Q1 FY27 Consolidated Financial Performance

  • Revenue: ₹403 crores, representing a 6.2% year-on-year (YoY) growth
  • EBITDA: ₹37 crores, a 47.4% YoY increase
  • EBITDA Margin: 9.2%, an expansion of 260 basis points (bps) from 6.6% in Q1 FY26
  • Other Income: ₹2 crores
  • Depreciation: ₹43 crores
  • Interest: ₹15 crores
  • PBT before exceptional items: Loss of ₹(19) crores
  • Exceptional items: Income of ₹(9) crores, relating to reversal of excess provision made during Q3FY26 for implementation of new labour code
  • PBT after exceptional items: Loss of ₹(10) crores
  • Tax: Credit of ₹(3) crores
  • Net Profit: Loss of ₹(7) crores

Segment-Wise Performance Summary

Pharmaceuticals Business (58% of Revenue)

  • Revenue: ₹233 crores in Q1FY27, a 15.2% YoY growth from ₹203 crores in Q1FY26
  • EBIT: ₹8 crores, a significant improvement from a loss of ₹(26) crores in Q1FY26
  • Revenue Split: 59% from CDMO and 41% from Own Products
  • Key Developments: Portfolio expansion across differentiated APIs and specialty therapies including Oncology, CNS, Gastroenterology and Anti-diabetics. Strengthened presence across regulated and emerging markets with increasing focus on Japan, LATAM, MENA. DMF filing trajectory increased to 5-6 filings annually versus 2-3 historically. Commissioned a new cGMP pilot plant in Pune. Continued engagement with US FDA, with reinspection expected during the current FY.

Crop Protection Business (42% of Revenue)

  • Revenue: ₹170 crores in Q1FY27, a decline from ₹178 crores in Q1FY26
  • EBIT: Loss of ₹(6) crores, compared to profit of ₹17 crores in Q1FY26
  • Revenue Split: 54% from CDMO and 46% from Own Products
  • Key Developments: Own Products delivered sequential growth driven by higher domestic volumes. CDMO demand remained subdued due to ongoing inventory adjustments at customer end. Geopolitical developments led to significant rise in all input costs including raw materials, resulting in margin pressure. 4 CDMO molecules in development. Personal Care business commercialized in July 2026.

FY26 Annual Performance Summary (Consolidated)

  • Revenue: ₹1,713 crores, an 8% decline from ₹1,860 crores in FY25
  • EBITDA: ₹220 crores, a 33% decline from ₹328 crores in FY25
  • EBITDA Margin: 12.9%, down 479 bps from 17.7% in FY25
  • PAT: Loss of ₹49 crores (including exceptional items), compared to profit of ₹91 crores in FY25
  • Exceptional items: ₹85 crores, comprising effect of new labour code (₹38 crores) and impairment of manufacturing asset at Panoli (₹47 crores)
  • PAT without exceptional items: ₹5 crores

FY26 Segment Performance

Pharmaceuticals:

  • Revenue: ₹1,021 crores (60% of total)
  • EBIT: ₹33 crores
  • Revenue Split: 52% CDMO, 48% Own Products

Crop Protection:

  • Revenue: ₹692 crores (40% of total)
  • EBIT: ₹51 crores
  • Revenue Split: 65% CDMO, 35% Own Products

Balance Sheet Position (as of March 31, 2026)

  • Total Assets: ₹2,365 crores (compared to ₹2,529 crores in Mar-25)
  • Non-Current Assets: ₹1,481 crores, primarily Property, Plant and Equipment (₹1,264 crores) and Capital work in progress (₹95 crores)
  • Current Assets: ₹884 crores, comprising Inventories (₹358 crores), Trade Receivables (₹442 crores), and Cash & Cash Equivalents (₹10 crores)
  • Total Equity: ₹1,199 crores (Share Capital: ₹25 crores, Other Equity: ₹1,174 crores)
  • Non-Current Liabilities: ₹486 crores, primarily Borrowings (₹373 crores)
  • Current Liabilities: ₹680 crores, primarily Borrowings (₹308 crores) and Trade Payables (₹266 crores)

Cash Flow Statement (FY26)

  • Cash from operating activities: ₹302 crores
  • Cash used in investing activities: ₹(145) crores
  • Cash used in financing activities: ₹(160) crores
  • Net decrease in cash: ₹(3) crores
  • Cash and cash equivalents at year-end: ₹10 crores

Operational and Strategic Updates

  • US FDA Status: Remediation plan in penultimate stage. Significant time and resources invested to ensure highest level of compliance. 100+ customer audits passed at Bangalore facility.
  • Sustainability Achievement: Received Gold rating from EcoVadis (84/100 score), placing Hikal in top 5% of companies globally assessed.
  • Manufacturing Capabilities: Six manufacturing & R&D sites in India with total reactor volume of approximately 3,461 m³ across Pharmaceuticals and Crop Protection businesses.
  • New Facility: Dedicated Panoli manufacturing facility for Personal Care business commissioned, with products expected to contribute revenues in FY27.
  • Pune cGMP Pilot Plant: Commissioned with 20L-2,000L reactor range to support process development, scale-up, technology transfer and clinical manufacturing.

Forward-Looking Commentary

Management expects a sequential improvement in performance going forward, with business momentum strengthening progressively through FY27. This is supported by improving demand visibility, expanding CDMO opportunities, and continued focus on operational excellence. The company remains confident in a stepwise recovery of revenues and profitability during the year.