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 Limited , a pharmaceutical company, has announced its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported a net loss and a decline in revenue compared to the same period last year.

Financial Performance

Lyka Labs reported a net loss of Rs 362.68 lakhs for the quarter, compared to a profit of Rs 247.29 lakhs in the same quarter of the previous year. The company's revenue from operations declined to Rs 3,297.04 lakhs from Rs 4,115.51 lakhs year-on-year, representing a decrease of 19.89%.

Key Highlights

1. Expected Credit Loss Provision: The company recognized an Expected Credit Loss (ECL) provision of Rs 484.03 lakhs for international trade receivables during the quarter.

2. Preference Share Redemption: During the quarter, 1,08,570 preference shares worth Rs 108.57 lakhs were redeemed.

3. Earnings Per Share: The earnings per share (EPS) stood at negative Rs 1.02 compared to positive Rs 0.69 in the previous year's quarter.

4. Board Decisions: The Board of Directors approved the quarterly financial results and decided to defer the decision on shifting the registered office.

Consolidated Results

On a consolidated basis, Lyka Labs reported a net loss of Rs 321.44 lakhs for the quarter, compared to a profit of Rs 191.13 lakhs in the same period last year. The consolidated revenue from operations was Rs 3,666.05 lakhs, down from Rs 4,115.51 lakhs in Q2 FY25.

Management Commentary

Kunal Gandhi, Managing Director & CEO of Lyka Labs Limited, stated, "The company has faced challenges this quarter, reflected in our financial performance. We are actively assessing the situation and implementing measures to improve our operational efficiency and financial position."

Future Outlook

While the company has deferred the decision on shifting its registered office, it continues to evaluate strategic options for future growth. The management is focused on addressing the challenges in international trade receivables, as evidenced by the significant ECL provision made during the quarter.

Lyka Labs operates in the pharmaceutical sector, which remains a critical industry. The company's future performance will likely depend on its ability to navigate market challenges, improve revenue streams, and manage operational costs effectively.