VIMTA LABS LTD (NSE: VIMTALABS) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Siva Rama Kambhampati — Chief Financial Officer
Harita Vasireddi — Managing Director and Whole Time Director
Satya Neerukonda — Executive Director
Analysts:
Vishal Manchanda — Analyst
Preet Jain — Analyst
Disha — Analyst
Santosh Keshari — Analyst
Diksha — Analyst
Tanaay Malpani — Analyst
Aditya Chheda — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome TO Vimta Labs Limited Q3FY26 earnings conference call hosted by Systematics Institutional Equities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Manchanda from Systematics Institutional Equity. Thank you. And over to you sir.
Vishal Manchanda — Analyst
Thank you. Bhumi. Good evening everyone. On behalf of Systematics Institutional Equities I welcome you to the Q3 FY26 earnings call of Vimta Labs. We thank the Wimta Labs management for giving us an opportunity to host the call. Today we have with us the senior management of the company represented by Ms. Haritha Vasi Reddy, Managing Director, Mr. Sathya Srinivas Neerukonda, Executive Director, Mr. Siva Ramakrishna, Chief Financial Officer and Ms. Sujani Vasir Reddy, Company Secretary. Thank you. And over to you.
Siva Rama Kambhampati — Chief Financial Officer
Yeah. Thank you Vishal. Good evening everyone and a Warm welcome to Q3 and 9 months FY26 earning call of Intel Labs Limited. Please note that the investor presentation and the financial results are available on the company website in the stock exchanges. Also, anything said on this call which reflects our outlook for the future or which could be construed as a forward looking statement must be reviewed in conjunction with the risks that the company faces. This conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company as well as on the stock exchanges.
Please also note that the audio of the conference call is a copyright material of Vimta Labs Limited and cannot be copied, rebroadcasted or attributed in the press or media without specific and written consent of the company from the management. We have with us Ms. Sarita Vasiveddy, Managing Director, Mr. Satsya Srinivas Nirukonda, Executive Director, Mr. Sivaram Krishna Kravampati, CFO, myself Mr. Sujini Vas Reddy, Company Secretary. Now I request Ms. Sarita Vasaretti, Managing Director of IMTA Labs Limited to provide you with the updates for the quarter and nine months ended 31st December 2025. Thank you. And over to you, ma’.
Harita Vasireddi — Managing Director and Whole Time Director
Am. Thank you. Shiva. Good evening everyone. I welcome you all to the Q3 and 9 months FY26 earnings call. Today I will Start with the business updates and then our CFO will take over to discuss the financial performance for the period ended 31st December 2025. I would like to report that Vimta Labs has recorded quarterly sales revenue of rupees 100.5 crores, showcasing sustained momentum with the growth of 10.2% on a year on year basis. This growth is a result of the pharmaceutical and food testing services contributing majorly. As innovation accelerates, quality norms become more stringent, the wellness sector continues to expand and the demand for uncompromising product quality and safety continues to surge.
With a wide array and advanced testing capabilities and strong domain proficiency, Vimta is well equipped to seize new growth opportunities in all our services Coming to discussing the services we provide in a little bit more detail, our biggest contributor to the revenue that is the pharmaceutical testing and research services. They continue to do well, but I’d like to share that we saw some lag in booking clinical during the quarter and we also faced certain unexpected operational challenges in the analytical services which resulted in some revenues getting deferred to next quarters on biologics contract research and development services.
I would like to again inform that the equipment procurement and the facility setup is well on track and we are confident of commercializing these services by quarter one of next fiscal. Our food testing division experienced good momentum during the quarter and we will see improved traction in the coming quarter. With certain tailwinds in place in the electrical and electronics division, revenues have remained steady and we continue to focus on increasing our penetration into the market. From an operational standpoint, the installation of second Chamber in our Life sciences facility for EMI EMC testing is well on track.
The current chamber is running at 24, 780 85% utilization, anchored by a strong scientific and operational base and encouraging market momentum. We are optimistic about driving continued growth across our service offerings. With this, I will hand over the call back to Shiva for a detailed discussion on the financials. Thank you.
