ZIM Laboratories Limited has delivered a robust Q3FY26 performance, demonstrating strong operational recovery and strategic progress across key business segments. The pharmaceutical company's quarterly results showcase significant improvement in profitability metrics and revenue growth, positioning it well for future expansion.

Strong Q3FY26 Financial Performance

The company reported impressive quarterly results with total operating income reaching ₹1,087 Mn in Q3FY26, reflecting a substantial 12.8% year-on-year growth compared to ₹963 Mn in Q3FY25. Quarter-on-quarter performance was equally strong, showing 22.5% growth from Q2FY26's ₹887 Mn.

The company's EBITDA performance showed resilience with ₹145 Mn in Q3FY26, up 9.1% from ₹133 Mn in Q3FY25. More notably, EBITDA margins improved significantly on a quarter-on-quarter basis to 13.4% from 8.8% in Q2FY26, indicating enhanced operational efficiency.

Nine-Month Performance and Business Segments

For the nine-month period ending Q3FY26, ZIM Laboratories reported total operating income of ₹2,691 Mn, a marginal decline of 0.4% compared to ₹2,703 Mn in 9MFY25. EBITDA for 9MFY26 stood at ₹280 Mn, down 15.5% from ₹332 Mn in the previous year, with margins at 10.4% versus 12.3% in 9MFY25.

The pharma business contributed 72% of total revenue with ₹786 Mn in Q3FY26, showing 7.4% quarter-on-quarter growth and 6.4% year-on-year improvement. The nutraceutical segment demonstrated exceptional performance with ₹300 Mn revenue, marking a significant 93% quarter-on-quarter growth and 34% year-on-year increase due to resolution of currency issues in legacy markets.

Export Business and Geographic Mix

ZIM Laboratories maintained its strong export focus with international business accounting for 88% of Q3FY26 revenue at ₹961 Mn, representing a robust 23% year-on-year growth. For 9MFY26, export business reached ₹2,290 Mn, constituting 85% of total revenue compared to ₹2,247 Mn (83%) in 9MFY25.

Innovation and R&D Investment

The company continues to prioritize research and development with total R&D spend of ₹230 Mn in 9MFY26, accounting for 8.6% of total operating income. In Q3FY26, R&D allocation reached ₹75 Mn, representing 6.9% of total operating income, focused on product development, dossier upgrades, registrations, and infrastructure enhancement.

The innovative product portfolio (NIP + OTF) generated ₹132 Mn in Q3FY26, showing 63% quarter-on-quarter growth and contributing 12.2% to total operating income, up from 9.2% in Q2FY26.

CAPA Remediation and Future Readiness

ZIM Laboratories has made substantial progress on its CAPA remediation plan, with the company stating it has completed and implemented most initiatives. The timeline indicates readiness for inspection from March 2026 onwards, with comprehensive validation by consultants and potential re-audit by EMA inspectors planned for Q4FY26.

Capital Raising and Expansion Plans

The board has approved, subject to shareholder and regulatory approvals, a preferential issue of up to 47,64,497 equity shares at ₹73.46 per share to Florintree Trinex LLP, aggregating up to ₹35 crore. The funds will be utilized for:

• Star Product 2 dedicated facility for EU/UK/Developed Markets
• Standalone nutraceutical facility for global markets
• CAPA remediation investments in equipment and automation

The company invested ₹229 Mn in gross block during 9MFY26, including ₹84 Mn towards BE studies and regulatory filings, demonstrating continued commitment to growth and compliance infrastructure.

ZIM Laboratories announced key changes to its senior management structure on February 2, 2026, as the Board of Directors approved strategic appointments and categorizations recommended by the Nomination and Remuneration Committee. The pharmaceutical company disclosed these developments under Regulation 30 of SEBI (LODR) Regulations, 2015, with the event occurring at 08:24 p.m. on February 2, 2026.

Senior Management Appointments and Categorizations

The Board approved three significant changes to the company's senior management structure through a circular resolution:

New President - International Business

Vikrant Bendre joins ZIM Laboratories as President-International Business, bringing over 26 years of experience across strategic and operational roles. His extensive background includes:

• Previous role at JB Chemicals and Pharmaceuticals Limited, leading Branded Generics business for Rest of the World markets with full P&L responsibility
• Leadership experience across Southeast Asia, Middle East & Gulf region, Africa, and Latin America
• Significant exposure to regulated markets including United States, Canada, Australia, Japan, China, Brazil and Mexico
• Career progression through Panacea Biotec Limited, Jubilant Generics Limited, and Ipca Laboratories Limited

Bendre holds an MBA in Marketing from MIT School of Management, Pune, and a Bachelor's degree in Science from the University of Pune.

Human Resources Leadership

Jitendra Pandey, currently serving as Vice President-Human Resource, has been categorized as Senior Management Personnel. His responsibilities encompass:

• Overseeing Industrial Relations, Administration, and EHS functions
• Nearly two decades of diverse experience across multiple sectors and geographies
• Previous leadership roles at John Deere, Arvind Limited, and Alkem Laboratories
• MBA in Human Resources from Nagpur University

Quality Assurance Excellence

Sridhar Reddy, Vice President-Quality Assurance, has been elevated to Senior Management Personnel status. His expertise includes:

• Postgraduate in Pharmacy with over 29 years of experience in sterile and non-sterile pharmaceutical manufacturing
• Previous senior roles at Natco Pharma and Aurobindo Pharma
• Responsibility for overall site Quality functions and implementation of robust quality systems
• Primary Quality representative for regulatory inspections, customer audits, and external consultant visits

Reddy brings extensive experience in Quality Systems Management and has successfully led numerous regulatory inspections including US FDA, UK MHRA, EU authorities, ANVISA (Brazil), and audits from near-regulatory and emerging markets. He holds an M. Pharm. from BITS Pilani, India, and a B. Pharm. from Bangalore University.

Strategic Implications

These appointments strengthen ZIM Laboratories' leadership across critical business functions. The addition of Bendre as President-International Business signals the company's focus on expanding global operations, while the elevation of Pandey and Reddy to Senior Management Personnel status recognizes their strategic importance in human resources and quality assurance respectively.