Zim Laboratories Limited (ZIMLAB)
₹144.76 +3.18% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Zim Laboratories' revenue was ₹94.2 Cr (+31.2% year on year, -10.5% on the previous quarter), and net profit ₹-4.0 Cr (a bigger loss than a year earlier); the operating margin was 2.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹94.2 | +31.2% | -10.5% |
| Operating profit | ₹2.5 | -42.5% | -65.9% |
| Net profit | ₹-4.0 | loss widened | to loss |
| EPS (₹) | -0.75 | loss widened | to loss |
| Operating margin | 2.6% | — | — |
ZIMLAB delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 33.44% of the ZIMLAB shares traded on NSE were taken to delivery, against the stock's own 20-session average of 48.98%. The price rose 3.18% on unusually low delivery, so more of the move than usual was intraday trading.
Delivery in the last 5 sessions: 32.6% · 26.8% · 42.4% · 56.6% · 33.4%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
ZIM Laboratories has secured a Certificate of Good Manufacturing Practice (GMP) Compliance from Australia's Therapeutic Goods Administration (TGA) for its Kalmeshwar facility in Nagpur. The certification was issued on October 15, 2026, following inspections in April 2026, and is valid until June 21, 2028. It covers multiple non-sterile finished product dosage forms, including soluble films, wafers, tablets, capsules, and granules. This regulatory clearance paves the way for commercialization in the Australian market and provides supporting GMP credentials for other Rest of World (RoW) territories.
- TGA GMP certification issued on 15 October 2026 following an inspection on 18 and 20–21 April 2026
- Approval covers the Nagpur facility (B-21/22, MIDC Area, Kalmeshwar) and is valid until 21 June 2028
- Scope spans non-sterile finished products including soluble films, wafers, tablets, capsules, and granules
- No further conditions were imposed on the covered manufacturing operations
CARE Ratings Limited has reaffirmed Zim Laboratories' long-term bank facilities rating at 'CARE BBB' while revising the outlook from Stable to Negative across Rs 127.48 crore of debt. Additionally, the rating agency reaffirmed its short-term bank facilities rating at 'CARE A3' for an amount of Rs 12.00 crore. The rated debt facilities total Rs 139.48 crore, which is substantial relative to the company's total balance sheet debt of Rs 127 crore and TTM revenue of Rs 397 crore. The negative outlook revision indicates heightened credit pressure, which comes following net losses reported in Q1 FY27 (Rs -4.02 crore).
- Long-term bank facilities of Rs 127.48 crore reaffirmed at 'CARE BBB' with outlook revised from Stable to Negative
- Short-term bank facilities of Rs 12.00 crore reaffirmed at 'CARE A3'
- Total bank facilities covered under the credit rating action aggregate to Rs 139.48 crore
- Rated long-term debt of Rs 127.48 crore represents ~100% of the company's total reported debt of Rs 127 crore
Zim Laboratories Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Registrar and Transfer Agent MUFG Intime India Private Limited, covers the quarter ended September 30, 2026. It confirms that all securities received for dematerialisation during the period were duly verified, accepted or rejected, and listed on the respective stock exchanges. This is a standard quarterly administrative filing with no financial or operational impact.
- Compliance certificate submitted for the quarter ended 30th September, 2026
- Issued by RTA MUFG Intime India Private Limited dated 03-10-2026
- Filed pursuant to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Disclosed to BSE and NSE on 08/10/2026
Zim Laboratories Limited has incorporated a 100% wholly owned subsidiary named 'ZIM Laboratories SpA' in Santiago, Chile on September 9, 2026. The holding company subscribed to 14,100 shares at a face value of CLP 1,000 each for a total cash outlay of CLP 14.1 million (under ₹0.02 crore), representing an immaterial capital commitment relative to its ₹287 crore net worth. The subsidiary aims to expand the company's pharmaceutical business across the LATAM region, complementing prior geographic expansions in Australia and Latvia. In the context of Zim's ₹397 crore TTM revenue and ₹4 crore TTM PAT, this administrative establishment is an initial entry step with negligible near-term financial impact.
