Zenlabs Ethica Limited, a prominent player in the pharmaceutical sector, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating significant growth across key financial metrics.

Financial Highlights

The company's revenue for Q1 FY2026 stood at ₹957.50 crore, marking a substantial increase of 21.9% compared to ₹785.00 crore in the corresponding quarter of the previous year. This impressive top-line growth underscores the company's strong market position and effective business strategies.

Zenlabs Ethica's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a notable surge of 29.4%, reaching ₹212.98 crore. The EBITDA margin expanded by 130 basis points to 22.2%, reflecting improved operational efficiency and cost management.

The company's bottom line witnessed a remarkable uptick, with Profit After Tax (PAT) soaring by 50.9% to ₹131.90 crore, compared to ₹87.40 crore in the same period last year. This substantial increase in profitability demonstrates the company's ability to translate revenue growth into enhanced shareholder value.

Operational Achievements

During the quarter, Zenlabs Ethica made significant strides in its product portfolio and manufacturing capabilities:

• Launched three new products in domestic formulations, expanding its market offerings
• Filed two new Abbreviated New Drug Applications (ANDAs) with the U.S. Food and Drug Administration (USFDA), showcasing the company's commitment to international market expansion
• Received approval for one generic product, further strengthening the company's product pipeline
• Commenced commercial production at the new oral solid dosage facility in Baddi, enhancing manufacturing capabilities
• Achieved 78% capacity utilization across manufacturing facilities, indicating efficient resource management

Financial Position

Zenlabs Ethica maintains a strong financial position with net cash of ₹205.98 crore, providing a solid foundation for future growth initiatives and potential investments.

Transparency and Disclosure

In line with its commitment to transparency, Zenlabs Ethica has published its financial results in the Financial Express and Dainik Tribune newspapers. The company has also implemented a QR code system, allowing stakeholders easy access to the complete financial results, demonstrating its dedication to clear and accessible financial reporting.

Conclusion

Zenlabs Ethica Limited's Q1 FY2026 results reflect a company on a strong growth trajectory, with impressive increases in revenue, profitability, and operational efficiency. The combination of new product launches, regulatory filings, and enhanced manufacturing capabilities positions the company well for sustained growth in the competitive pharmaceutical market.

Investors and stakeholders can view these results as indicative of the company's robust business model and effective execution of its growth strategies. As Zenlabs Ethica continues to expand its product portfolio and improve its operational metrics, it remains a company to watch in the pharmaceutical sector.

Zenlabs Ethica Limited, a pharmaceutical trading company, has reported a decline in net profit for the quarter ended June 30, while also implementing new insider trading policies to enhance corporate governance.

Financial Performance

The company reported a net profit of ₹3.33 crore for the first quarter, down from ₹4.18 crore in the same period last year. This represents a year-on-year decrease of 20.33% in net profit.

Revenue from operations also saw a decline, falling to ₹1,147.72 crore from ₹1,236.26 crore in the corresponding quarter of the previous year, marking a decrease of 7.16%.

The company's total income for the quarter stood at ₹1,148.15 crore, compared to ₹1,236.54 crore in the same period last year.

Key Financial Metrics

The basic and diluted earnings per share (EPS) for the quarter stood at ₹0.05, compared to ₹0.06 in the previous year.

New Insider Trading Policies

In a significant move towards strengthening its corporate governance framework, Zenlabs Ethica's Board of Directors has approved new insider trading policies. These include:

1. Code of Practices and Procedures for fair disclosure of unpublished price sensitive information (UPSI)
2. Code of internal procedures and conduct for regulating, monitoring, and reporting of trading by insiders

The new policies establish:

• Trading window closures
• Structured digital databases for information sharing
• Compliance frameworks for regulating insider trading

These measures aim to ensure fair disclosure of UPSI and regulate trading by insiders, aligning with the Securities and Exchange Board of India (SEBI) regulations.

Company Overview

Zenlabs Ethica Limited operates as a single-segment entity engaged in pharmaceutical formulation trading. The company has a paid-up equity share capital of ₹651 crore.

Despite the challenging quarter, Zenlabs Ethica continues to focus on its core business while strengthening its corporate governance practices. The implementation of new insider trading policies demonstrates the company's commitment to transparency and regulatory compliance in its operations.