Vimta Labs Limited Earnings Summary — Q2 FY2026
Vimta Labs Reports Robust Q2 Revenue Growth and Double-Digit Net Profit Increase Post-Divestiture
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹90 Cr is 20.6% higher year-on-year.
- Revenue has compounded at 5.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹22 Cr is 112.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 24.2% annualised across the period.
- Operating margin stands at 36.8% in Q3 FY2025.
- Operating margin expanded by 473 bps year-on-year.
- Over the last two years operating margin has expanded by 905 bps.
- PBT margin is 31.0%.
- Expense growth of 12.2% remained below revenue growth of 20.6%.
- Operating profit of ₹33 Cr is 38.4% higher year-on-year.
- Operating leverage continues to improve.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 80/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 | Q3 FY2024 | Q2 FY2024 | Q1 FY2024 | Q4 FY2023 | Q3 FY2023 | Q2 FY2023 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 90 | 85 | 75 | 80 | 75 | 66 | 83 | 82 | 77 | 80 |
| Expenses | Stable | 57 | 55 | 49 | 55 | 51 | 48 | 59 | 58 | 56 | 54 |
| Operating Profit | Improving | 33 | 30 | 26 | 24 | 24 | 17 | 25 | 24 | 21 | 25 |
| Operating Margin | Stable | 36.8% | 35.3% | 34.6% | 30.6% | 32.0% | 26.6% | 29.5% | 29.6% | 27.7% | 31.8% |
| Other Income | Volatile | 5 | -1 | -1 | 0 | -1 | 0 | 1 | 1 | 1 | 1 |
| Interest | Improving | 1 | 0 | 0 | 1 | 1 | 1 | 0 | 0 | 1 | 1 |
| Depreciation | Improving | 10 | 8 | 8 | 8 | 8 | 9 | 9 | 8 | 8 | 8 |
| Profit Before Tax | Accelerating | 28 | 20 | 17 | 16 | 14 | 8 | 16 | 17 | 14 | 18 |
| Tax | Accelerating | 6 | 5 | 4 | 4 | 3 | 2 | 4 | 4 | 4 | 5 |
| Net Profit | Accelerating | 22 | 15 | 12 | 12 | 10 | 6 | 12 | 13 | 10 | 13 |
| Net Margin | Accelerating | 23.9% | 18.0% | 16.4% | 15.5% | 13.6% | 9.7% | 14.6% | 15.5% | 13.2% | 16.5% |
Key Takeaways
- Revenue from operations grew 20.2% YoY to ₹1,018.48 million, driven by strong performance in contract research and testing services.
- Net profit saw a significant 30.7% YoY increase reaching ₹199.20 million, benefiting from the exit of the loss-making diagnostics business.
- The company successfully completed a 1:1 bonus issue in June 2025, with EPS figures for prior periods adjusted accordingly.
- Operational expenses rose YoY, notably employee benefits (up 19.5%) and other expenses (up 50.3%), reflecting capacity expansion and ESOP costs.
- Vimta transitioned its Diagnostic and Pathological services business to Thyrocare Technologies on October 11, 2024, shifting to a royalty-based model (5% of revenue).
- Capital Work-in-Progress (CWIP) remains substantial at ₹546.69 million, indicating ongoing investment in lab infrastructure and capabilities.
- The balance sheet remains strong with cash and cash equivalents rising to ₹281.41 million as of September 30, 2025.
Management Guidance
Management focus remains on scaling higher-margin specialized testing services such as biologics and medical devices while leveraging the long-term PPP with FSSAI. The business has shifted toward a leaner structural model following the slump sale of the diagnostic segment.
Sentiment Shift
Improving
The disposal of the discontinued diagnostic operations, which were previously a drag on margins, has allowed for cleaner bottom-line growth and a focus on core high-value testing segments.
Outlook
The outlook is positive as the company integrates its recent capital expenditures into operational revenue. The move to a royalty-based income for the diagnostic segment provides passive revenue while protecting the P&L from operational volatility in that sector.
From the Annual Report (Key Quotes)
“The Company vide Business Transfer Agreement dated August 30, 2024... for sale and transfer of its Diagnostic and Pathological services business... transferred the said Business to the buyer on October 11, 2024.”
“Earnings per share for all prior periods have been proportionately adjusted [following the 1:1 bonus issue].”
“The company has acquired the right to charge the customer for the services to be rendered which has been assessed as an intangible asset.”
Official Quarterly Documents
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This summary is AI-generated from Vimta Labs Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.