Fermenta Biotech Limited, a leading manufacturer of scientifically validated nutritional ingredients, reported a robust performance for the fourth quarter and full financial year 2025 (Q4/FY25), marked by significant growth in revenue, profitability, and operational efficiency.

Q4 FY25 Highlights reflect a revenue of ₹143.7 crore, representing a 40% increase compared to the same period last year, despite a slight 9% sequential dip from the previous quarter. EBITDA surged dramatically by 280% year-on-year to ₹40.8 crore, underscoring the company’s improved cost controls and operational leverage. Profit after tax (PAT) for Q4 stood at ₹33.3 crore, a substantial increase of ₹40.5 crore over the previous year, demonstrating Fermenta’s strengthened bottom line.

For the full FY25, Fermenta posted revenues of ₹481.3 crore, up 39% year-on-year, alongside a 209% growth in EBITDA to ₹121.6 crore. The company’s earnings per share (EPS) after exceptional items rose to ₹26.35, reflecting enhanced shareholder value.

Business Growth and Innovation:
Fermenta’s growth was fueled by a 48% volume increase in human nutrition products and a 24% rise in animal nutrition volumes over FY24. A major milestone was the successful completion of validation batches for its spray-dried Vitamin D3 100,000 IU/g powder (Vitamin D3 100 SD) for human nutrition. Additionally, Fermenta commercialized plant-based Vitamin D3 active ingredients under its proprietary technology—Vitadee Green 1 MIU Oil and Vitadee Green 100 SD powder—now advancing through customer and regulatory qualifications globally.

The company’s commitment to quality was reinforced by an approval letter from GAIN, validating its global standards in nutritional products. Its German subsidiary showcased outstanding standalone revenue growth of 412% year-on-year, reaching ₹38.2 crore, with a profitable turnaround evidenced by an EBITDA of ₹13.9 crore compared to losses the prior year. The US subsidiary also posted strong growth, with revenues increasing 81% to ₹50.4 crore, narrowing losses significantly.

Financial Health and Operational Efficiency:
Fermenta demonstrated prudent financial management by reducing gross debt by 17% to ₹109 crore and improving liquidity ratios, including a current ratio of 1.52 and a quick ratio of 0.87. The company enhanced profitability with an EBITDA margin expansion to 26%, a return on equity (ROE) jump to 23%, and return on assets (ROA) rising to 13%. These indicators highlight a well-managed operational turnaround and capital efficiency.

Operating cash flow remained resilient at ₹41 crore, supported by strategic inventory buildup aligned with revenue growth. Capital expenditures were maintained prudently at ₹22 crore, balancing growth with investing discipline. Fermenta also achieved a positive free cash flow of ₹19 crore in FY25.

Cost Optimization:
Cost control initiatives reduced raw material costs from 50% to 35% of revenue, while employee costs dropped from 22% to 15%. Manufacturing expenses also decreased, contributing to margin expansion despite inflationary pressures in energy and maintenance.

Revenue Mix and Market Expansion:
Fermenta’s revenue streams remained diversified across human and animal nutrition products, with Vitamin D3 human nutrition accounting for 45% of consolidated revenue, and animal nutrition at 14%. The company also saw growth in its other biotechnology and chemical solution segments.

The company’s strategic pricing, product innovation, and international market penetration contributed to balanced revenue growth. International markets accounted for 60% of revenues in FY25, driven by robust expansion in Europe and North America, while domestic Indian markets contributed 40%, supported by rising preventive health awareness, government initiatives, and growing demand for fortified and functional foods.

Strategic Vision and Value Proposition:
Fermenta Biotech’s core vision—“Nutritional wellness for all, on every plate, in every meal”—drives its leadership in Vitamin D3 and nutritional ingredients. The company’s integrated business model combines state-of-the-art manufacturing, decades of expertise, strong R&D, and global scale to deliver science-backed solutions to over 350 customers across 60+ countries.

With a diversified customer base and product portfolio spanning pharmaceuticals, dietary supplements, food and beverages, veterinary, and animal feed industries, Fermenta aims to support global health and preventive care. Its ongoing innovation pipeline focuses on plant-based nutrients, eco-friendly solutions, and nutrigenomics, aligning with evolving consumer preferences and regulatory standards worldwide.

Conclusion:
Fermenta Biotech’s Q4 and FY25 results mark a significant milestone in its operational turnaround and global growth strategy. With robust financial performance, technological innovation, and expanding market reach, the company is well-positioned for sustained long-term value creation for its stakeholders.

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.