Lyka Labs Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, revealing a challenging performance with declining revenue and profitability. The pharmaceutical company's Board of Directors approved the unaudited financial results in their meeting held on January 29, 2026.

Standalone Financial Performance

The company's standalone operations showed mixed results for the third quarter of FY26. Revenue from operations declined 6.6% year-over-year, reflecting the challenging market conditions faced by the pharmaceutical sector.

The company's net profit experienced a sharp decline of 89.6% to ₹27.99 lakhs in Q3FY26 compared to ₹269.85 lakhs in the corresponding quarter of the previous year. This significant drop in profitability was primarily attributed to higher operational expenses and reduced operational efficiency.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025, presented even more challenging results for Lyka Labs. The company reported a substantial decline in revenue and moved into loss territory.

The nine-month performance highlighted the company's operational challenges, with revenue from operations declining 10.9% to ₹9,287.46 lakhs from ₹10,418.09 lakhs in the previous year. The company reported a net loss of ₹255.14 lakhs compared to a profit of ₹692.10 lakhs in the same period last year.

Consolidated Results

On a consolidated basis, which includes subsidiaries Lyka BDR International Limited and Lyka Exports Limited, the company's performance was similarly challenging. Consolidated revenue from operations declined to ₹3,072.80 lakhs in Q3FY26 from ₹3,379.76 lakhs in Q3FY25. The consolidated net loss stood at ₹15.12 lakhs compared to a profit of ₹270.40 lakhs in the corresponding quarter of the previous year.

Operational Highlights

During the quarter under review, the company redeemed 1,08,570 preference shares on September 30, 2025, paying a premium of ₹217.14 lakhs, which was adjusted against the General Reserve. Additionally, effective November 21, 2025, the Government of India consolidated 29 existing labour legislations into four Labour Codes, resulting in a one-time incremental impact of ₹11.41 lakhs under Employee Benefit Expenses.

Corporate Governance

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors. The statutory auditors D. Kothary & Co. expressed an unqualified opinion on both standalone and consolidated unaudited financial results. The company operates primarily in the pharmaceuticals segment and maintains its paid-up equity share capital at ₹3,569.00 lakhs with a face value of ₹10 per share.

Lyka Labs has provided an update on its ongoing amalgamation proceedings with Lyka Exports Limited. The National Company Law Tribunal (NCLT), Ahmedabad Bench, has reserved its order on the scheme of amalgamation between Lyka Exports Limited and Lyka Labs Limited after the Income Tax Department confirmed no objection to the merger application.

Key Developments

• Order Reserved: The NCLT has reserved its order on the amalgamation scheme between Lyka Exports Limited and Lyka Labs.

• Income Tax Department Clearance: The Income Tax Department has confirmed no objection to the merger application.

• Procedural Milestone: This development marks a key procedural milestone in the companies' merger process.

The company has made this information available on its website ( www.lykalabs.com ) and has duly informed the stock exchanges as per regulatory requirements.

This development is a crucial step in the ongoing process of the proposed amalgamation between Lyka Exports Limited and Lyka Labs. The reservation of the order by the NCLT, following the Income Tax Department's clearance, signifies progress in the merger proceedings.

Investors and stakeholders are advised to keep a close watch on further developments in this matter, as the final outcome of this case could have implications for the corporate structure and operations of Lyka Labs.

The company awaits the final order from the NCLT, which will determine the next steps in the amalgamation process. This decision is expected to provide clarity on the future direction of the merger between Lyka Exports Limited and Lyka Labs Limited.