- Incorporated wholly owned subsidiary 'ZIM Laboratories SpA' in Santiago, Chile on September 9, 2026
- Subscribed 14,100 shares at a face value of CLP 1,000 each via cash consideration
- Holding company retains 100% ownership and control
- Targeted at expansion and development of pharmaceutical business across the LATAM region
Zim Laboratories Limited announced that its wholly-owned subsidiary, ZIM Laboratories Limited FZE, has completed the full investment in step-down subsidiary ZIM Scientific Office LLC (ZIM SO). The investment comprises two tranches previously disclosed on March 28, 2025 (AED 4,66,000) and August 7, 2025 (AED 4,50,000), totaling AED 9,16,000 (~Rs 2.1 crore). Following the completion of this investment, ZIM FZE maintains a 100% shareholding in ZIM SO. Given the modest transaction size relative to the company's Rs 397 crore TTM revenue, this represents an administrative completion of an overseas subsidiary funding.
- Completed investment of AED 4,66,000 and AED 4,50,000 (total AED 9,16,000) in ZIM Scientific Office LLC.
- Investment was executed via wholly-owned subsidiary ZIM Laboratories Limited FZE.
- Post-investment, ZIM FZE retains 100% equity ownership in step-down subsidiary ZIM SO.
- Total capital deployed is approximately Rs 2.1 crore, representing under 0.6% of TTM revenue.
Zim Laboratories reported a 31.2% YoY increase in Q1 FY27 revenue to ₹94.2 crore, driven by its core pharmaceutical business. However, the company posted a net loss of ₹4 crore for the quarter, compared to a ₹1.9 crore loss YoY, due to higher employee costs and compliance-related investments. A critical update is the completion of the EU-GMP re-inspection in May 2026; the company is now awaiting the final report to unlock regulated markets. Management has provided a revenue guidance of approximately ₹420 crore for FY27, excluding potential upsides from the EU-GMP certification.
- Q1 FY27 revenue increased 31.2% YoY to ₹94.2 crore, representing ~25% of TTM revenue.
- EBITDA margin stood at 3.7% (₹3.4 crore), impacted by leadership strengthening and utility costs.
- EU-GMP re-inspection by German and Portuguese authorities completed in May 2026; final report is pending.
- Noble Innovative Products (NIP) and Oral Thin Films (OTF) contributed 18% to total operating income.
- Total debt stood at ₹145.2 crore as of June 30, 2026, compared to a net worth of ₹287 crore.
Zim Laboratories Limited (ZIMLAB) has announced the results of its postal ballot, where shareholders approved revised remuneration structures for Managing Director Dr. Anwar Daud and Whole-Time Director Mr. Zulfiquar Kamal. Both special resolutions passed with over 99.98% of the votes cast in favor. A total of 25.8 million votes were polled, representing 48.25% of the company's total share capital. The promoter group, which holds approximately 30.4% of the company, voted 100% in favor of the revisions.
- Special resolutions for MD and WTD remuneration passed with 99.98% majority support.
- Total of 25,836,978 votes were polled out of 53,549,037 total shares, a 48.25% turnout.
- Promoter group cast 16,258,500 votes, all 100% in favor of the resolutions.
- Public non-institutional shareholders cast 8,977,739 votes with 99.96% in favor.
- The voting process concluded on August 11, 2026, based on a record date of July 3, 2026.
ZIM Laboratories has published the audio recording of its Q1 FY27 earnings conference call held on August 8, 2026. This routine disclosure provides investors with management's detailed commentary on the company's performance, where TTM revenue stands at Rs 374 Cr with a thin net profit of Rs 6 Cr. The call is significant for understanding the progress of EU-GMP remediation and the growth of the New Innovative Products (NIP) segment, which previously contributed 19% to operating income. Currently, the stock trades at a high P/E of 94.1 despite a low ROCE of 5.0%.
- Audio recording of the Q1 FY27 earnings call was made public on August 8, 2026, via a digital link.
- Company reported TTM revenue of Rs 374 Cr and a low operating profit margin of 8.0%.
- Debt levels are maintained at Rs 127 Cr against a net worth of Rs 287 Cr, resulting in a D/E ratio of 0.44.
- Promoter holding remains at 30.35% as of the latest reporting period in March 2026.
