Krebs Biochemicals and Industries LimitedQ2 FY27 Results & Financial Update

Krebs Biochemicals and Industries Limited: Q2 FY27 standalone results and company financials – revenue ₹5.79 Cr, PAT ₹-5.40 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: KREBSBIOPublished 29 Oct 2026Updated 29 Oct 2026~6 min read
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Revenue from operations₹5.79 CrReported Q2 FY27
Profit after tax₹-5.40 CrReported Q2 FY27
Sequential change-117.3%Quarter-on-quarter

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Quarterly Results AnalysisExplore Krebs Biochemicals and Industries Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

Krebs Biochemicals and Industries Limited generated revenue from operations of INR 5.79 crore for the second quarter ended September 30, 2026, marking a sequential decrease of 17.09% compared to INR 6.98 crore in the preceding quarter ended June 30, 2026.

02

Total income for Q2 FY27 stood at INR 5.83 crore, supported by INR 0.04 crore in other income, reflecting a 18.38% contraction sequentially from INR 7.14 crore reported in Q1 FY27.

03

The company posted a net loss (PAT) of INR 5.40 crore for the quarter, widening significantly from a net loss of INR 2.48 crore in the previous quarter. This bottom-line deterioration was driven by lower top-line realization, reduced other income, and persistent fixed overhead burdens.

04

Basic and diluted earnings per share (EPS) for the quarter stood at a negative INR 2.50, compared to a negative INR 1.15 in the preceding quarter.

05

Operations at the company's Visakhapatnam manufacturing unit remained shuttered throughout the quarter under a closure order issued by the Andhra Pradesh Pollution Control Board on February 7, 2025, severely curtailing regular production capacity.

06

During the quarter, the Board of Directors advanced a planned amalgamation scheme with Ipca Laboratories Limited, following initial approval at the board meeting held on June 26, 2026, with an appointed date of April 1, 2026, subject to statutory and regulatory consents.

01 · Business model

What does Krebs Biochemicals and Industries do?

Krebs Biochemicals and Industries Limited manufactures biochemicals, active pharmaceutical ingredients (APIs), and intermediates through fermentation and chemical synthesis processes. The company operates its principal manufacturing infrastructure out of Andhra Pradesh.

The operational model relies heavily on active manufacturing output from its core plant facilities to generate commercial scale revenue. Sales are primarily derived from pharmaceutical and biochemical product supply lines to domestic and international clients.

The company's financial results continue to be shaped by regulatory constraints affecting its primary manufacturing site, alongside ongoing corporate restructuring initiatives.

02 · Historical context

What shaped the business before this quarter

February 2025 Closure Order

The Andhra Pradesh Pollution Control Board issued a closure order against the company's Vizag manufacturing unit on February 7, 2025, halting active plant operations.

June 2026 Amalgamation Approval

The Board of Directors approved the amalgamation of Krebs Biochemicals & Industries Limited with Ipca Laboratories Limited at a meeting held on June 26, 2026, with an appointed date of April 1, 2026.

03 · Financial snapshot

Current quarter vs the available comparable

MetricQ2 FY27Previous quarter
Revenue from operations₹5.79 Cr₹6.98 Cr
Total income₹5.83 Cr₹7.14 Cr
Profit before tax₹-5.40 Cr₹-2.48 Cr
Profit after tax₹-5.40 Cr₹-2.48 Cr
EPS₹-2.50₹-1.15

Financial interpretation

What the reported numbers mean

Profit conversion

Profit after tax represented -93.2% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.

Pre-tax earnings

Profit before tax was equivalent to -93.2% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.

Operating revenue versus total income

Total income exceeded operating revenue by ₹0.04 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.

Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.

04 · Why it moved

Why the quarter looked the way it did

What drove revenue

Lower Operational Volume

Revenue from operations contracted sequentially to INR 5.79 crore in Q2 FY27 from INR 6.98 crore in Q1 FY27, reflecting constrained product availability due to the continued shutdown of the primary Vizag manufacturing facility.

What drove margins

Fixed Cost Pressures

Despite reduced operational scale, employee benefit expenses remained high at INR 2.83 crore, while finance costs stood at INR 1.90 crore and depreciation and amortization charges were INR 1.61 crore, exerting severe pressure on profitability.

Other Expenses

Other expenses increased sequentially to INR 3.59 crore in Q2 FY27 compared to INR 2.97 crore in Q1 FY27, contributing to the wider net loss.

05 · Segments, products & geography

Which parts of the business are doing the work

Segments and products

Single Operating Segment

The company operates in a single primary business segment, and consequently, no separate segment-wise results have been disclosed.

