💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 24.5% YoY to INR 138.50 Cr in FY25. However, Q2 FY26 revenue of INR 36.66 Cr showed a decline of 10.9% compared to INR 41.16 Cr in Q2 FY25. The business is primarily focused on pharmaceuticals and research activities.

Geographic Revenue Split

Not disclosed in available documents, though the company recognizes significant international trade receivables, indicating a substantial export component.

Profitability Margins

FY25 Net Profit Margin was 5.7% (INR 7.93 Cr profit on INR 138.50 Cr revenue), a significant turnaround from a net loss of INR 2.62 Cr in FY24. Standalone Q2 FY26 revenue was INR 32.97 Cr, contributing 90% of consolidated revenue.

EBITDA Margin

FY25 EBITDA margin was approximately 14.3% (INR 20.17 Cr EBITDA on INR 140.73 Cr total income). This represents a core profitability improvement from FY24 where the company reported a PBT loss of INR 0.93 Cr.

Capital Expenditure

Historical Capex for FY25 was INR 15.65 Cr, primarily directed towards Property, Plant and Equipment, which increased 64% from INR 46.87 Cr to INR 76.90 Cr.

Credit Rating & Borrowing

Not disclosed in available documents. However, finance costs decreased 53.6% YoY to INR 2.27 Cr in FY25 due to a 55.2% reduction in non-current borrowings from INR 42.91 Cr to INR 19.21 Cr.

⚙️ Operational Drivers

Raw Materials

Pharmaceutical APIs and intermediates represent the primary raw material cost, with Cost of Materials Consumed at INR 37.07 Cr (26.8% of revenue) and Purchase of Stock-in-Trade at INR 19.88 Cr (14.4% of revenue) in FY25.

Capacity Expansion

Major projects were commissioned in FY25 as Capital Work-In-Progress decreased from INR 21.97 Cr to INR 0.20 Cr, while Property, Plant and Equipment increased by INR 30.03 Cr.

Raw Material Costs

Total material costs (consumed + stock-in-trade) were INR 56.95 Cr in FY25, representing 41.1% of revenue. This is a critical driver as material costs grew 24.8% YoY, closely tracking revenue growth.

Logistics & Distribution

Other expenses, which include distribution, were INR 30.34 Cr in FY25, representing 21.9% of revenue.

📈 Strategic Growth

Expected Growth Rate

24.50%

Growth Strategy

Growth is driven by expansion in pharmaceutical formulations and research services. The strategy involves commissioning new capacity (INR 30 Cr increase in PPE), strengthening the balance sheet through equity warrants (INR 27.20 Cr raised), and leveraging subsidiaries like Lyka BDR International for specialized markets.

Products & Services

Pharmaceutical formulations, medicines, and pharmaceutical research services.

Brand Portfolio

Lyka

Market Expansion

The company operates through subsidiaries Lyka BDR International Limited and Lyka Exports Limited to target international and specialized pharmaceutical segments.

Strategic Alliances

Lyka BDR International Limited represents a strategic partnership in the pharmaceutical space.

🌍 External Factors

Industry Trends

The pharmaceutical industry is evolving towards higher research intensity and specialized formulations. Lyka is positioning itself by commissioning new PPE and maintaining a dedicated research division.

Competitive Moat

The company's moat is built on its established 'Lyka' brand and research capabilities. Sustainability depends on the successful recovery of international dues and maintaining the pace of product innovation.

Geopolitical Risks

International trade receivables are subject to geographic and regulatory risks, leading to recent credit loss provisions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pharmaceutical manufacturing standards and international trade regulations. The company maintains compliance with Ind AS and SEBI Listing Regulations.

Taxation Policy Impact

Effective tax rate for FY25 was 28.7% (INR 3.19 Cr tax on INR 11.12 Cr PBT).

Legal Contingencies

The company has pending litigations disclosed in Note 36 of the consolidated financial statements as of March 31, 2025. Specific case values were not provided in the snippets.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recoverability of international trade receivables, which necessitated a INR 4.84 Cr provision in Q2 FY26, potentially impacting net margins by 10-15%.

Geographic Concentration Risk

Not disclosed in available documents, but international markets are a significant focus area.

Credit & Counterparty Risk

High credit exposure with trade receivables at INR 43.08 Cr, representing 31% of FY25 revenue, up from 24% in FY24.