Fermenta's underlying business grew 26% even as PAT fell 8% on a high base
Stripping out a prior-year real estate gain, Fermenta's operational revenue rose 26% and EBITDA jumped 44%. The headline PAT decline is an artefact of that one-off.
— 3 earlier stories on Fermenta Biotech Ltd. →What's new
- FY26 PAT fell 8% to ₹70.3 cr, but that's due to a high base from a one-off real estate value unlock last year.
- Underlying operational business revenue grew 26% and EBITDA grew 44% YoY.
- Fermenta is advancing a vitamin D3 patent, EDQM certification, and GLAN approval, with commercial launches planned for FY27.
Why this matters
The headline numbers are misleading. The 8% PAT drop masks a strong operational year where the core business grew at a much faster clip than the topline suggests. The gap between operational growth (26% revenue, 44% EBITDA) and the reported figures (14% revenue, -8% PAT) tells the story of a business moving one way and a paper gain moving the other.
What we're watching
- FY27 commercial launches from the vitamin D3 patent, EDQM, and GLAN approvals.
- Sustainability of the 44% operational EBITDA growth rate.
- Whether the real estate asset base generates any further one-offs.
The full read
Fermenta Biotech's FY26 results require a second look. Headline PAT fell 8% to ₹70.3 crore, but that number is anchored to a prior-year profit boosted by a real estate value unlock. Strip that out, and the core business had a strong year: operational revenue climbed 26% and operational EBITDA surged 44%. The reported topline grew a more modest 14% to ₹547.8 crore, while consolidated EBITDA was essentially flat at ₹122.2 crore. The filing also points to product pipeline milestones, including a vitamin D3 patent, EDQM certification, and a GLAN approval, with commercial launches planned for the next fiscal year. The gap between the headline numbers and the operational reality is wide. Investors focused on the core business have a better story than the top-line suggests.
Questions answered
- Why did Fermenta's profit fall even though the core business grew strongly?
- PAT declined 8% to ₹70.3 crore because FY25 profit was boosted by a one-off real estate value unlocking. Excluding that, the operational business delivered 44% EBITDA growth.
- What drove the operational growth in FY26?
- The filing does not break down growth by product. It states the operational business excluding real estate saw revenue climb 26% and EBITDA expand 44%.
- What are the key developments on the product front?
- Fermenta cited progress on its vitamin D3 patent, EDQM certification, and GLAN approval. It plans commercial launches for all three in FY27.
- Is the 0.5% reported EBITDA growth representative of the business?
- No. The reported EBITDA of ₹122.2 crore grew just 0.5% YoY, but the underlying operational business EBITDA grew 44%. The discrepancy is due to the prior-year real estate gain.
Story so far
All notes on FERMENTA →- 26 May 2026 · 4:50 PM IST Fermenta's underlying business grew 26% even as PAT fell 8% on a high base
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