Fermenta Biotech Limited shares surged nearly 7.3% on BSE following the announcement that the Indian Patent Office has granted a patent for the company's proprietary plant-based Vitamin D3 production process. The stock reached Rs. 367.55 during Friday's trading session, up from its previous closing price of Rs. 345.2, with the company maintaining a market capitalization of Rs. 1,082 crores.
Patent Breakthrough Addresses Market Demand
The newly granted patent protects Fermenta's innovative technology that enables the production of Vitamin D3 entirely from plant-based sources. This represents a significant departure from traditional manufacturing methods that rely on lanolin or other animal derivatives. The breakthrough addresses the rising global demand for ethically sourced, sustainable, and plant-based nutrition products.
Managing Director Prashant Nagre commented on the achievement: "The grant of this patent is a proud milestone in our journey of innovation. Plant-based Vitamin D3 represents the future of nutrition, and this patent reinforces our ability to deliver differentiated offerings that create long-lasting impact for both our partners and society at large."
Market Position and Growth Opportunities
Fermenta Biotech, established in 1951, ranks among the world's top 3 manufacturers of Vitamin D3. The company serves more than 400 customers across over 60 countries, supplying vitamins and supplements to pharmaceutical, dietary, food, and animal nutrition industries. With manufacturing plants in Kullu, Dahej, and Tirupati, plus an R&D center in Thane, the company has built a comprehensive global presence.
The plant-based Vitamin D3 innovation unlocks new opportunities in the nutraceutical and food fortification markets, where sustainable, plant-based ingredients are increasingly sought after and command premium pricing. This market-leading vegan solution positions Fermenta at the forefront of the plant-based nutrition movement.
Strong Financial Performance
The patent announcement comes amid strong financial performance for Fermenta Biotech. The company reported significant revenue growth, with operations revenue increasing approximately 74% year-on-year from Rs. 78 crores in Q1 FY25 to Rs. 136 crores in Q1 FY26. The company also achieved a remarkable turnaround, shifting from a net loss of Rs. 6 crores in Q1 FY25 to a net profit of Rs. 22 crores in Q1 FY26.
Strategic Implications
By expanding its intellectual property portfolio with this patent, Fermenta is positioning itself as a prominent force in the fast-evolving nutraceuticals and food fortification markets. The patent reinforces the company's leadership position in the global Vitamin D3 industry while supporting its innovation pipeline and long-term growth prospects.
The technology aligns with increasing consumer demand for ethical health solutions and vegan-friendly products, establishing Fermenta as a global leader in sustainable nutrition. The stock has delivered positive returns of around 30% over the past year and gained over 4% in the last month, reflecting sustained investor confidence in the company's innovation-driven strategy.
