Advanced Enzyme Technologies reports a modest first-quarter revenue increase driven by strong bioprocessing and specialised manufacturing, as it announces a Rs 697 million buyback and outlines plans for margin improvement and innovation in FY27.
Advanced Enzyme Technologies reported a modest rise in first-quarter revenue for FY27, with sales up 2% year on year to Rs 1,898 million even as the operating backdrop remained difficult. The strongest performance came from bioprocessing, where revenue grew 30%, helped by the food business, while specialised manufacturing advanced 41%, extending a run of strong momentum, according to the company’s earnings-call highlights.
The improvement in turnover was not enough to prevent pressure on profitability. EBITDA fell 10% from a year earlier and 19% from the previous quarter, with margins easing to 27% from 30%. Advanced Enzyme said higher power and fuel costs, along with a temporary change in sales mix, weighed on performance. Human healthcare revenue slipped 7% as pharmaceutical API sales softened, while the US business remained subdued amid geopolitical tensions and a gradual shift towards branded products. Management also said a Rs 100 million sales reversal hit the quarter, though it expects that revenue to come through in the next quarter.
The board also approved a buyback worth Rs 697 million at Rs 500 a share, a move that suggests confidence in the stock’s valuation. The company said the offer covers about 1.4 million shares through the open market route. It also completed the purchase of the remaining 4.28% stake in JC Biotech, making the unit wholly owned and, in management’s view, simplifying the group structure.
Looking ahead, management struck a more constructive tone. It said margins should move back towards the 30% level as operating conditions normalise and that it remains confident of delivering double-digit growth for the year. The company also outlined capital expenditure of Rs 123 crore, including about Rs 20 crore for maintenance, Rs 50 crore for research and development and the remainder for growth projects. On the product pipeline, it said novel food approval is still pending and that two patent applications in the United States have been granted, with a third still under review.
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