Vimta Labs Ltd. (NSE: VIMTALABS) on Wednesday reported a modest rise in quarterly revenue for the three months ended Dec. 31, 2025, while net profit was largely flat year-on-year and margins showed signs of pressure compared with the prior quarter.
For the third quarter of fiscal 2026 (Q3 FY26), the contract research and testing services provider posted total income of ₹1,005 million, up 10.2% from ₹911 million in the year-ago quarter. On a sequential basis, revenue declined 3.9% from ₹1,045 million in Q2 FY26.
Net profit after tax (PAT) from continuing operations was ₹176 million, essentially flat year-on-year (₹175 million) but down 11.7% on a quarter-on-quarter basis (₹199 million). Basic earnings per share were ₹4.0, compared with ₹3.9 a year ago and ₹4.5 in Q2 FY26.
EBITDA was ₹344 million, up 0.4% from ₹343 million in Q3 FY25 but down 6.6% from ₹369 million in the previous quarter. The EBITDA margin narrowed to 34.3% from 35.3% in Q2 FY26 and 37.6% in Q3 FY25. PAT margin also edged lower to 17.5% from 19.1% sequentially and 19.2% a year earlier.
In the nine months ended Dec. 31, 2025, total income rose 20.7% to ₹3,043 million from ₹2,521 million in the same period last year. EBITDA for the nine-month period was ₹1,068 million, up 16.7% with a margin of 35.1%, while PAT grew 16.4% to ₹564 million. Basic EPS for 9M FY26 was ₹12.7 versus ₹10.9 in the prior year.
The company’s profit before tax (PBT) for the quarter was ₹234 million, down from ₹263 million in the prior quarter, and ₹749 million for the nine-month period versus ₹640 million a year earlier.
Operational and Segment Highlights
Vimta Labs’ board noted it has only one reportable segment — contract research and testing services, which encompasses clinical research, bioanalytical, and other testing services. There were no separate financial disclosures provided for sub-segments in the regulatory filings.
The company said it completed the sale of its diagnostics and pathological services business in October 2024, and prior period figures for profit and loss have been regrouped to ensure comparability with the current period.
Management commentary emphasized demand across service offerings and improved operational efficiencies while acknowledging the impact of new labor codes, which was reflected as an exceptional item in the quarter.
Costs and Margins
Total expenses in Q3 FY26 were ₹644 million, slightly lower than ₹676 million in Q2 but higher than ₹568 million a year ago, driven by employee benefits and other operational costs. Material and testing costs remained broadly stable.
Industry Context
India’s contract research and testing sector has been expanding amid growing pharmaceutical development activity and regulatory scrutiny across food, environmental, and healthcare testing. However, macroeconomic pressures and regulatory changes such as updated labor laws have posed cost challenges for laboratories nationwide.
Company Description
Vimta Labs Ltd, headquartered in Hyderabad, India, is a contract research and testing organization offering a range of scientific and regulatory services spanning drug discovery and development, bioanalytical testing, clinical research, food and environmental testing, and related services. It divested its diagnostics and pathological services business in late 2024.