Hikal Q4 FY26 Revenue at INR519 Crores, Margin 20.3%

Q4 FY26 Performance:

FY26 Full Year Performance:

Revenue: INR1,713 crores
EBITDA: INR220 crores
EBITDA Margin: 12.9%
PBT: Negative INR79.3 crores (after exceptional items of INR85 crores for the year)
Exceptional items included new labor code provisions and impairment charges
Adjusted PBT from operations would have been INR7 crores excluding exceptional items

Capex incurred during FY26: INR149 crores for debottlenecking, regulatory upgrades, and expanding CDMO capacities
Debt-to-equity ratio reduced from 0.59 to 0.56 as of March 31, 2026
Growth initiatives financed through mix of internal accruals and debt

Pharmaceutical Division (Manoj Mehrotra):

FY26 Revenue: INR1,021 crores
FY26 EBIT: INR58 crores (5.7% margin)
Q4 FY26 Revenue: INR292 crores
Q4 EBIT: INR35 crores (12% margin)
Sequential operating profits up 45% in Q4
Capacity utilization at 80-85% across Panoli and Bangalore facilities
Targeting 5-6 DMF filings annually (up from 2-3 historically)
Key product launches planned in Japan and Brazil for FY27-FY28
R&D pipeline strengthening with focus on differentiated and specialty products
New investments operational: high-potency laboratory, expanded R&D center in Pune, new pilot plant at Panoli FDA-approved facility
Planned HPAPI manufacturing facility in Pune targeted for FY28
Regulatory remediation CAPAs nearing completion for U.S. FDA warning letter
Establishing office in Brazil and engaging with South Korean customers

Crop Protection Division (Sameer Hiremath):

FY26 Revenue: INR692 crores
FY26 EBIT: INR58 crores (8.4% margin)
Q4 FY26 Revenue: INR228 crores
Q4 EBIT: INR39 crores (17.1% margin)
Improvement driven by increased volume offtake and gradual normalization in global agrochemical value chain
Progressing contract manufacturing engagements, co-development R&D projects, and long-term supply agreements
Diversifying into Specialty Chemicals and Personal Care segments using existing technology and assets

Animal Health Business (Anish Swadi):

Sustained momentum with increasing global outsourcing activity
Validation completed for all products from global multinational contract
Progressing to commercial phase
Receiving inquiries and RFPs from global customers across innovator-led and niche molecule opportunities
Building differentiated value propositions with focus on supply chain security and regulatory robustness
Progressing customer approvals and registrations globally
Strategically moving toward higher complexity and differentiated customers
Expected to scale meaningfully over next several years

Raw material price increases noted for solvents (toluene, methanol, acetone, benzene) with 3-month price surge
Pass-through mechanisms in place for CDMO products with lag effect of about one quarter
Supply chain initiatives: reducing China dependence, developing non-Chinese supply partners, backward integration of key starting materials
Expect FY27 margins to sustain at improved levels due to higher operating leverage and business excellence initiatives

Transitioning from remediation phase toward sustainable technology-led growth
Improving demand visibility across both businesses expected to make FY27 stronger
Focus on improving product mix, diversifying CDMO opportunities, and expanding into higher-value segments
FDA warning letter resolution expected by end of CY2026 (18-24 month typical resolution timeline)
Historical growth targets delayed by 2-3 years due to recent challenges
Not providing specific FY27 guidance due to current uncertainty from raw material prices and geopolitical situation
Will provide better guidance after Q1 results

Raw material price increases discussed with pass-through mechanisms and lag effects
Crop protection volume improvement noted but pricing pressures remain from Chinese competition
NCE products already commercialized with new RFPs won for future launches
FDA warning letter impacting production pace and customer approvals at Bangalore facility
Panoli facility (FDA-approved) being used to derisk new filings
Animal health business on track with healthy pipeline
Management addressing concerns about historical underperformance and expressing confidence in recovery

Exceptional item of INR47 crores for impairment of multipurpose agrochemical facility at Panoli being retooled for pharmaceutical use
Debt reduction with improved debt-to-equity ratio

Conference call contained forward-looking statements based on beliefs, opinions and expectations as of May 27, 2026
Statements not guarantees of future performance and involve risks and uncertainties