loader2
Login Open ICICI 3-in-1 Account
Open ICICI 3-in-1 Account

Hikal Results: Latest Quarterly Results & Analysis

Open Free Trading Account Online with ICICIDIRECT
+91
Hikal Ltd. 13 Nov 2025 17:26 PM
Result PDF

Q2FY26 Quarterly Result Announced for Hikal Ltd.

Pharmaceuticals company Hikal announced Q2FY26 results

  • Revenue: Rs 319 crore against Rs 453 crore during Q2FY25.
  • EBITDA: Rs 8 crore against Rs 75 crore during Q2FY25.
  • EBITDA Margin: 2.4% for Q2FY26.
  • PAT: Rs -35 crore against Rs 18 crore during Q2FY25.
  • EPS: Rs -2.82 for Q2FY26.

Jai Hiremath, Executive Chairman, Hikal,  said: "Across the global chemical and life sciences industry, persistent headwinds from pricing pressure, overcapacity, and regulatory complexity continue to shape the operating environment. Demand visibility is improving, and capacity utilization is rebounding across geographies. While evolving trade policies and US tariffs add volatility, our diversified base, global footprint, and long-standing partnerships provide resilience.

Consolidated revenue for Q2 stood at Rs 319 crore, with EBITDA at Rs 8 crore. For H1FY26, revenue stood at Rs 699 crore, with EBITDA at Rs 32 crore. Lower than expected sales due to deferment during the quarter led to under absorption of fixed costs.

Pharmaceutical business revenue stood at Rs 190 crore, with an EBIT margin of -9.2%. Following the US FDA audit in February 2025, we received an OAI and warning letter, leading to H1FY26 deferment of offtake across our generic and CDMO business, as customers are undertaking their own internal risk assessments before resuming supplies. The resumption of supplies is progressing well, and we expect H2 FY26 to bridge majority of the impact of H1FY26 deferments.

To address the observations comprehensively, we have launched a robust remediation program, engaged two globally recognized remediation partners, and further strengthened our internal quality organization to ensure full alignment with global regulatory expectations. Our CAPA implementation status has been submitted to the agency in a timely and detailed manner, and we remain actively engaged to expedite a positive resolution.

Our crop protection business reported revenue of Rs 129 crore, with an EBIT margin of -7.4%. While globally volumes continue to stabilise, the dynamic demand patterns and structural shifts among key innovator customers have led to a muted performance. Our Personal Care business is steadily progressing through its development and launch phase, backed by focused efforts to build a differentiated portfolio of specialty ingredients. This marks a strategic move to diversify beyond our Crop Protection base and enter a fast-growing, high-potential market. With strong momentum in new product development and multiple global RFPs underway, we are building a solid foundation for sustainable growth and long-term value creation.

In the animal health segment, we continue to make steady progress. Validated molecules are now being supplied at pre-commercial volumes which will ramp up further as we receive regulatory approvals across geographies. We have built a strong pipeline of new products which are currently in the development phase. These initiatives position us well for subsequent validations, global regulatory submissions and eventual commercialization through FY27 and beyond.

As part of our innovation and technology strategy, during the quarter we inaugurated a state-of-the-art High Potency API (HPAPI) lab, enhancing our capabilities and entering into a niche segment. We also commissioned a new kilo lab at one of our facilities, further strengthening our early-stage development and scale-up infrastructure.

Despite the challenges faced in the first half of FY26, we expect a strong recovery in Q3 and Q4, supported by improved demand visibility, higher capacity utilization, and the commercialization of new products."

Result PDF

Result PDF

Pharmaceuticals company Hikal announced Q1FY26 results

  • Revenue recorded at Rs 380 crore, compared to Rs 407 crore during Q1FY25.
  • EBITDA stood at Rs 25 crore, compared to Rs 58 crore during Q1FY25.
  • EBITDA Margin: 6.5% for Q1FY26.
  • PAT stood at Rs -23 crore, compared to Rs 5 crore during Q1FY25.
  • ikal’s long term credit rating is maintained at A by ICRA.