Siva Rama Kambhampati — Chief Financial Officer
Thank you Ms. Haritha Good evening everyone and thank you for joining us for our Q3 and 9 months FY26 earnings call today, I’ll begin with an overview of our financial performance for the quarter and nine months ended December 31, 2025. After that, we’ll open the floor for questions before we move into the financials, I’d like to highlight that following the divestment of our diagnostic and pathological services business announced on August 30, 2024, the figures for the previous period have been regrouped to ensure a like for like comparison with the current quarter. We’ll start with the financial highlights for the quarter.
Total income for Q3FY26 stood at 1,005 million rupees as compared to 911 million in Q3 2025 a 10% 10.2% growth on an year on year basis. Quarter on quarter had seen a slight decline of 3.9% when compared to Q3FY25. EBITDA stood at 344 million in Q3FY26 as compared to 343 million in FY25 up by almost 0.4% year on year. EBITDA margins for the quarter stood at 34.3%. PAT in Q3 stood at 176 million as compared to 175 million in Q3FY25. A growth of 0.4% year on year. PAT margin for the quarter stood at 17.5%. Basic EPS in Q3FY26 was at 3.96 rupees coming to nine months performance.
Total income for nine months FY26 was at 3043 million as compared to 2521 million in previous year, so it has grown up by almost 20.7% year on year basis. EBITDA for nine months was at 1.68 million as compared to 915 million in FY25 up by almost 16.7% year on year. EBITDA margin stood at 35.1% nine months. FY26 PAT was at 564 million as compared to 484 million in FY25 with a 16.4% year only growth. PAT margin was at 18.5%. Basic EPS for nine months was at 12.7%. I’d like you to note that pursuant to the implementation of the New Labor Law from November 26th, 2026 we have recognized an amount of Rupees 1.6 crore as past service cost.
Considering the one time nature of this impact, we had disclosed it under exceptional items in the P and L account. On the balance sheet side we continue to have a net debt free balance sheet. With that we can now open the floor for Q and A. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Queue assembles. Participants who wish to ask question please press star and one. Our first question comes from the line of Preet Jain from Nivesha Investment Advisors. Please go ahead.
Preet Jain
Hello sir, am I audible?
Vishal Manchanda
Yes, go ahead.
Preet Jain
A couple of questions from my side. First being regarding our growth outlook, could you provide color on expected revenue trajectory for next 12 to 24 months? Specifically how should we think about the ramp up timelines for your current available capacity and at what stage do you anticipate reaching peak utilization levels?
Harita Vasireddi
The markets are very favorable in this industry whether you take food testing or within the pharma industry be it preclinical research or clinical research, even the market for electronics testing. So the environment is very conducive for companies to do well in this sort of a growing market. Coming to WMTA I think we have a good track record of 40 years. Be it science or systems or our business fundamentals, they’re all pretty strong. So growth we are very confident when it comes to the near term and even the long term. As such we don’t give any forward looking statements with respect to numbers.
So I will refrain from doing that. I can just share my confidence. On. What we think would be good growth future for the company.
Preet Jain
In past communication companies had a revenue target of 500 crores for current fiscal. So given the numbers of 9 quarters are out, is that expectation still intact? Do you expect that quarter flow will be a backend surge to bridge the remaining gap to that target?
Harita Vasireddi
Yeah, typically H2 tends to be better then H1. Like I was mentioning in my opening remarks there were a couple of events that happened that coincided for us and therefore you see that slight dip in quarter on quarter revenues. So we expect Q4 to be much better. That’s been the trend and so far nothing says that we will not have a better Q4. Now are we going to come to the run rate of 125 crores which is basically what I have been trying to share. Maybe not. We may not touch that number but I feel we will not be disappointed with where we landed by the end of the year.
Preet Jain
One more question from my side on the strategic shift towards CDMO and CRD move. Can you give update key? Can you give an update when these projects are coming into pipeline and when can we expect the revenues in Q1? FY27 you told so how much contribution can they provide to the top line?