ZIM Laboratories reported a 31.2% YoY increase in Total Operating Income to ₹94.2 Cr for Q1 FY27, driven by a 3x surge in innovative product revenue. However, EBITDA fell 40% YoY to ₹3.4 Cr as margins compressed from 7.9% to 3.7% due to higher utility and employee costs. The company reported a net loss of ₹4.0 Cr, widening from a ₹1.9 Cr loss in the previous year's quarter. A key focus remains the EU-GMP remediation process, which is in its final stages with a potential EMA re-audit pending.
- Total Operating Income grew 31.2% YoY to ₹94.2 Cr, though it declined 10.5% QoQ due to Middle East logistics challenges.
- EBITDA margins contracted by 430 bps to 3.7%, primarily due to a ₹7.2 Cr increase in employee and other operating expenses.
- Innovative products (NIP + OTF) revenue tripled YoY to ₹13.8 Cr, now contributing 15% of total revenue vs 6% in Q1 FY26.
- R&D investment remained significant at ₹8.2 Cr, representing 8.7% of total operating income.
- Regulatory momentum continued with 17 new filings and 10 Marketing Authorizations (MAs) received during the quarter.
ZIMLAB reported a 31.2% YoY increase in revenue to ₹94.18 Cr for the quarter ended June 30, 2026. However, the company recorded a consolidated net loss of ₹4.02 Cr, widening from a loss of ₹1.87 Cr in the same period last year. Sequentially, revenue declined 10.5% from ₹105.27 Cr in Q4 FY26, and the company swung from a profit to a loss. Total expenses of ₹100.74 Cr exceeded total income, driven by a 31.3% YoY rise in employee benefit costs.
- Revenue from operations grew 31.2% YoY to ₹94.18 Cr from ₹71.76 Cr in Q1 FY26.
- Consolidated net loss widened to ₹4.02 Cr compared to a loss of ₹1.87 Cr in the year-ago quarter.
- Employee benefit expenses increased significantly to ₹19.18 Cr, up from ₹14.61 Cr YoY.
- Finance costs remained high at ₹3.64 Cr, representing approximately 3.8% of total income.
- Basic and Diluted EPS for the quarter stood at -₹0.75, compared to -₹0.38 in Q1 FY26.
Zim Laboratories Limited has scheduled its Q1FY27 earnings conference call for August 7, 2026, at 12:00 PM IST. The management, including the Director of Finance and the CFO, will discuss the company's quarterly performance. This follows a fiscal year (FY26) where the company reported a revenue of ₹374.4 Cr and a PAT of ₹5.8 Cr. Investors will likely seek updates on the EU-GMP remediation process and the growth of the New Innovative Products (NIP) segment.
- Earnings conference call scheduled for August 7, 2026, at 12:00 PM IST
- Management participants include the Director of Finance and the Chief Financial Officer
- Company reported TTM revenue of ₹374 Cr and a PAT of ₹6 Cr as per latest context
- NIP and Oral Thin Films (OTF) segments previously contributed 19% of total operating income in Q2 FY26
Zim Laboratories Limited has allotted 109,451 equity shares to eligible employees under its ESOP 2023 scheme. The allotment, approved on July 13, 2026, was executed at an exercise price of Rs 77.40 per share. This transaction resulted in a total capital inflow of approximately Rs 0.85 crore. The equity dilution is minimal, representing approximately 0.20% of the pre-allotment share capital.
- Allotment of 109,451 fully paid-up equity shares of face value Rs 10 each.
- Total money realized by the company from the exercise of options is Rs 84,71,507.40.
- Exercise price fixed at Rs 77.40 per share, including a premium of Rs 67.40.
- Paid-up equity share capital increased from Rs 53.55 crore to Rs 53.66 crore.
Zim Laboratories has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The document, issued by its Registrar and Transfer Agent (RTA), MUFG Intime India Private Limited, confirms that share certificates received for dematerialization during the quarter ended June 30, 2026, were processed and cancelled as per regulations. This is a standard administrative filing required for all listed entities to ensure the integrity of electronic shareholding records. It has no impact on the company's financial performance or business operations.