06 · Capacity, projects & execution

What is being built, commissioned or delivered

Capacity, production and utilisation

Vizag Plant Status

The manufacturing operations at the Vizag plant continued to remain closed pursuant to the pollution control board order dated February 7, 2025. Management reported being in constant dialogue with the Pollution Control Board for revocation of the closure order.

07 · Strategy & new businesses

How the company is trying to change its growth mix

Proposed Amalgamation with Ipca Laboratories

The Board of Directors approved the scheme of amalgamation of Krebs Biochemicals & Industries Limited with Ipca Laboratories Limited, subject to necessary statutory and regulatory approvals, with an appointed date of April 1, 2026.

08 · Reported developments

What changed operationally

Unmodified Auditor Review

The statutory auditors issued an unmodified review report on the standalone financial results for the quarter and half year ended September 30, 2026.

09 · Pressure points & risks

What is not going smoothly

Continuing Plant Shutdown

The ongoing closure of the Vizag manufacturing facility under the Andhra Pradesh Pollution Control Board directive continues to restrict production and commercial operations.

Net Loss Position

The company reported a net loss of INR 5.40 crore for Q2 FY27, reflecting ongoing financial strain amid suspended core manufacturing activities.

10 · Cash flow & balance sheet

Profit is one thing. Cash and funding tell another part of the story.

Operating cash flow₹3.00 CrH1 FY27
Capital expenditure₹-0.89 CrH1 FY27
Half-Year Cash Flow from Operations

For the half year ended September 30, 2026, net cash generated from operating activities was INR 2.99 crore, supported by working capital adjustments including a decrease in inventories of INR 1.48 crore and an increase in other financial liabilities of INR 3.69 crore.

Capital allocation & funding

Borrowings Breakdown

As at September 30, 2026, non-current borrowings stood at INR 154.50 crore (down from INR 163.55 crore as at March 31, 2026), while current borrowings stood at INR 72.49 crore (compared to INR 61.29 crore as at March 31, 2026).

11 · Beyond the numbers

What changed beyond the numbers

Reported update

Absence of Subsidiaries

As at September 30, 2026, the company did not have any subsidiary, associate, or joint venture companies.

12 · Previous-quarter changes

What changed since the previous quarter

Sequential Revenue and Profit Shift

Revenue from operations declined by 17.09% sequentially from INR 6.98 crore in Q1 FY27 to INR 5.79 crore in Q2 FY27, while the net loss widened from INR 2.48 crore to INR 5.40 crore.

13 · Key Q&A

The quarter, answered directly

What does Krebs Biochemicals and Industries do?

Krebs Biochemicals and Industries Limited manufactures biochemicals, active pharmaceutical ingredients (APIs), and intermediates through fermentation and chemical synthesis processes. The company operates its principal manufacturing infrastructure out of Andhra Pradesh.

What is the clearest takeaway from Q2 FY27?

Krebs Biochemicals and Industries Limited generated revenue from operations of INR 5.79 crore for the second quarter ended September 30, 2026, marking a sequential decrease of 17.09% compared to INR 6.98 crore in the preceding quarter ended June 30, 2026.

What drove revenue or demand?

Revenue from operations contracted sequentially to INR 5.79 crore in Q2 FY27 from INR 6.98 crore in Q1 FY27, reflecting constrained product availability due to the continued shutdown of the primary Vizag manufacturing facility.

What mattered most for margins or profitability?

Despite reduced operational scale, employee benefit expenses remained high at INR 2.83 crore, while finance costs stood at INR 1.90 crore and depreciation and amortization charges were INR 1.61 crore, exerting severe pressure on profitability.

What changed operationally beyond the headline numbers?

The manufacturing operations at the Vizag plant continued to remain closed pursuant to the pollution control board order dated February 7, 2025. Management reported being in constant dialogue with the Pollution Control Board for revocation of the closure order.

What are the main pressure points disclosed for the quarter?

The ongoing closure of the Vizag manufacturing facility under the Andhra Pradesh Pollution Control Board directive continues to restrict production and commercial operations.

14 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

Starting point

Build your own next-quarter scenario

Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.

Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.

Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%

The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.

15 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Pollution Control Board Dialogue: Progress on discussions with the Andhra Pradesh Pollution Control Board regarding the revocation of the closure order for the Vizag manufacturing unit.

  2. 02

    Ipca Laboratories Amalgamation: Regulatory and statutory approvals concerning the proposed scheme of amalgamation with Ipca Laboratories Limited.

Learn the metrics

Need the concepts first?

Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.

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