Harita Vasireddi
Next fiscal will be the maiden year for the biologics contract research and development services. The maiden year. I don’t think we should be really looking at how big the numbers will be. It’s more about going out there and picking up some clients who can trust us with their projects and delivering them well so that we build confidence and good reputation with our first few projects. I think that’s more important. We will be ready to commercialize by Q1 and hopefully we will have a project also. But I won’t be able to say that now.
Preet Jain
Okay, thank you. Thank you for your.
operator
Thank you. Ladies and gentlemen who wish to ask a question may press star and 1. Our next question comes from the line of Disha from Sapphire Capital. Please go ahead.
Disha
Okay. Yeah. So you mentioned in your commentary that. There were some operational challenges we faced. So could you just elaborate a bit on what went wrong?
Harita Vasireddi
Nothing went wrong. We are doing a lot of restructuring within our facilities to accommodate for expansion of our analytical facilities. So there, I think there is some dependency on external sources to help us do those modifications there we experience some unexpected delays and this has impacted the productivities of certain teams.
Disha
Okay. And I think you mentioned that there was some spillover of revenue into Q3. So what would be the quantum of that? If you could just help.
Harita Vasireddi
That is too nitty gritty and let’s not get into that. I can just say that a couple of things happen together and therefore you see that slight dip in revenues quarter on quarter. I think from Q4 onwards we’ll be.
Disha
Back on our trajectory. Is that a fair assumption?
Harita Vasireddi
Yes.
Disha
Okay. All right. Okay, that’s it for my. Thank you.
operator
Thank you. Our next question comes from the line of Santosh Keshri from SKK Hus. Please go ahead.
Santosh Keshari
Am I audible?
operator
Yes, you’re audible.
Santosh Keshari
Thank you for giving me a chance. So my question is about Capex and. The return on capital employed. So what we can see is that the Capex is on an increasing trend from 2, 3 years back from 50 crore now to over the past 2, 3 years it is more than 70 crores and then ROC is something like getting not very regular at above 20%. So what could be the reason behind it? Are we seeing some concern in the market landscape or there is some work in progress and we can see the ROCE going up beyond 20% in the next few quarters.
Harita Vasireddi
So I think first on the capex spend, typically in our industry we invest what comes out of our depreciation amount of the previous year. That is a minimum must because you don’t want to be technologically obsolete and you also need capacities to expand or grow your revenues because Things like equipment you add on the go, you don’t buy and keep those capacities is idle unless you are developing a new service. So that’s typically the capex spend and we have been very much on target with that the last couple of years. If you have been following the company, you may know that we have done a lot of capacity infrastructure capacity expansion and also recently we announced a foray into biologics.
No formulation or process development services. So that involved additional CapEx. So that’s the reason you are seeing those additional numbers coming to roc? I think we have some of the best in this DIC CRO industry. I don’t see a problem there.
Santosh Keshari
Okay, so are we saying that we can get back 20% kind of ROCE in the next few quarters or it would be remaining under 20%.
Siva Rama Kambhampati
The ROC that you are seeing in the presentation is for the period of nine months. Okay. So that is compared for the full year in the previous periods. Having said that, this as MD has just mentioned with the addition of biologics division where we are spending and the revenues are yet to come up. So there is a slight dip in the ROC in current financial year. So it will come back to regular levels.
Santosh Keshari
Okay, thank you.
operator
Thank you. Participants who wish to ask questions may press star and one at this time. To ask a question. Please press star and one now. Our next question comes from the line of Diksha from sp. Please go ahead.
Diksha
Hi, thank you for the opportunity. I have two questions, ma’. Am. One we had discussed in past about the US exposure where I believe you had mentioned that it was about 35% and exports and then 60% of that which effectively translates into 20% of the top line to us. So if that proportion remains the same, if I look at it, top line contribution.
Harita Vasireddi
Yes, I think that has actually. The exports percentage has actually slightly gone up in Q3. So exports we are more or less doing Good. No, in Q3 we have export revenue.