- Compliance certificate issued for the quarter ended June 30, 2026
- RTA MUFG Intime India Private Limited confirmed processing of dematerialization requests
- Company maintains TTM revenue of ₹374 Cr and TTM PAT of ₹6 Cr
- Promoter holding reported at 30.35% as of March 2026
Zim Laboratories is seeking shareholder approval via postal ballot to revise the remuneration structure for its Managing Director and Whole-Time Director. The proposed fixed salary for MD Dr. Anwar Daud is up to ₹3.00 Cr per annum, while WTD Mr. Zulfiquar Kamal's fixed salary is proposed up to ₹2.50 Cr. This combined fixed pay of ₹5.50 Cr is significant compared to the company's TTM PAT of ₹6 Cr. The voting period for these special resolutions runs from July 13, 2026, to August 11, 2026.
- Proposed fixed remuneration for MD Dr. Anwar Daud increased up to ₹3.00 Cr per annum
- Proposed fixed remuneration for WTD Mr. Zulfiquar Kamal increased up to ₹2.50 Cr per annum
- Performance Linked Incentive (PLI) for the MD capped at 42.50% of the fixed salary
- Performance Linked Incentive (PLI) for the WTD capped at 25% of the fixed salary
- E-voting period concludes on August 11, 2026, with results by August 13, 2026
Zim Laboratories Limited has scheduled a physical one-on-one meeting with Canara HSBC Life Insurance for July 3, 2026. This institutional interaction occurs as the company manages a recovery, with TTM revenue of Rs 374 Cr and a relatively thin net profit of Rs 6 Cr. The company is currently focused on New Innovative Products (NIP) and Oral Thin Films (OTF), which together with licensing income represented 19% of operating income in Q2 FY26. No unpublished price-sensitive information is expected to be disclosed during the session.
- One-on-one physical meeting scheduled for July 3, 2026, with Canara HSBC Life Insurance.
- Company reported TTM revenue of Rs 374 Cr with an operating profit margin of 8.0%.
- New Innovative Products (NIP) and Oral Thin Films (OTF) contributed Rs 8.1 Cr in Q2 FY26.
- Promoter holding stands at 30.35% as of March 2026, down from 33.26% in December 2025.
Financial Performance
Revenue Growth by Segment
Total operating income for Q2 FY26 was INR 887 million, a 23.6% sequential increase. The Pharmaceutical segment contributed 83% of revenue (INR 732 million), growing 30.7% QoQ. The Nutraceutical segment contributed 17% (INR 155 million), but faced a YoY decline due to the deferment of institutional orders and softer domestic demand (INR 38 million vs INR 50 million in Q1).
Geographic Revenue Split
Exports are the primary driver, accounting for 83% of total revenue (INR 728 million in Q2 FY26), reflecting a 21% sequential improvement. Domestic business contributed approximately 17% (INR 127 million), remaining broadly stable compared to previous quarters.
Profitability Margins
Profitability showed sequential improvement with a net loss reduction from INR 19 million in Q1 FY26 to INR 4 million in Q2 FY26. This was driven by a better product mix and operational efficiencies. Operating profit margin for FY24 was 12.04%, down from 14.33% in FY23 due to higher employee costs.
EBITDA Margin
EBITDA margin for Q2 FY26 stood at 8.8%, an improvement from 7.9% in Q1 FY26. Management expects a significant jump in EBITDA during H2 FY26 to align with FY25 levels, as historically 60% of business occurs in the second half of the fiscal year.
Capital Expenditure
Total planned debt-funded capex is INR 60.42 crore as of June 30, 2025. This includes INR 40.87 crore from external debt and INR 21.53 crore from internal accruals. Specific projects include a new Tamsulosin and Dutasteride facility and the relocation of the Cephalosporin unit to meet EU-GMP standards.
Credit Rating & Borrowing
The company maintains an 'Adequate' liquidity position with ratings reaffirmed by Acuité. Borrowing includes a planned INR 40.87 crore for capex. Interest costs are a factor in the financial risk profile, which moderated in FY24 due to higher debt levels for working capital and capex.
Operational Drivers
Raw Materials
Specific chemical names and their exact percentage of total cost are not disclosed in the available documents; however, the company produces Cephalosporin, Tamsulosin, and Dutasteride formulations.
Import Sources
The company sources raw materials both internationally and from domestic suppliers within India to ensure business continuity and mitigate geopolitical risks.
