Hikal Q1 FY27 Revenue Rs 403 Crore, EBITDA Margin 9.2%

Revenue: ₹403 crore
EBITDA: ₹37 crore
EBITDA Margin: 9.2%
PAT: ₹(-7) crore
Exceptional Item: ₹9 crore (reversal of excess provision made in Q4 FY26 for new Labor Codes)
Quarterly CAPEX: ₹45 crore
Net Debt (as of June 30, 2026): ₹685 crore (reduced from ₹815 crore in FY24)
Debt-to-Equity Ratio: 0.53 (vs. 0.56 in March 2026 quarter)

Pharmaceutical Business (Head: Manoj Mehrotra)

Revenue: ₹233 crore
EBIT: ₹8 crore
EBIT Margin: 3.2%
Capacity Utilization: 55%-60% at Panoli and Bangalore facilities (reflecting planned shutdown for U.S. FDA remediation)
Strategic Focus: Niche higher-value products in gastroenterology, oncology, CNS, and specialized therapies; expanding into Japan and Latin America.
CDMO Pipeline: 8-9 molecules at various development stages; strengthening engagement in North America, Europe, and Japan.
DMF Filing Target: Increasing from 2-3 to 5-6 filings annually with new pilot plant commissioning.
Regulatory Update: Continuous dialogue with U.S. FDA since warning letter in August 2025; remediation on track; expected re-inspection towards end-FY27. 86 customer audits conducted in last 12 months with zero lost contracts.

Crop Protection Business (Head: Ravi Khadabadi)

Revenue: ₹170 crore
EBIT: ₹(-6) crore
Industry Context: Gradual recovery with volume growth but uneven across geographies; global channel inventories normalized after 2-3 years of destocking.
Challenges: Pricing pressure due to excess supply from China; margin impact from elevated raw material and energy costs (₹7-8 crore impact in Q1 due to geopolitical tensions).
Operational Focus: Cost discipline, selective capacity debottlenecking, onboarding new customers, establishing in-house liquid formulation capabilities.
Outlook: Q2 expected better than Q1 supported by Indian Kharif season; Q3 improvement expected from Rabi season and Latin American demand.

Animal Health Business (Head: Anish Swadi)

Strong Q1 Performance: Supported by strong demand from existing customers and approval of validation batches for new projects.
Scale: Achieved annual turnover of over ₹100 crore in FY26.
Growth Target: ₹400 crore revenue by FY30.
Margin Profile: Expected to exceed 20% EBITDA at operational leverage.
Pipeline: Several NCEs and advanced intermediates progressing through development; commercial production underway for some molecules; completed US EPA and Canada PMRA regulatory filings for one molecule.
Customer Base: Global innovators across Europe, U.S., Japan, and ROW.

Personal Care Business

Recent Commissioning: Dedicated multi-purpose manufacturing line at Panoli with commercial production commenced.
Revenue Expectation: By end of FY27.
Growth Target: Expected to cross ₹200 crore in revenue in next three years.
Margin Profile: Over 20% EBITDA, similar to Pharma business.
Strategy: Diversification into adjacent high-growth segments leveraging existing capabilities.

CAPEX History (Last 4 years): ~₹900 crore invested
Maintenance CAPEX: ₹300 crore (~₹75 crore/year across 6 sites)
Growth CAPEX: ₹600 crore
₹300 crore: Agrochemical manufacturing plant (part impaired in Q4 FY26, now being retooled for Pharma/Animal Health)
₹150 crore: New dedicated Animal Health manufacturing site (validations completed, revenue started)
₹100 crore: Multipurpose manufacturing facility in Bangalore (generating revenue)
Balance: R&D capabilities (high-potency anti-cancer lab in Pune, cGMP pilot plants)
Net Debt Reduction: From ₹815 crore in FY24 to ₹685 crore at FY26-end.

Q2 FY27 Outlook: Substantial YoY growth in revenues and EBITDA expected.
FY27 Full-Year Guidance:
Revenue Growth: 14% to 16%
EBITDA Growth: 25% to 30%
Segment Growth: Strong growth in Pharma, marginal growth in Crop Protection
Beyond FY27: Expected 15-16% CAGR to continue; FY28 anticipated to be substantially better with remediation costs eliminated and pending approvals accelerating growth.
FDA Remediation Impact: Current costs depressing EBITDA; meaningful margin improvement expected from FY28 onwards post-clearance.