Zenotech Laboratories Ltd (532039) Quarterly Report Analysis & Insights

Zenotech Laboratories Ltd

| Standalone Audited Financial Results for the Quarter and Year Ended March 31, 2026

⬤29th Apr 26

Summary : Zenotech Laboratories reported a significant net loss for FY26, despite resolving past irregularities and focusing on standalone pharma operations.

Quarterly Report Analysis & Insights

Financial Disclosures

Cost of materials consumed: 42.75 lakhs (FY26), 84.02 lakhs (FY25)
Employee benefit expenses: 1,552.79 lakhs (FY26), 1,237.78 lakhs (FY25)
Depreciation and amortization expense: 711.34 lakhs (FY26), 696.01 lakhs (FY25)
Other expenses: 1,889.72 lakhs (FY26), 1,564.89 lakhs (FY25)
Revenue from operations: 3,956.20 lakhs (FY26), 3,897.57 lakhs (FY25)
Other operating income: 405.16 lakhs (FY26), 407.14 lakhs (FY25)
Net cash used in operating activities: 1,020.48 lakhs (FY26), 954.49 lakhs (FY25)
Net cash used in investing activities: (649.06) lakhs (FY26), 1,523.22 lakhs (FY25)
Net increase in cash and cash equivalents: 371.42 lakhs (FY26), 2,477.71 lakhs (FY25)
Total Assets: 11,115.35 lakhs (Mar 26), 11,084.35 lakhs (Mar 25)
Total Equity: 9,512.11 lakhs (Mar 26), 9,613.08 lakhs (Mar 25)
Cash and cash equivalents: 3,028.93 lakhs (Mar 26), 2,657.51 lakhs (Mar 25)
Trade receivables: 877.68 lakhs (Mar 26), 745.43 lakhs (Mar 25)
Standalone financial results only
Consolidated statements no longer applicable due to defunct subsidiaries

Corporate Overview

Primarily India (standalone focus)
Past overseas subsidiaries defunct/winding up
Assessing financial implications of new Labour Codes
Leasing income from biotech facility
Pharmaceuticals segment
Leasing biotech facility for R&D
Sun Pharmaceutical Industries Limited (for R&D facility lease)
Revenue from operations
Other operating income (rentals for biotech facility)

Risk Factors

Significant net loss for the year.
New Labour Codes impact liabilities.
Past financial irregularities history.
Overseas subsidiaries defunct/winding up.

Key Drivers

Past irregularities abated and settled.
Export obligation defaults resolved.
Biotech facility leased for R&D.
Focus on standalone pharma segment.

Auditor’s Report

Unmodified audit opinion

Board Commentary

Past financial and non-financial irregularities abated/settled
Amnesty Scheme for export obligation default settled
Winding up order for Nigeria subsidiary, RBI filings pending

Corporate Governance

Past financial and non-financial irregularities abated/settled

Management Discussion & Analysis

Future Strategy

Monitoring developments of new Labour Codes

Operational Focus Areas

Evaluating impact of new Labour Codes on liabilities

Performance Drivers

Revenue from operations increased slightly year-on-year
Employee benefit expenses increased significantly

Risk Control Measures

Assessing financial implications of new Labour Codes

Critical Risks

Significant net loss for the financial year
Increased employee benefit and other expenses
Impact of new Labour Codes on liabilities