Zim Laboratories Ltd

Zim Laboratories Ltd — Closure of Trading Window from 01 October 2026; The Trading Window shall open post 48 hours from the declaration of financial results of the Company for the quarter ended 30th September, 2026.

Target entity

• Target: ZIM Laboratories SpA, incorporated in Chile, pharmaceutical industry.
• Purpose: expansion and development of pharmaceutical business in LATAM.

Financing and ownership

• Cash consideration; cost of subscription CLP 14.1 million.
• 100% ownership held by ZIM Laboratories Limited (holding company).
• Shares subscribed: 14,100 shares at CLP 1,000 each.

Structure and rationale

• ZIM Laboratories SpA is a wholly owned subsidiary by ZIM Laboratories Limited.
• Formation aims to expand LATAM pharmaceutical presence.

Timeline and approvals

• Date of incorporation: 9 September 2026; filing date: 18 September 2026.
• Regulatory approvals: not applicable.

Transaction details

• Target: ZIM Scientific Office LLC (ZIM SO), a step-down subsidiary of ZIM Laboratories Limited.
• Industry/sector and country: not disclosed.
• Related party transaction: Yes; acquirer is ZIM Laboratories Limited FZE, wholly owned.
• Ownership post-investment: ZIM FZE retains 100% of ZIM SO.
• Form of consideration: investment in share capital; amount not disclosed.
• Timeline: investment completed.
• Regulatory approvals: not disclosed.
• Background: target details not disclosed in filing.
• Previous investments: AED 4,66,000 and AED 4,50,000 to ZIM SO.

Financial Performance

• Total operating income: INR 942 million, up 31.2% YoY.
• EBITDA: INR 34 million; margin 3.7%.
• PAT: negative INR 40 million vs negative INR 19 million prior year.
• Exports ~84% of total income; NIP/OTF ~18%.
• Gross margin ~58% in Q1; Q1 one-time costs: TGA audit 0.30 crore; MIDC 1.9 crore.
• Debt: INR 145.2 crore; R&D spend: INR 8.2 crore.

EU-GMP Progress

• EU-GMP inspection completed; final report awaited; CAPA plan prepared.
• Draft observations shared; no critical observations; CAPA to be submitted after final report.
• Regulatory remediation investments; positioned for growth in regulated markets.

Outlook and Guidance

• FY27 is a transition year; EU-GMP progress crucial.
• FY28 growth target: 30-40% if EU-GMP enables supplies.
• Without EU-GMP, FY27 growth 10-15%; margins near last year.
• Capex largely complete; INR 15-20 crore for enzyme and Nutra upgrades.
• MA for 8-10 products post-EU-GMP; Q4 revenue possible.

Q&A Highlights

• Q1 momentum described as among best in years; EU-GMP timing remains key.
• Q1 costs include AUD TGA and MIDC charges; not recurring.
• Debtors days around 100; target reduction to 80 days.
• Australia TGA CAPA submitted; certificate due in coming months; first order underway.
• Two quarters after CAPA, MA approvals; potential Q4 revenue.

Risks and Watchpoints

• EU-GMP delay risk; beyond 3-4 months may require re-filing.
• Middle East disruption caused Q1 impact; currently normalizing.
• Regulatory MA timelines and CAPA acceptance remain key watchpoints.

Resolutions and outcomes

• Purpose of postal ballot: approve remuneration revisions for two directors.
• Resolution 1 (Special): Approve remuneration revision for Dr. Anwar Daud, Managing Director.
• Resolution 2 (Special): Approve remuneration revision for Mr. Zulfiquar Kama, Whole-Time Director.
• Outcome for Resolution 1: Approved with 99.985% in favour, 0.015% against.
• Outcome for Resolution 2: Approved with 99.985% in favour, 0.015% against.
• Promoter group had interest in the resolutions.

Meeting Details

• Audio recording of Q1 FY27 Earnings Conference Call is available on the company website.

Consolidated results

• Consolidated revenue from operations: 9,417.85 lakh; YoY growth approx 31%.
• Total consolidated income: 9,517.08 lakh.
• Consolidated PBT: (557.30) lakh.
• Consolidated PAT: (401.70) lakh; net loss.
• Consolidated EPS (basic): Rs (0.75).
• Total consolidated comprehensive income: (364.75) lakh.
• Limited review by Deloitte Haskins & Sells LLP; no audit opinion.

Standalone results

• Standalone revenue from operations: 9,304.83 lakh.
• Standalone total income: 9,403.38 lakh.
• Standalone PBT: (542.22) lakh.
• Standalone PAT: (387.55) lakh.
• Standalone EPS (basic): Rs (0.72).
• Standalone total comprehensive income: (390.00) lakh.
• Limited review by Deloitte Haskins & Sells LLP; no audit opinion.

Business note

• Group is pharma; single segment for consolidated and standalone results.

Meeting Details

• Date and time: 7 August 2026, 12:00 p.m. IST.
• Type and mode: Group virtual earnings call.
• Organizer: Hosted by Go India Advisors.
• Company participants: Director (Finance), CFO, Investor Relations.
• Purpose: Discuss Q1FY27 earnings/results with investors.
• Registration: Pre-register to join with Diamond Pass.

Meeting Details

• Board meeting scheduled for 6 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended 30 June 2026.

Other Notes

• Trading window closed from 01 July 2026 to 08 August 2026 (inclusive).