production capabilities and overall financial performance.

Balance Sheet Position

As of December 31, 2025, the company's total assets stood at ₹16,591.40 lacs compared to ₹16,903.56 lacs as of March 31, 2025. The company reported negative equity of ₹16,083.25 lacs, reflecting accumulated losses over time. Non-current borrowings increased to ₹16,500.00 lacs from ₹16,125.00 lacs, while current borrowings rose to ₹5,647.24 lacs from ₹5,095.84 lacs.

Earnings Per Share

The basic and diluted earnings per share for Q3FY26 stood at ₹-1.45 compared to ₹-3.59 for the corresponding quarter of the previous year. The paid-up equity share capital remained unchanged at ₹2,156.06 lacs with a face value of ₹10 per share.

The company operates in a single business segment and does not have any subsidiary, associate, or joint venture companies as of December 31, 2025. The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on February 9, 2026.

Krebs Biochemicals & Industries Limited has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing a continued struggle with profitability despite operational efforts.

Financial Performance

The company reported a loss before tax of Rs 1,146.71 lakh for the half-year period, showing an improvement from the loss of Rs 2,093.20 lakh in the corresponding period last year. Revenue from operations stood at Rs 1,977.70 lakh for the half-year.

Key financial highlights for H1 2025:

Operational Insights

The company's cash position has weakened, with cash and cash equivalents decreasing to Rs 12.71 lakh as of September 30, 2025, from Rs 14.16 lakh at the beginning of the year. The net cash flow from operating activities remained negative at Rs 167.56 lakh, indicating ongoing operational challenges.

Manufacturing Unit Closure

The operations of the company's Vizag manufacturing unit continued to be closed pursuant to an order dated February 7, 2025, passed by the Andhra Pradesh Pollution Control Board. This closure likely contributes to the company's financial strain.

Board Approval and Auditor's Review

The Board of Directors approved these results in a meeting held on November 4, 2025. The statutory auditors have carried out a review of the financial results and issued an "Unmodified Report," indicating that the financial statements fairly represent the company's financial position.

Company Operations

Krebs Biochemicals & Industries Limited operates in a single business segment and does not have any subsidiaries, associates, or joint venture companies as of September 30, 2025.

While there has been a reduction in losses compared to the previous year, the negative cash flow and continued closure of the Vizag manufacturing unit present significant challenges for the company's operations and financial performance.