Vivo Bio Tech profit plunges 86% despite 14% revenue growth
Net profit fell to ₹1.88 crore from ₹13.37 crore a year ago as employee costs and depreciation surged. The board approved the unaudited results on July 13.
— 4 earlier stories on Vivo Bio Tech Ltd. →What's new
- Revenue up 14% to ₹14.28 cr in June quarter.
- Net profit fell 86% to ₹1.88 cr from ₹13.37 cr a year ago.
- Employee costs and depreciation surged, driving profit decline.
Why this matters
The 86% profit crash shows last year's ₹13.37 cr profit was likely a one-off. With a ₹5.44 cr loss in the March quarter and auditor flagged ₹4.19 cr in overdue dues, core operations remain weak. Revenue growth is not enough to offset rising costs.
What we're watching
- Whether revenue growth sustains above the ₹14 cr run-rate.
- Impact of rising employee costs and depreciation on margins.
- Any update on the proposed merger with a resort company.
The full read
Vivo Bio Tech's June quarter offers two opposing headlines. Revenue up 14% to ₹14.28 crore. Profit down 86% to ₹1.88 crore. The difference: employee costs and depreciation rose faster than sales. Last year's ₹13.37 crore profit now looks like an outlier—the March quarter had a ₹5.44 crore loss and an auditor flagged ₹4.19 crore in overdue dues. Sequential improvement from that loss is real, but the earnings quality is thin. For a ₹51 crore market-cap company, cost control remains the biggest risk. That hasn't changed.
Questions answered
- Why did profit fall despite revenue growth?
- Revenue rose 14% to ₹14.28 cr, but employee costs and depreciation climbed even faster, wiping out gains. Costs rose faster than revenue, squeezing margins.
- How does this compare with last quarter?
- The June quarter profit of ₹1.88 cr is an improvement over the March quarter's ₹5.44 cr loss, but the year-on-year comparison is drastically worse due to a high base likely boosted by one-off income.
- What is the company's current financial health?
- With a market cap of ₹51 cr and debt/equity of 0.69, the balance sheet is manageable. However, the March quarter auditor flagged ₹4.19 cr in overdue dues, indicating working capital stress. The promoter also sold 99% of its stake in June.
- Should I be worried about rising costs?
- Yes, if they persist. Employee costs and depreciation rose sharply this quarter, compressing margins. Without stronger revenue growth, profitability could remain weak.
Vivo Bio Tech Ltd.
Latest quarter · Jun 2026
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All notes on VIVOBIOT →- 13 Jul 2026 · 7:51 PM IST Vivo Bio Tech profit plunges 86% despite 14% revenue growth
- 10d ago Vivo Bio Tech profit slumps 86% even as revenue climbs 14%
- 45d ago Vivo Bio Tech promoter sells 99% of its stake
- 54d ago Vivo Bio Tech posts ₹5.44 cr Q4 loss; auditor flags ₹4.19 cr in overdue dues
- 59d ago Vivo Bio Tech to consider merging a resort company into itself