Hikal FY26 Net Loss ₹487M, Declares 20% Final Dividend

Summary of Key Information:

Reporting Period (Quarter/Year): Quarter and Financial Year ended March 31, 2026

Nature of Filing / Announcement: Outcome of Board Meeting under Regulation 30 of SEBI LODR Regulations, 2015, comprising Audited Financial Results (Standalone and Consolidated), Dividend Recommendation, and Director Appointment.

Date of Board Meeting / Approval: May 27, 2026

Audit Opinion: Unmodified Opinion

Auditor’s Comment: The auditor included an 'Emphasis of Matter' regarding an ongoing investigation and Supreme Court case related to alleged non-compliance with environmental laws. The company has deposited ₹50 million with the Supreme Court (against a potential compensation of ₹174.5 million) and, based on legal advice, believes it has a good case. No further provision was deemed necessary.

Key Financial Highlights [Unit: ₹ Million]

Standalone Results:

| Revenue from Operations | 5,194 | 4,943 | 5,524 | 17,126 | 18,598 |

| Total Income | 5,260 | 4,971 | 5,529 | 17,249 | 18,648 |

| Net Profit / (Loss) | 146 | (59) | 503 | (487) | 909 |

| EPS (Basic) [₹] | 1.18 | (0.48) | 4.08 | (3.95) | 7.37 |

| Other Equity | - | - | - | 11,743 | 12,375 |

| Cash and Cash Equivalents | - | - | - | 96 | 129 |

| Debt (Short-term + Long-term) | - | - | - | 6,806 (3,731+3,075) | 7,621 (3,672+3,949) |

YoY Comparison (FY26 vs FY25): Revenue from operations decreased by 7.9%. Net Profit turned into a Net Loss of ₹487 million from a profit of ₹909 million in the previous year.

Consolidated Results:

| Revenue from Operations | 5,194 | 4,943 | 5,524 | 17,126 | 18,598 |

| Total Income | 5,260 | 4,971 | 5,529 | 17,249 | 18,648 |

| Net Profit / (Loss) (Attributable to Parent) | 144 | (59) | 502 | (488) | 908 |

| EPS (Basic) [₹] | 1.17 | (0.48) | 4.07 | (3.96) | 7.36 |

| Other Equity | - | - | - | 11,741 | 12,376 |

Subsidiaries Included in Consolidation: Acoris Research Limited and Hikal LLC, USA. The results of Hikal LLC, USA are unaudited but are considered immaterial to the Group.

Segment-wise Performance [₹ Million]:

Standalone Segment Revenue (Q4 FY26):

Pharmaceuticals: ₹2,916
Crop Protection: ₹2,278
Total Revenue: ₹5,194

Standalone Segment Profit (Q4 FY26) before allocation of unallocable costs:

Pharmaceuticals: ₹349
Crop Protection: ₹389
Total Segment Profit: ₹738

Segment Performance Note: The Crop Protection segment recorded an exceptional impairment charge of ₹471 million in Q4 FY26. The Pharma segment's annual sales were impacted by a USFDA warning letter for the Jigani facility issued in August 2025.

Corporate Actions:

Dividend: The Board recommended a final dividend of 20% (₹0.40 per equity share of face value ₹2 each) for FY26. This is subject to shareholder approval at the ensuing AGM. Together with the interim dividend of 10% (₹0.20 per share) paid in March 2026, the total dividend for FY26 aggregates to 30% (₹0.60 per share). This is lower than the total dividend of 70% (₹1.40 per share) for FY25.
No other corporate actions such as buybacks, splits, or bonus issues were announced.

Other Significant Information:

Exceptional Items: The results for FY26 include significant exceptional items:
Q4 FY26: An impairment charge of ₹471 million was recorded on assets in a manufacturing plant being repurposed.
Q3 & FY26: An expense of ₹380 million was recorded due to the implementation of new Labour Codes, comprising ₹115M (gratuity), ₹87M (compensated absences), and ₹178M (policy change to remove gratuity ceiling).
Taxation: Current tax for the period includes a reversal of a provision of ₹107 million following a CIT(Appeals) order received in April 2026.
Balance Sheet (Standalone): Total assets stood at ₹23,654 million as of March 31, 2026 (vs. ₹25,291 million in FY25). Borrowings (short + long term) were ₹6,806 million (vs. ₹7,621 million in FY25).
Cash Flow (Standalone): Net cash from operating activities was ₹3,021 million for FY26. There was a net decrease in cash and cash equivalents of ₹33 million, ending at ₹96 million.