Diksha
I’m sorry, can you repeat?
Harita Vasireddi
Almost 39% of our income is from exports which is actually better than the first half of the year.
Diksha
Okay. And out of 39 what would be US export? Ma’, am.
Harita Vasireddi
About maybe 60% is from US.
Diksha
That proportion remains.
Harita Vasireddi
Yeah, yeah, yes, sure.
Diksha
And second question, ma’, am, on this. Top line guidance I did not follow, are we sort of still more or less aligned with that 500 crore top line for the next year or that may be sort of revised?
Harita Vasireddi
No, no, next year we’re definitely aligned.
Diksha
So next year annual Target still remains 500 crore.
Harita Vasireddi
Like I said I don’t give out forward looking statement with respect to numbers. But since you know this 20, 25, 26 was a goal we took almost five, six years ago when we even had diagnostics. So that’s when we said we’ll share this vision with the market because it’s always good to share long term plans so that you know, you understand what we are working towards. Otherwise it’s. We don’t normally issue forward looking guidances on numbers.
Diksha
Okay, okay. And any plans on inorganic, ma’? Am? Because there are a lot of opportunity in the market for this. Your line of business typically where it is, lot of unorganized players are there who are trying to sort of get exit. Are we looking at that inorganic mode of growth or we are strictly.
Harita Vasireddi
No, no, in principle we do believe that the future would have some sort of inorganic componen with regards to our growth. But is there anything on the cards right away? I would say no.
Diksha
Okay, okay. That helps you ma’. Am. Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask question please press star and one. Sa. Our next question is from the line of Mr. Vishal Manchanda from Systematics Institutional Equities. Please go ahead. Vishal. Sir, please go ahead with your question.
Vishal Manchanda
Hi. Sorry, I was on mute. Ma’, am, in your opening comments you hinted that there was still some positive traction on the food front that you are witnessing and we’ll probably see good numbers from next quarter. Can you share some color on. Are there any positive regulatory developments there?
Harita Vasireddi
No. Food tends to be seasonal business and Q4 is typically the quarter which does the highest numbers in the whole year. So that’s why I mentioned tailwinds because in Q4 you generally see that seasonal benefit.
Vishal Manchanda
Right. But there are no major and there are no important regulatory changes happening in this space that can help.
Harita Vasireddi
Quite a few are happening, they are continuously happening. So lot of effort is being put to continuously export, expand our scope under the NABL certification also. So that is actually a good thing for the laboratory. And these are continuously happening. We can’t say no there is any major one. But small, small ones, they are the ones that add more and more testing revenue for the laboratories.
Vishal Manchanda
Okay. And second one on the clinical trial research space, have we been able to kind of get more clinical trial research projects?
Harita Vasireddi
Yes, like I mentioned, I think even in the previous call we are already working on a couple of more projects.
Vishal Manchanda
Okay. So we have initiated these projects, the new projects that we have got.
Harita Vasireddi
Yes, one is on its way and the other one is under initiation.
Vishal Manchanda
Okay. So we will see the impact going forward in subsequent quarters.
Harita Vasireddi
Small portion of our revenues because it’s just a year since we started. So even if it was doing well, the impact on the overall top line will still be very, very small. I wouldn’t attribute any growth in the previous quarters to clinical trials. It’s yet to become significant for us.
Vishal Manchanda
Okay, so just some clarity here on the how many parties. So these are the phase three trials, right? Unlike bioequivalence trial which are different, these are larger phase three trials and probably they fetch you more revenues than bio equivalence trials.
Harita Vasireddi
Is that understanding? Some. What we have done already are phase two, phase three. We are yet to do any, but it could be different kinds of trials. The population size can vary as small as 60, 90 subjects. The bigger trials which are in hundreds of crores could have much bigger populations. So here the variation is very high.
Vishal Manchanda
Okay, so you take the entire ownership of the trial or you basically help the sponsor conduct the trial for them.
Harita Vasireddi
We, we do the entire trial for them.
