Zenotech Laboratories Limited announced its unaudited standalone financial results for the quarter ended December 31, 2025, alongside significant board changes during its meeting held on January 23, 2026.

Financial Performance Overview

The company delivered a strong financial performance in Q3FY26, with key metrics showing improvement across several parameters:

For the nine months ended December 31, 2025, total income reached ₹3,544.55 lakhs compared to ₹3,197.16 lakhs in the corresponding period last year, representing an increase of 10.87%. However, net profit for the nine-month period was ₹207.87 lakhs, lower than ₹432.99 lakhs in the previous year.

Exceptional Items Impact

The company reported exceptional items of ₹29.89 lakhs (expense) in Q3FY26, primarily due to increased gratuity and leave encashment liability arising from the implementation of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate twenty-nine existing labour laws and introduce enhanced employee benefits.

Board Leadership Changes

The Board approved the appointment of Mr. Nikkhil Venilal Kothhari (DIN: 11501373) as Additional Independent Director for a five-year term, effective January 23, 2026, subject to shareholder approval. Mr. Kothhari brings extensive experience as a Fellow Chartered Accountant with a Ph.D. in Bancassurance from Mumbai University and 40 years of professional experience in accounting, taxation, audit, and regulatory compliance.

Simultaneously, Mr. Chintan Jitendra Shah's second tenure as Independent Director concluded on January 26, 2026. The Board acknowledged his valuable contributions during his tenure as Independent Director and Chairman of the Nomination and Remuneration Committee.

Committee Reconstitution

Effective January 27, 2026, the company reconstituted all three board committees:

Audit Committee:

• Chairperson: Smt. Jagruti Prashant Sheth (Independent Director)
• Members: Mr. Jignesh Anantray Goradia (Director), Mr. Premal Hemant Gandhi (Independent Director)

Nomination and Remuneration Committee:

• Chairman: Mr. Premal Hemant Gandhi (Independent Director)
• Members: Mr. Jignesh Anantray Goradia (Director), Smt. Jagruti Prashant Sheth (Independent Director)

Stakeholders Relationship Committee:

• Chairman: Mr. Jignesh Anantray Goradia (Director)
• Members: Mr. Premal Hemant Gandhi (Independent Director), Smt. Jagruti Prashant Sheth (Independent Director)

Operational Highlights

The company continues to operate in the pharmaceuticals segment as its sole reportable business. Other operating income of ₹102.76 lakhs in Q3FY26 primarily relates to rentals from the Biotech facility and equipment leased to Sun Pharmaceutical Industries Limited for R&D activities. Employee benefit expenses increased to ₹402.17 lakhs in Q3FY26 from ₹317.90 lakhs in the corresponding quarter last year, reflecting the company's continued investment in human resources.

Zenotech Laboratories Limited , a pharmaceutical company, has released its unaudited financial results for the second quarter and half-year ended September 30, 2023, showing a mixed performance with revenue growth but a net loss for the quarter.

Revenue and Profitability

The company reported a significant increase in revenue from operations for Q2 FY2024, reaching Rs. 1,023.19 lakhs, up from Rs. 874.60 lakhs in the same quarter of the previous year, marking a 17% year-over-year growth. For the half-year, revenue stood at Rs. 1,887.10 lakhs, compared to Rs. 1,764.09 lakhs in the corresponding period last year.

Despite the revenue growth, Zenotech faced challenges in profitability. The company reported a loss of Rs. 83.65 lakhs for Q2 FY2024, contrasting with a profit of Rs. 134.74 lakhs in Q2 FY2023. For the half-year, however, the company managed to remain profitable with a modest gain of Rs. 15.30 lakhs, though significantly lower than the Rs. 263.71 lakhs reported in the same period last year.

Financial Highlights

Balance Sheet and Cash Flow

As of September 30, 2023, Zenotech's total assets stood at Rs. 11,092.39 lakhs, with a strong cash position of Rs. 3,160.98 lakhs in cash and cash equivalents. The company's total equity was reported at Rs. 9,627.20 lakhs, indicating a solid financial foundation.

Other Key Developments

Tax Adjustments

The company has opted for a concessional rate of income tax under section 115BAA(5) of the Income Tax Act 1961 for the Assessment Year 2023-24. This resulted in accounting adjustments of Rs. 190.49 lakhs in the current reporting period.

Export Obligations

Zenotech has successfully settled liabilities related to export obligations under the Advance Authorization and EPCG scheme, resulting in a reversal of excess provision of Rs. 4.97 lakhs, reported as an exceptional item.

Segment Reporting

The company continues to operate in a single reportable segment: Pharmaceuticals.

Management Commentary

While specific management comments were not provided in the financial release, the results suggest that Zenotech is experiencing growth in its core operations, as evidenced by the increase in revenue. However, the company faces challenges in maintaining profitability, possibly due to increased expenses or market pressures.

The board meeting to approve these results was held on October 31, 2023, demonstrating the company's commitment to timely financial reporting and transparency with its stakeholders.

Investors and analysts will be watching closely to see how Zenotech navigates the current market conditions and works towards improving its bottom line in the coming quarters.