TickerSutra

NSE: FERMENTA · BSE: 506414 · ISIN INE225B01021

Fermenta Biotech Limited stock analysis

Fermenta Biotech Limited ranks #1736 in the TickerSutra evidence-ranked universe with a score of 51/100 and 95% data confidence. The latest captured fundamentals show ROCE of 20.6%, quarterly sales growth of -10.6% and quarterly profit growth of -55.4%.
Complete evidence gate pass governance reviewUpdated 29 Sept 2026
TICKERSUTRA SCORE51/100

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#1736 of 5,430 ranked equities
Market capitalisation₹1,419.3cr
ROCE20.6%
Quarterly sales growth-10.6%
Quarterly profit growth-55.4%
P/E ratio25.9×
Promoter pledge0.0%

INVESTMENT EVIDENCE

What supports—and challenges—the thesis

Evidence in favour

  • ROCE is 20.6%
  • Low debt/equity of 0.28×
  • Strong CFO/EBITDA of 0.92×
  • CWIP indicates an active capacity pipeline
  • No promoter shares are reported as pledged

Risks and constraints

  • Operating margin has compressed materially

Still unresolved: Related-party exposure · Broad media sentiment

FINANCIAL TRAJECTORY

Recent operating history

PeriodRevenueOperating profitNet profitOperating margin
2022₹397cr₹62cr₹15cr16.0%
2023₹349cr₹18cr₹-53cr5.0%
2024₹335cr₹28cr₹-24cr8.0%
2025₹468cr₹115cr₹76cr25.0%
2026₹523cr₹101cr₹70cr19.0%
TTM₹511cr₹90cr₹58cr18.0%
Debt / equity0.28×
CFO / EBITDA0.92×
Operating margin18.0%
Free cash flow₹63cr
Sales CAGR · 3Y14.4%
Profit CAGR · 3YUnavailable

EXCHANGE EVENT TRIGGERS

Latest corporate disclosures

0 positive catalysts0 negative catalysts3 routine filings

MANAGEMENT COMMENTARY

Signals from filed documents

Capacity expansion plansHigh severity · 6 mentions
Positive catalyst

Employee, sales and administrative costs rose modestly as the business added capacity and widened market development, keeping the margin profile anchored while funding growth. Cost Components FY26 Key Drivers Raw Materials Employee Cost Manufacturing Expenses Sales & Marketing Administrative Finance Costs Improved sourcing mix Capacity expansion adds heads Operating leverage on higher volumes Wider market development

Operating leverageHigh severity · 7 mentions
Positive catalyst

Manufacturing leverage offset selective cost investment Finance costs eased on continued deleveraging Margins protected while funding growth Cost Discipline Anchors Margins The cost base held broadly stable as a share of revenue. Manufacturing expenses fell to 12% on operating leverage from higher volumes, and finance costs eased to 2% on continued deleveraging. Raw materials edged down to 37% on an improved sourcing

Debt reductionModerate severity · 7 mentions
Positive catalyst

Manufacturing leverage offset selective cost investment Finance costs eased on continued deleveraging Margins protected while funding growth Cost Discipline Anchors Margins The cost base held broadly stable as a share of revenue. Manufacturing expenses fell to 12% on operating leverage from higher volumes, and finance costs eased to 2% on continued deleveraging. Raw materials edged down to 37% on an improved sourcing

Market share gainModerate severity · 1 mention
Positive catalyst

Also approved by WFP Our dedicated Premix plant has also received GAIN certification 100+ scientists & engineers 75+ years of expertise 15+ key certifications 400+ global customers Management Discussion and Analysis Annual Report 2025-26 | 17 Note: Maps are not to scale. Seventy-five years of accumulated process know-how, a core of scientists and engineers, and deep expertise in complex and green chemistry are what turn

Regulatory updatesModerate severity · 31 mentions
Constructive

To our employees: thank you for your excellence and hard work. To our customers, regulators, and banking and supply partners: thank you for the trust. To the Chairman and the Board: thank you for the room to execute.

Export market updatesLow severity · 3 mentions
Constructive

Plant-Source and Natural Actives: Clean, plant-source and organic ingredients, including plant-source Vitamin D3 Biocatalysis and Green Chemistry: Enzyme-led, lower-footprint routes to high-value molecules Advanced Delivery: Technologies that enhance nutrient and active bioavailability Fermenta anticipates and responds to these trends through Innovation Chemistry, creating lasting value with science-validated product

Regulatory approvalLow severity · 11 mentions
Watch

The differentiated Chemistry business more than doubled its revenue since FY23 to 15% of the total, with Green Chemistry alone more than doubling year-on-year. Also approved by WFP Our dedicated Premix plant has also received GAIN certification 100+ scientists & engineers 75+ years of expertise 15+ key certifications 400+ global customers Management Discussion and Analysis Annual Report 2025-26 | 17 Note: Maps are not

Customer concentrationLow severity · 1 mention
Negative warning

Geographical Revenue Mix A strong global presence, with revenue contributions balanced across India, Europe, North America, and other regions The top 10 make up a moderate42%of revenue; the remaining 58% is spread across a broad base of mid-market accounts, with only 2 customers above 5% The mid-market tier has widened from 56 to 68 accounts, deepening the base Excl. Value Unlocking of revenue from the largest custom

Regulatory observationLow severity · 1 mention
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Gratitude The legacy of this Company has been carried by the Datla family for 75 years across three generations and held together at the operating level by a culture of honesty, candour, and trust. Fermenta has never had a regulatory observation against any of its manufacturing facilities in any geography we serve. That fact, although mentioned rarely, is in my view an accurate measure of what this Company represents

Institutional interestLow severity · 1 mention
Watch

Whether it also displa ys official news releases: Yes g. P resentations made to institutional investors or to analysts: Yes, the same are also uploaded on BSE website (www. bseindia.com) and the Company’s website (www.fermentabiotech.com) as per statutory requirements.

HOW TO READ THIS PAGE

Evidence, freshness and limitations

What does the TickerSutra score mean?

The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.

Which sources support this page?

Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.

Why can an item be unresolved?

Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.

Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer

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