Jai Hiremath, Executive Chairman, Hikal, said: “The global chemical and life sciences industry continues to face mitigated headwinds, marked by a gradual pickup in demand and capacity utilization, though pricing remains under pressure in some segments. Escalating tariff uncertainties and ongoing trade realignments have added a layer of volatility to global supply chains and procurement cycles. For Q1FY26, our consolidated revenue stood at Rs 380 crore, with EBITDA at Rs 25 crore, reflecting a lower-than-forecasted start to the financial year.

Our pharmaceutical segment delivered revenue of Rs 203 crore, with an EBIT margin of -12.9%. After the US FDA audit conducted in February 2025, we received an Official Action Indicated (OAI) communication on 22nd May. This led to temporary deferment of offtake in our pharmaceutical division across both the generic and more profitable CDMO business during the quarter, as customers conducted their own risk assessment audits as part of their own internal protocol before resuming supplies typically. This resulted in a short-term quarterly impact on revenue and profitability. We expect these supplies to resume partly in Q2 and through the rest of the year and confirm our overall guidance for full financial year for the pharmaceutical division.

As part of our risk mitigation strategy on the FDA observations, we have taken several proactive measures, including onboarding a seasoned remediation partner to address regulatory observations and the engagement with the regulatory authorities to resolve the matter expeditiously. We have submitted timely comprehensive responses, outlining our CAPA plan along with our implementation progress, and remain actively engaged with the agency to ensure full alignment with regulatory expectations. I would like to reaffirm our unwavering and continued commitment to compliance and quality excellence

We did have some positive news during the quarter. GMP audits at our Bangalore API facility by two global regulatory agencies - ANVISA, Brazil and PMDA Japan were successfully concluded. This reinforces our regulatory credentials and positions us well for future growth in Japan and key LATAM markets.

Our crop protection business reported revenue of Rs 178 crore with an EBIT margin of 9.7%. The business remained largely flat on a YoY basis, reflecting persistent global overcapacity, and continued pricing pressure, particularly from lower priced Chinese competition. Despite these headwinds, our focus on product mix and cost discipline helped maintain operational efficiency. We expect gradual volume recovery and a more stable pricing environment in the second half of the year, aligned with the seasonal demand uptick.

In our animal health business, we continue to make steady progress as several molecules have completed development and validation, and additional ones are moving through the pipeline. These initiatives position us well for global regulatory submissions and eventual commercialization in FY27 and beyond.

Despite the challenging start to the year in Q1 we remain confident of delivering on our guidance for FY26. We expect a more meaningful recovery in Q3 and Q4FY26, supported by increased demand visibility, improved capacity utilization, and new product commercialization.”

Result PDF

Pharmaceuticals company Hikal announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • Board has recommended a final dividend of 40% of FV
  • Revenue recorded at Rs 552 crore
  • EBITDA stood at Rs 123 crore
  • PAT stood at Rs 50 crore
  • Hikal’s long term credit rating is maintained at A by ICRA

FY25 Financial Highlights:

  • Revenue recorded at Rs 1864 crore for FY25 compared to Rs 1,787 crore for FY24
  • PAT stood at Rs 90 crore for FY25 compared to Rs 69 crore for FY24

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal. said, “For the financial year 2025, we achieved revenue of Rs 1860 crore, and EBITDA stood at Rs 328 crore with EBITDA margin of 17.7%. In FY25, we delivered positive financial performance. Our results reflect a clear alignment to positive global trends — particularly the shift toward innovation driven outsourcing, regulatory compliance, and demand for sustainable, niche solutions. By maintaining a sharp focus on operational excellence, expanding our global presence, and investing in differentiated capabilities, we have positioned ourselves to capitalize on emerging opportunities across both businesses.

Our Board of Directors has recommended a final dividend of Rs 0.80 per share (40%). Along with an interim dividend of Rs. 0.60 per share (30%) declared in February 2025, the total dividend for FY25 stands at Rs 1.40 per share (70% of FV).

