Why did profit fall when revenue grew?

Revenue rose 4.6%, but costs rose faster. The ₹9.07 crore provision reversal boosted the final profit number, meaning underlying operational profit likely declined more sharply.

What does the provision reversal represent?

It is a one-off item where the company reversed a previously booked expense. It flatters the FY26 profit figure but is not part of recurring earnings.

What was the final dividend?

The board recommended ₹3.75 per share, representing a 75% payout on the face value of the stock.

How did auditors view the results?

The auditors issued an unmodified opinion, the cleanest possible audit report.

Earnings · Pharmaceuticals · Small cap

Fermenta's profit falls 5% despite revenue growth, cushioned by a one-off

Full-year net profit slipped to ₹64.28 crore as a ₹9.07 crore provision reversal masked tighter operational margins.

— 3 earlier stories on Fermenta Biotech Ltd. →

FERMENTA By Tipsheet Editorial 26 May 2026 · 2:32 PM IST Verify on BSE · NSE

Mkt cap₹1,072 cr

P/E14.94×

ROE21.19%

Debt / eq.0.30

Div yld1.03%

₹64.28 cr FY26 standalone net profit, down from ₹67.62 cr.

What's new

FY26 standalone net profit fell 5% to ₹64.28 crore; revenue grew 4.6%.
A ₹9.07 crore provision reversal was an exceptional gain in the year.
The board recommended a final dividend of ₹3.75 per share.

Why this matters

The profit decline on revenue growth points to margin erosion. The one-off provision reversal makes the result look healthier than the core business performed.

What we're watching

Q1 FY27 results for signs of margin recovery.
Management's explanation for the cost pressures that outpaced revenue growth.
Whether the dividend payout is maintained at this level.

The full read

Fermenta Biotech grew revenue 4.6% in FY26 but saw net profit slip 5% to ₹64.28 crore from ₹67.62 crore. A ₹9.07 crore provision reversal flattered the bottom line. Strip that out and the operational story is weaker than the headline. The auditors signed off clean, and the board proposed a ₹3.75 per share dividend. For a company posting top-line growth, this is a margin story. Costs are winning. The dividend and clean audit signal a stable foundation, but translating growth into profit is the challenge now.

Questions answered

Why did profit fall when revenue grew?: Revenue rose 4.6%, but costs rose faster. The ₹9.07 crore provision reversal boosted the final profit number, meaning underlying operational profit likely declined more sharply.
What does the provision reversal represent?: It is a one-off item where the company reversed a previously booked expense. It flatters the FY26 profit figure but is not part of recurring earnings.
What was the final dividend?: The board recommended ₹3.75 per share, representing a 75% payout on the face value of the stock.
How did auditors view the results?: The auditors issued an unmodified opinion, the cleanest possible audit report.

Mentioned: Fermenta Biotech Ltd. · ₹9.07 cr provision reversal · ₹3.75 per share dividend

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Story so far

All notes on FERMENTA →

26 May 2026 · 2:32 PM IST Fermenta's profit falls 5% despite revenue growth, cushioned by a one-off
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