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.

Lyka Labs has provided an update on its ongoing amalgamation proceedings with Lyka Exports Limited. The National Company Law Tribunal (NCLT), Ahmedabad Bench, has issued a final opportunity to the Income Tax Department to submit their response regarding the amalgamation scheme.

Key Developments

• Final Opportunity: The NCLT has granted the Income Tax Department one week to file their reply concerning the amalgamation scheme between Lyka Exports Limited and Lyka Labs.

• Non-Compliance: The Income Tax Department failed to comply with the previous order dated October 9, 2025, which required them to submit their response.

• Next Hearing: The NCLT has scheduled the matter for further consideration on December 4, 2025.

• Order Receipt: Lyka Labs received a copy of the tribunal order on November 7, 2025.

Timeline of Events

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 outcome of this case could have significant implications for the corporate structure and operations of Lyka Labs.

Investors and stakeholders are advised to keep a close watch on further developments in this matter, as the resolution of this case may impact the company's future strategic decisions and financial position.