Fermenta Biotech Ltd – Investor Presentation Summary

Key Operational Highlights

  • Q2 revenue reached INR 135.8 crore, up 0.1% YoY and up 8% QoQ.
  • H1 revenue was INR 261.9 crore, down 7% YoY.
  • Human Nutrition volumes grew 7% over Q1 in H1FY27.
  • India contributed 51% of H1 revenue, up from 40% a year earlier.
  • Operating cash flow was up 44% at INR 54.8 crore.
  • Net debt was below INR 3 crore.
  • Key drivers: Growth in Human Nutrition segment and increased domestic market share, offset by a price reset in Animal Nutrition.

Segment-wise Performance

  • Nutrition Business: H1FY27 revenue of INR 209 crore (H1FY26: INR 220 crore).
  • Vitamin D3 - Human Nutrition: INR 163 crore in H1FY27, up 2% YoY, representing 62% of total revenue (up from 57% a year earlier).
  • Vitamin D3 - Animal Nutrition: INR 22 crore in H1FY27, down from INR 46 crore YoY, with volumes down 31% and realisations down 35%.
  • Others (Premixes, FRK): INR 24 crore in H1FY27, up 58% from INR 15 crore YoY.
  • Green Chemistry: INR 3 crore in H1FY27 (H1FY26: INR 4 crore).
  • Other API & Intermediates: INR 23 crore in H1FY27 (flat vs H1FY26: INR 23 crore).
  • Environmental Solutions: INR 17 crore in H1FY27, up 10% from INR 15 crore YoY.

Financial Highlights

  • Revenue: INR 135.8 crore (Q2FY27), INR 261.9 crore (H1FY27).
  • EBITDA: INR 23.2 crore (Q2FY27, down 28% YoY, up 3% QoQ), INR 45.6 crore (H1FY27, down 34% YoY).
  • PAT: INR 9.4 crore (Q2FY27, down 48% YoY, down 1% QoQ), INR 18.9 crore (H1FY27, down 52% YoY).
  • EPS (diluted): INR 3.34 (Q2FY27), INR 6.67 (H1FY27).
  • Margins: EBITDA margin of 17.9% for H1FY27 (FY26: 23.3%).
  • YoY comparison: H1 Total Income down 7% to INR 262 crore; Profit before tax down 45% to INR 29 crore.
  • Drivers: Lower Animal Nutrition prices and a higher base in H1FY26 which included one-off other income and real-estate gains.
  • Key Risks: Price cycle in Animal Nutrition, fixed costs weighing on a lower revenue base.

Geographical Revenue Split

  • Domestic: 51% of H1FY27 revenue (H1FY26: 40%).
  • Export: 49% of H1FY27 revenue.
  • Regional Breakdown: Europe was the second-largest market at 21% of revenue.

Balance Sheet Snapshot

  • Net Debt/Equity: 0.25 (Debt: INR 105 crore; Equity: INR 412 crore).
  • Reserves: Not Specified.
  • Current Assets: INR 423 crore; Current Liabilities: INR 250 crore.
  • Working Capital/Leverage Metrics: Current ratio of 1.69; Quick ratio of 0.90.
  • Financial Health Insights: Strong cash flow generation; Cash & Equivalents up 11% to INR 102 crore; Debt eased 4%.

Capex & Cash Flow Health

  • Capital Expenditure: INR 17 crore (H1FY27).
  • Free Cash Flow: INR 37 crore (H1FY27, up 46% from INR 26 crore in H1FY26).
  • Operating Cash Flow: INR 55 crore (H1FY27, up 44% from INR 38 crore in H1FY26).
  • Net Debt Movement: Net debt below INR 3 crore.
  • Investment Rationale: Focus on capacity expansion for VITADEE Green® and new product development.

Strategic & R&D Initiatives

  • Investments in Innovation: VITADEE Green® plant-source Vitamin D3 received FSSAI approval in July 2026 for use in supplements and foods. An exclusive Vitamin B12 licence was secured from VIT Vellore in September 2026.
  • Expected impact: VITADEE Green® capacity expected from Q2FY28; Calcifediol expected to be ready for regulatory approvals by end-FY27.
  • Strategic Rationale: Expanding into vegan/vegetarian nutrition markets and developing next-generation Vitamin D metabolites.

Industry Trends & Business Environment

  • Macro/Industry Trends: Rising preventive healthcare awareness, growing middle class, government initiatives (PLI), food fortification, functional food growth, and animal nutrition demand.
  • Impact on Company: Driving demand for the company's nutritional ingredients, though Animal Nutrition is currently in a down cycle.

Management Commentary & Growth Outlook

  • Strategic Outlook: Focus on unlocking growth through innovation chemistry to meet evolving global health and nutrition demands.
  • FY Guidance: Not Specified.
  • Market Share Targets: Not Specified.
  • Risks and Opportunities: Not Specified beyond disclosed financial risks.