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 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.