Vimta Labs (524394) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew to INR 854 million, up 26.4% YoY, with EBITDA at INR 306 million and PAT at INR 170 million; financials exclude diagnostics services to focus on core business areas.

• Pharmaceutical services remain the primary growth driver, with clinical trial and analytical services showing robust performance.

• Food testing segment experienced a temporary slowdown due to internal facility transitions.

• Electronics and electrical testing services are expanding, with new capacity additions underway.

• Profit after tax from discontinued diagnostics operations was a loss of INR 17.68 million for Q2 FY25.

Financial highlights

• Q2 FY25 total income: INR 854 million vs. INR 676 million in Q2 FY24 (26.4% YoY growth); EBITDA margin at 35.8%.

• Q2 FY25 PAT: INR 170 million vs. INR 81 million in Q2 FY24 (over 100% YoY growth); PAT margin near 20%.

• H1 FY25 revenue: INR 1,610 million vs. INR 1,439 million in H1 FY24 (12% YoY growth); EBITDA margin at 35.5%.

• H1 FY25 PAT: INR 309 million; basic EPS at INR 13.9, up 36.3% YoY.

• Net debt-free balance sheet with cash and equivalents of INR 280 million; debt-to-equity ratio at 0.03x.

Outlook and guidance

• Confident in achieving a quarterly run rate of INR 125 crore and annualized revenue of INR 500 crore in FY26, adjusted for diagnostics divestment.

• Margins in the mid-30% range are expected to be sustainable post-diagnostics divestment.

• Growth to be led by pharmaceutical services, with other divisions also expected to contribute.

• CapEx guidance for FY25 maintained at INR 900 million.

• Will receive a 5% brand royalty fee on revenue from the divested diagnostics business for at least two years.