Fermenta Biotech Ltd

The investor presentation for Fermenta Biotech Limited's Q2/H1FY27 highlights a mixed performance. Revenue for Q2 rose 8% sequentially to INR 135.8 crore, aligning with Q2FY26, while H1FY27 revenue stood at INR 261.9 crore, down 7% year-on-year. Human Nutrition revenue grew 2% year-on-year to INR 162.5 crore, with India contributing 51% of H1 revenue, up from 40% in the prior year. However, EBITDA declined 28% year-on-year in Q2 and 34% in H1, with profit after tax down 48% and 52% respectively. Operating cash flow increased 44% to INR 54.8 crore, and net debt remained below INR 3 crore. Key milestones included FSSAI approval for VITADEE Green® and NSE listing. Management guided toward VITADEE Green® capacity in Q2FY28 and Calcifediol regulatory readiness by end-FY27. The presentation noted a shift in revenue mix, with Human Nutrition rising to 62% of total revenue, while Animal Nutrition revenue fell 35% year-on-year. Cost pressures, including higher employee costs and fixed expenses, weighed on margins. Strategic initiatives focused on India's growing nutrition market, green chemistry, and expanding product pipelines like plant-source Vitamin D3 and Calcifediol. The balance sheet showed improved liquidity and leverage ratios, with debt-to-equity at 0.25 and current ratio at 1.69. Management emphasized diversification, customer concentration reduction, and leveraging India's regulatory and market opportunities.

The presentation highlights both growth in India and Human Nutrition, alongside declines in EBITDA and profit, indicating a mixed performance.