Capacity Expansion
Planned expansion includes a new manufacturing facility for Tamsulosin and Dutasteride and the relocation of the Cephalosporin unit to comply with EU-GMP and WHO-GMP standards. Capex of INR 5-7 crore is also allocated for completing balance projects and INR 5 crore for CAPA implementation.
Raw Material Costs
Raw material costs are managed through a strategy of diversifying geographic presence and establishing alternative domestic sources to reduce dependence on single regions and mitigate price volatility.
Manufacturing Efficiency
Efficiency is being driven by a shift toward more digitized operations and a focus on high-margin New Innovative Products (NIP) and Oral Thin Films (OTF).
Logistics & Distribution
Distribution is global, covering 50+ countries including Asia, Africa, MENA, Latin America, and the EU. Exports account for 83% of revenue, making logistics a critical component of the cost structure.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
Growth will be achieved by completing EU-GMP remediation to unlock regulated markets, expanding the New Innovative Products (NIP) and Oral Thin Films (OTF) portfolio, and executing a robust order book in H2 FY26. The company is also pursuing contract manufacturing at alternate sites for 'Star product 1' to bypass current regulatory hurdles.
Products & Services
Small formulation dosages, sustained and controlled-release pellets, Oral Thin Films (OTF), New Innovative Products (NIP), Tamsulosin, Dutasteride, and Cephalosporin formulations.
Brand Portfolio
ZIM Laboratories, ZIM Health Technologies, ZIM Thinorals.
New Products/Services
New Innovative Products (NIP) and Oral Thin Films (OTF) contributed INR 81 million in Q2 FY26. Combined with licensing income (INR 29 million), these segments represent 19% of total operating income.
Market Expansion
Targeting high-potential developed markets in FY26, with recent investments in subsidiaries like ZIMTAS PTY LTD (Australia) and SIA ZIM Laboratories (Latvia) to strengthen local presence.
Market Share & Ranking
The company holds a 3 Star Export House Status from the Ministry of Commerce & Industry, India.
Strategic Alliances
The company uses strategic partnerships and local offices in 50+ countries; specific partner names for JVs are not disclosed.
External Factors
Industry Trends
The pharmaceutical industry is evolving toward stricter regulatory standards (EU-GMP/WHO-GMP) and innovative drug delivery systems like Oral Thin Films. ZIM is positioning itself as an innovation-led player to capture higher margins in developed markets.
Competitive Landscape
Faces intense competition from global generic players and local manufacturers in Pharmerging markets, leading to pricing pressures.
Competitive Moat
Moat is built on specialized R&D in drug delivery (OTF/NIP) and a 30-year track record in complex export markets. Sustainability depends on successfully regaining EU-GMP certification to monetize its patent/MA portfolio.
Macro Economic Sensitivity
Highly sensitive to global economic conditions and USD currency availability in 'Rest of World' (ROW) markets, which impacted the Nutra segment's ability to receive advance payments.
Consumer Behavior
Increased sensitivity toward product performance and a shift toward innovative dosage forms (sustained release/OTF) in both Pharma and Nutra segments.
Geopolitical Risks
Exposure to political instability and trade restrictions in 50+ countries. Mitigation involves geographic diversification and sourcing alternative raw materials domestically.
Regulatory & Governance
Industry Regulations
Operations are heavily impacted by EU-GMP (European Union Good Manufacturing Practices) suspension, which has delayed the innovative-led segment. Compliance with WHO-GMP and DGFT (3 Star Export House) standards is also required.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline for EU-GMP remediation; failure to reinstate clearances will continue to stall growth in high-margin regulated markets.
Geographic Concentration Risk
83% of revenue is concentrated in export markets, with significant exposure to Pharmerging regions and the Middle East.
Third Party Dependencies
Dependency on a single customer for 14-15% of revenue and reliance on institutional orders for the Nutraceutical segment.
Technology Obsolescence Risk
The company is mitigating technology risks by investing 9.7% of revenue into R&D and shifting toward digitized manufacturing processes.
Credit & Counterparty Risk
Receivables risk is highlighted by the deterioration of the working capital cycle to 125 days and delays in receiving letters of credit from ROW customers.
