Advanced Enzyme Technologies reported mixed results for Q3 FY26, with modest 2% Y-o-Y revenue growth and an 11% decline in EBITDA, primarily due to weakness in the Human Healthcare segment. While Animal Healthcare and Bioprocessing showed strong growth, the overall performance was impacted by US market uncertainties and tariff effects. The company remains optimistic about long-term growth, driven by strategic R&D investments and expansion into new areas like B2C and biocatalysis.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue | 1719 million | +2.0% YoY |
| EBITDA | 494 million | -11.0% YoY |
| EBITDA Margin | 29% | — |
| PAT | 432 million | +11.0% YoY |
| PAT Margin | 25% | — |
| 9M Revenue | 5424 million | +15.0% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Revenue(crores) | 203.4 | |
| EBITDA(crores) | 63.2 | |
| EBITDA Margin | 31% | |
| PAT Margin | 22% | |
| PAT(million) | 45.3 |
| Category | Headline | |
|---|---|---|
Capex | ₹3 million |
| Category | Target | Priority |
|---|---|---|
| Revenue | Overall Revenue Growth→13-15% double digit | High |
| Sales | Nutrazyme B2C Sales→INR 1 crore to INR 1.5 crore | Medium |
| Capex | New R&D Center Commissioning→end of the second quarter of this coming year | High |
| Capex | Future CapEx→INR 50 crore | Medium |
| Margin | US Tariff Impact on EBITDA→around 1% | Medium |
| # | Metric | |
|---|---|---|
| 01 | New R&D Center Commissioning | |
| 02 | Nutrazyme B2C Sales Performance | |
| 03 | Human Nutrition Segment Recovery | |
| 04 | Impact of US Tariff Reduction on EBITDA Margin | |
| 05 | Biocatalysis Segment Development |
| Severity | Risk |
|---|---|
high | US Market Uncertainty and Tariffs The US nutritional market is highly uncertain, leading to heavy duties and difficulty in developing long-term strategies. Tariffs, even if reduced, still impact pricing and sales. Management |
medium | Raw Material Cost Increases from China Costs for raw materials, packaging, and shipping from China are increasing, which the industry is trying to pass on gradually, contributing to market slowdown. Management |
medium | Market Volatility and Unpredictable Growth Trajectory Management noted that the growth trajectory will be a 'roller coaster,' not a straightforward linear graph, with some years growing faster and others slower. Management |
low | Regulatory and Bureaucratic Hurdles Despite government interest in biopharma and biologic mediums, regulatory and bureaucratic processes can slow down the realization of benefits from new developments. Management |
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.