IDT’s Q1FY26 Revenue Up 18%, EBITDA Loss Narrows Amid Strategic Realignment

Strategic Reset for Sustainable Growth

IDT Australia Limited (ASX, IDT), a Boronia-based pharmaceutical manufacturer, has unveiled a strategic realignment aimed at driving sustainable profitability and operational focus in FY26. Moving away from a revenue growth-at-all-costs approach, the company is prioritising higher-return core activities and streamlining underperforming segments. This pivot is designed to capitalise on IDT’s strengths and market opportunities while improving margins and shareholder value.

The company expects to achieve annualised cost savings of around $1 million through this realignment, which includes redeployment of resources and reductions in operational headcount in less profitable areas. This disciplined approach reflects a broader industry trend towards efficiency and sustainable growth amid evolving market dynamics.

Revenue Growth Driven by Core Verticals

In the first quarter of FY26, IDT reported unaudited revenue of $4.3 million from its three main verticals, Active Pharmaceutical Ingredients (API), Specialty Orals, and Advanced Therapies, marking an 18.2% increase compared to the previous corresponding period and a 7.6% rise quarter-on-quarter. However, total revenue including disbursements declined 10.1% year-on-year to $4.6 million, reflecting lower pass-through costs after a period of elevated client start-up expenses.

The revenue composition highlights API manufacturing as the largest contributor at 45.7%, followed by Specialty Orals at 29.2%, and Advanced Therapies at 25.1%. Despite an EBITDA loss of $0.3 million in Q1FY26, the company’s pipeline remains robust, underpinned by $3.4 million in new contracts signed during the quarter.

Focused Growth in Radiopharmaceuticals and Advanced Therapies

IDT is shifting its Specialty Orals vertical towards radiopharmaceuticals, a segment experiencing rising demand for both therapeutic and diagnostic applications. Recent contract wins and a strong pipeline of enquiries position this area as a key growth driver. Meanwhile, the company continues to support clinical-stage innovations in medicinal and psychedelic products as a secondary focus.

In Advanced Therapies, IDT maintains its leadership in mRNA manufacturing, having produced 17 unique mRNA constructs to date. While antibody-drug conjugate (ADC) development presents challenges, the company is reassessing its strategy to prioritise high-growth mRNA opportunities aligned with global demand trends.

Outlook and Collaboration Update

Looking ahead, IDT’s Executive Chair Mark Simari emphasised the company’s commitment to transforming into a more focused and profitable entity. The strategic realignment, combined with a strong contract pipeline and operational efficiencies, sets the stage for a more sustainable future. IDT plans to provide further strategic and outlook details at its upcoming annual general meeting.

Regarding its collaboration with Gelteq Limited, announced in July 2025, progress towards a formal agreement remains delayed due to external factors. Both parties continue to engage, with updates expected if a binding deal is reached.