Zim Laboratories , a prominent player in the pharmaceutical sector, has announced its financial results for the second quarter and half-year ended September 30, 2025. The company faced headwinds during this period, reporting a consolidated net loss despite a slight recovery in quarterly revenue.

Key Financial Highlights

• Q2 FY2026 Performance: Zim Laboratories reported a consolidated net loss of Rs 42.46 lakhs for Q2 FY2026, a significant downturn from a profit of Rs 238.14 lakhs in the same quarter last year.
• Half-Year Results: For H1 FY2026, the company posted a consolidated net loss of Rs 229.95 lakhs, compared to a profit of Rs 327.97 lakhs in H1 FY2025.
• Revenue: Total operating income for Q2 FY2026 stood at Rs 8,871.13 lakhs, showing a marginal decrease of 3.7% year-on-year from Rs 9,214.33 lakhs in Q2 FY2025.
• EBITDA Margin: The EBITDA margin for Q2 FY2026 was 8.8%, down from 11.8% in the corresponding quarter of the previous year.

Segment Performance

The company's pharmaceutical segment continued to be the primary revenue driver:

• Pharma Business: Contributed 83% (Rs 732.00 crores) to the total revenue in Q2 FY2026, showing a robust growth of 30.7% quarter-on-quarter and 11.9% year-on-year.
• Nutra Business: Accounted for 17% (Rs 155.00 crores) of the total revenue, experiencing a decline primarily due to shortfall in domestic business.

Export Performance

• Q2 FY2026: Export business declined by 4% year-on-year but maintained its contribution at 82% of total revenue, reaching Rs 728.00 crores.
• H1 FY2026: Export business saw a 9.4% year-on-year decline, contributing Rs 1,330.00 crores (83% of total revenue).

Strategic Developments

1. Asset Sale Agreement: During the quarter, Zim Laboratories entered into an agreement to sell one of its unused MIDC leasehold lands, along with the building and certain assets. This transaction is expected to be completed before March 31, 2026.

2. Land Acquisition: Subsequent to the quarter end, the company purchased MIDC leasehold land adjacent to its existing plant, indicating potential for future expansion.

3. R&D Investment: In H1 FY2026, the company allocated Rs 46.00 crores for bioequivalence studies and registrations, advancing its Innovative Products (NIP + OTF) pipeline.

Management Commentary

Anwar S. Daud, Managing Director of Zim Laboratories Limited, stated, "While we faced challenges this quarter, our focus remains on strategic growth and innovation. The pharma segment's strong performance and our continued investment in R&D underscore our commitment to long-term value creation."

Future Outlook

Despite the current setbacks, Zim Laboratories is taking steps to strengthen its market position:

• Continued focus on export markets, which remain the primary revenue contributor.
• Ongoing investment in research and development to enhance the product pipeline.
• Strategic asset management, as evidenced by the land sale and new acquisition, to optimize resources.

The company's performance in the coming quarters will be crucial in determining its ability to navigate the current challenges and return to profitability.

Note: All figures are based on consolidated financial results unless otherwise specified.

Zim Laboratories Limited, a pharmaceutical company specializing in innovative drug delivery solutions, has announced a postal ballot to seek shareholder approval for the re-appointment of two of its Whole-time Directors, Mr. Niraj Dhadiwal and Mr. Prakash Sapkal, for an additional two-year term.

Key Details of the Postal Ballot

• Re-appointment Period: October 1, 2025, to September 30, 2027
• E-voting Period: October 15 to November 13, 2025
• Results Announcement: By November 15, 2025

Proposed Remuneration Package

The company has proposed the following remuneration structure for both directors:

Director Profiles

Mr. Niraj Dhadiwal

• Current Role: Director - Business Development
• Experience: Over 30 years in the pharmaceutical sector
• Focus: Business development and marketing functions
• Vision: Global presence with innovative and differentiated products

Mr. Prakash Sapkal

• Current Role: Director - Operations
• Experience: More than 30 years in the pharmaceutical industry
• Expertise: Key operations and team management
• Contribution: Instrumental in bringing ZIM Labs' vision to life

Both directors have been with Zim Laboratories for nearly three decades, rising through the ranks to their current positions. Their extensive experience and contributions have been pivotal to the company's growth and expansion strategies.

Voting Process

The company has appointed Ms. Roshni Jethani as the scrutinizer for the postal ballot process. Shareholders can cast their votes through remote e-voting, with the results to be announced within two days of the conclusion of the voting period.

Company's Strategic Direction

Zim Laboratories is currently focusing on expanding its presence in regulated markets such as the EU. The company is investing in product development and infrastructure upgrades to meet the requirements of these new markets. While this transition period may impact short-term profitability, the management anticipates improved results in the long run as new high-potential products gain registration and market traction.

The re-appointment of Mr. Dhadiwal and Mr. Sapkal is seen as a move to ensure continuity in leadership as the company navigates this crucial phase of expansion and development in regulated markets.

Shareholders are encouraged to review the detailed postal ballot notice and cast their votes before the e-voting deadline.