Vimta Labs Limited Earnings Summary — Q2 FY2026

• 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 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.

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.

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.