Vishal Manchanda
Okay. So basically the sponsor will be Vimta Labs. If I kind of go and do do a clinical trial search, Vimta Labs should be the sponsor name in those trials.
Harita Vasireddi
No sponsor is the customer.
Harita Vasireddi
Okay. Okay. So will your name figure out, figure up in the clinical trial?
Harita Vasireddi
No, I don’t think so.
Vishal Manchanda
Okay. Okay.
Harita Vasireddi
Yeah.
Vishal Manchanda
Like in some trials I could see like IQVIA names, IQVI being being the sponsor while the drug is owned by a company. But from the IQVI is a sponsor there of the trial.
Harita Vasireddi
I’ll have to then reconfirm. Yeah.
Vishal Manchanda
Okay. Okay. And just on the, on final one, on the biologics front, any, any direction you would like to give in the next three, four years, how do you expect this business to shape up? Can this be like one of your large verticals in the overall business?
Harita Vasireddi
I think it’s too soon for me to comment on it. We should go through a year and see how we are able to navigate in this market. Let me, allow me to come back to you maybe after a year on this, but it does have the potential.
Vishal Manchanda
So is this fair to say like a single biosimilar project would probably be much larger in, in terms of the value size. Like if you get a customer on board for a biosimilar project, your the potential revenue size of that single project should be typically larger than other, other projects that you would have in. On the analytical side.
Harita Vasireddi
When it comes to pilot. Yeah, sure, go ahead.
Satya Neerukonda
Yeah, it depends Vishal, at what stage are we interact? What stage are we Onboarding the projects. Biologics. We do multiple services for any biologics, Biosimilars and peptides. One is analytical services, one is characterization, one is on the clinical side. We do pre clinical studies and the new one which we are starting now is the formulation development service. If someone is only. Someone already has developed the process and he has some challenges in the process. He’s only looking for troubleshooting. And all the project size may be a little smaller than if you get the full project.
Let’s say he already has a clone which they have developed or they have secured a license clone. And from there all the way up to the process, up to the pilot scale development. So these are larger projects. So it depends on what is the amount of exposure on that particular project to us. But definitely, I mean if you get the full scale, let’s say like what we are setting up here, up to 20 liters, 50 liters. So as the scale increases, the price, I mean the project size or the project value also increases.
Vishal Manchanda
Okay. And we have capabilities across all the segments in place. We will not need to hire neither from a. Like you have human, you have personals and you also have equipments.
Satya Neerukonda
Both we have human. Yes. The team is on board, the equipments are on board. The site is ready. Now up to the process level, lab scale. We are, we are ready. Then the next scale up would be maybe after a year once we see how this traction builds up in the market.
Vishal Manchanda
You got it, sir. Thank you very much. That’s all from my side.
operator
Thank you. Participants who wish to ask Questions may press star and 1. Our next question comes from the line of Tanay Malpani, an individual investor. Please go ahead.
Tanaay Malpani
Hello. Am I audible?
operator
Yes, sir, you are audible. Please go ahead with your question.
Tanaay Malpani
First of all, I would like to congratulate the team that we have become a significant name in the CRTO industry. So I have two questions. One question is on the line of the EBITDA margins. So we are maintaining a very healthy EBITDA margin, strong financial year 2023. So do we expect the momentum to continue in terms of margin?
Harita Vasireddi
Yeah, these EBITDA margins, I always say plus, minus 1 or 2%. They are. They will be maintained in the at least near term.
Tanaay Malpani
Okay. And there has been a trend of an increase in the use of AI which is significantly boosting the EBITDA margins for various companies. So in our field, do we see the use of AI?
Harita Vasireddi
Yes, we work with a lot of technologies and all these technology companies have already built their AI components into these Technologies which we have been using for quite some time. In addition to that, WIMTA has set on a digital transformation path almost five years ago. So we have own in house digital transformation team that keeps working on our processes to make them more efficient and also help scale up the processes. So this is a continuous activity and that’s picking up a lot of momentum for us. Especially last year. We expect to see a lot more of this happening in the next year in our laboratories.
