Advanced Enzyme Technologies (ADVENZYMES) Q1 25/26 earnings summary

Executive summary

• Fiscal 2026 began with record quarterly revenue of ₹1,859 million, up 20% year-over-year and 11% sequentially, despite global economic and geopolitical challenges.

• Net profit for Q1 FY26 was ₹404.40 million, up 16% year-over-year and 51% sequentially.

• Growth was broad-based, led by human and animal healthcare/nutrition segments, with B2C revenue in the USA showing notable improvement.

• Management remains optimistic about sustaining double-digit growth, focusing on resilience, long-term value, and expanding product lines and global reach.

• The group operates primarily in enzyme manufacturing and sales, with expansion into nutrition and wellness through a new subsidiary.

Financial highlights

• Q1 FY26 consolidated revenue was ₹1,859 million, with EBITDA at ₹564 million (up 10% year-over-year, 24% sequentially) and PAT at ₹404 million (up 16% year-over-year, 51% sequentially).

• EBITDA margin was 30%, PAT margin 22%, and net profit margin approximately 21.8% for Q1 FY26.

• EPS for Q1 FY26 was ₹3.57, up 17% year-over-year.

• Gross margin for the quarter was in the 72%-73% range, impacted by product mix and tariffs.

• Net worth at FY25 year-end stood at ₹14,209 million.

Outlook and guidance

• Management expects the growth trajectory to continue across all segments, maintaining optimism for double-digit growth in the medium term.

• Gross margins are expected to remain in the 73%-75% range, with some pressure from tariffs and product mix.

• Focus areas include expanding animal nutrition, probiotics, bio-catalysis, and baking segments, with plans to broaden geographical reach and launch new products.

• New R&D facility is expected to be commissioned in the last quarter of the year.

• Final dividend of ₹1.20 per equity share for FY25 approved, and interim dividend of ₹4 per equity share declared and paid during the quarter.