Advanced Enzyme Technologies Limited

Advanced Enzyme Technologies reported a modest 2% Y-o-Y revenue growth to INR 1,719 million in Q3 FY26, alongside a 7% Q-o-Q decline. EBITDA decreased by 11% Y-o-Y to INR 494 million, with the margin contracting to 29% from 33% in the prior year. Despite these challenges, PAT grew 11% Y-o-Y to INR 432 million, and the company maintains its full-year guidance, anticipating a 13-15% double-digit growth over the next three to five years.

The Human Healthcare segment, contributing 56% of total revenue, experienced a 6% Y-o-Y and 21% Q-o-Q decline to INR 962 million, attributed to lower sales in Pharma, API, and Nutrition across domestic and international markets. In contrast, Animal Healthcare revenue surged by 22% Y-o-Y and 25% Q-o-Q to INR 241 million. The Bioprocessing segment grew 13% Y-o-Y, primarily driven by a robust 16% Y-o-Y growth in the food business, while Specialized Manufacturing remained flat Y-o-Y.

JC Biotech reported a PAT loss of INR 4 million in Q3 FY26, despite a 14% increase in 9M top line. Evoxx demonstrated strong performance, with Q3 revenue of INR 87 million and PAT of INR 15 million, and a 44% increase in 9M revenue, turning PAT positive at INR 36 million. SciTech's Q3 top line stood at INR 159 million with a PAT of INR 7 million.

The company's standalone R&D expenditure, including CapEx, totaled INR 80 million in Q3 FY26 and INR 246 million for the nine months. A new R&D Center in Nashik is planned for commissioning by the end of Q2 next financial year, focusing on strain development, protein engineering, and fermentation. Management emphasized continuous R&D to address market needs, develop new products, and maintain a competitive lead, particularly in human nutrition.

The US market remains highly uncertain, with tariffs and increasing raw material costs from China impacting the nutritional and pharmaceutical sectors. While reciprocal tariffs have been reduced, management expects limited immediate impact on sales, as the overall US economy and market conditions are more influential. The company is implementing strategies to retain customers and mitigate margin pressures, acknowledging that the growth trajectory will be non-linear.

Beyond the current R&D investments, the company anticipates a CapEx of approximately INR 50 crore in FY28-29. Management is actively exploring expansion into new market areas and applications, including the B2C segment with Nutrazyme, targeting INR 1-1.5 crore in sales by year-end. Discussions around a potential share buyback were acknowledged but no firm plans were disclosed.