Tanaay Malpani
Okay. So we can expect further improvement in margins.
Harita Vasireddi
Margins. There is a plus side and a minus side also. On one side we are definitely pushing our efficiencies which is helping the cost of the escalation in cost of manpower and also some input material. We use a lot of chemicals, reagents, standards, columns. So on that side there is a continuous escalation in prices, manpower like in any other industry when we have been severely impacted with the rise in cost, especially post Covid. But all these years we have been able to successfully neutralize that by countering it with more efficiencies in our workflows.
Tanaay Malpani
Relating to manpower. There is an increasing competition in the Seattle landscape specifically. Is there any manpower attrition or. We are just in line.
Harita Vasireddi
We are on par with the industry, I would say. But is the attrition low? No, attrition is quite, quite high across the industry and it, it looks like now that’s going to be the norm.
Tanaay Malpani
Okay, so hopefully we are able to retain the team managerial positions.
Harita Vasireddi
Yes, we are able to retain people who are key and critical for the sustainability of science and growth within the organization.
Tanaay Malpani
Okay, thank you. And my next question is regarding the CRTO landscape that we are in the top five position in almost all of the segments we are, we have put our foot in. But in the electronics and electrical segments, how do we plan to get that status? Because there is several sectoral tailwinds there. But how can we capitalize on that? Is there any plan in line?
Harita Vasireddi
Yes, we have already doubled our capacity this year for en electronics and electrical testing division. So the growth is as per our expectation here. Just like in the food industry, you need more testing centers because typically customers tend to prefer. Because if you’re testing for example a drone or if you’re testing an electrical vehicle, very unlikely that you will bring your vehicle all the way some puna to test it in Hyderabad. So there are such constraints in this industry. We have filled a gap that existed especially in the Hyderabad region. So our majority of business comes from defense.
And some of you may know Hyderabad is a Good home for a lot of OEMs that supply to the defense sector. So that’s a gap that we were able to come in and quickly fill. And we were touching our capacities on the EMI EMC testings. Therefore we added one more chamber which came which got qualified in the last quarter itself. Going forward, to keep continuing to grow this business, we would have to open up more laboratories. That’s the way to grow this business.
Tanaay Malpani
Okay, thank you. That’s all from my side.
operator
Thank you. Ladies and gentlemen, if you wish to ask questions, please press star and 1. Our next question comes from the line of Aditya Cheddar from Incred Asset Management. Please go ahead.
Aditya Chheda
Hello, Good evening. Thank you for the opportunity. My question is on the employee expense and other expenses. While they are flat sequentially, if investment expenses growth for the Q3 and 9 month, is it related to the new facility and whether some of these investments are ahead of the revenues etc. Since the YoY growth in both of these segments is higher than the revenue growth, we would like to better understand the nature of investments or increasing expenses in both employee and other expenses.
Harita Vasireddi
Employee expenses, like you said, it’s flat as a percentage it’s slightly higher because of the slight dip in the top line. So there is nothing significantly that has grown there. Other expenses? Yes, we are increasing our marketing efforts overseas. So there will be some additional expense on account of this in the coming quarters as well.
Siva Rama Kambhampati
And facility expenses that we have added recently.
Harita Vasireddi
Yes, that’s a large facility that we added. So there will be a additional expense coming from there as well.
Aditya Chheda
Well noted.
Harita Vasireddi
Thank. You.
operator
Thank you. Participants who wish to ask Questions may press star and 1. As there are no further questions. I would now like to hand the conference over to management for closing comments.
Harita Vasireddi
Thank you everyone for joining the call and thank you for the nice questions. I want to thank you and Vishal and Systematics and the host for hosting this call. Thank you and have a pleasant evening. Bye bye.
Siva Rama Kambhampati
Thanks Vishal. Thanks Mohi.
operator
Thank you on behalf of Systematics Institutional Equities. That concludes this conference. Thank you for joining us and you may now disconnect your lines.