The company’s balance sheet has further strengthened. Our Net Debt/Equity has improved from 0.67 in Mar 24 to 0.59 in Mar 25 and we have improved cash flow from operations and managed capital expenditure largely from internal accruals. In Q4 FY25, at an overall company level, our revenue stood at Rs 552 crore. with an EBITDA margin of 22.4%.

In Q4 FY25, our pharmaceutical business reported revenue growth of 20% to Rs 351 crore and EBIT growth of 65% to Rs 55 crore, on QoQ basis. In the API segment, we are seeing strong traction driven by wider geographic reach and a growing customer base. In our CDMO, momentum remains robust with a healthy pipeline of projects from global innovators and emerging pharma. We see a trend of customers looking for integrated, specialized solutions which positions us well to capitalize on the rising demand for outsourced development and manufacturing.

In Q4FY25, our crop protection business reported revenue growth of 30% to Rs 201 crore on QoQ basis and EBIT growth of 160% to Rs 36 crore. While global pricing for active ingredients remains under pressure due to heightened competition, volumes are gradually improving. Across the industry, leading innovators are undergoing strategic realignments — focused on portfolio rebalancing, product innovation, and strengthening stakeholder partnerships. We view this evolving landscape as a mid to long term opportunity to align closely with global customers.

Our animal health segment continues to gain momentum, with our key innovator partnership progressing seamlessly. Our transition is on track to move from the validation and regulatory filing phase to commercialization over next few quarters—a critical milestone that underscores both execution strength and strategic focus. We continue to attract new customers in the animal health segment which will be future pillar for our growth.

This year has been marked by heightened macroeconomic uncertainty and geopolitical tensions, with trade disruptions—such as retaliatory tariffs in key markets such as the U.S. and EU— exerting pressure on global supply chains and input costs. Amid this volatility, we are actively reshaping our business by diversifying our product portfolio, forging deeper customer partnerships, and building end-to-end supply chain resilience. In the crop protection business, where margin pressures are rising, we are focusing on capacity utilization and operational efficiency whilst aggressively building the future pipeline.

Long term prospects for our company are positive. Our pharmaceutical business has a healthy pipeline of projects from innovators and emerging pharma. Our generics API business will continue to expand globally. We see some short term challenges in our crop protection business on account of the macro-economic backdrop; however, the long-term trajectory of the crop protection business remains positive.”

Result PDF

Pharmaceuticals company Hikal announced Q3FY25 results

  • Revenue: Rs 448 crore compared to Rs 448 crore during Q3FY24.
  • EBITDA: Rs 72 crore compared to Rs 65 crore during Q3FY24.
  • EBITDA margin: 16.1% for Q3FY25.
  • PAT: Rs 17 crore compared to Rs 16 crore during Q3FY24.

Jai Hiremath, Executive Chairman, Hikal, said: “In the global pharmaceutical industry, we are witnessing positive momentum led by CDMO opportunities while the crop protection industry is showing signs of stabilization. In Q3FY25, our revenue amounted to Rs 448 crore, with an EBITDA of Rs 72 crore, a 11% EBITDA growth on YoY basis. For the 9MFY25, revenue stood at Rs 1307 crore, with an EBITDA of Rs 205 crore, a growth of 3% and 19% respectively. The stable raw materials prices, focused cost improvement initiatives and intensified customer acquisitions helped us to improve our margin profile. Our focused business initiatives have resulted in increased operating cash flows of Rs 102 crore YoY on 9 months basis. Our Board of Directors has recommended an interim dividend of Rs 0.60 per share (30%).

In Q3FY25, our pharmaceutical revenue stood at Rs 293 crore with EBIT margin of 11.4%, an increase of 449 bps, on a YoY basis. Our CDMO business continues to see an increasing flow of new enquiries as a result of the China 1 strategy by global pharmaceutical companies. We are confident to deliver profitable growth based on a healthy pipeline of projects in various phases of the life cycle. Our API segment continues to gain traction driven by improved geographical penetration and an increased customer base.

In Q3FY25, our crop protection revenue stood at Rs 154 crore, with an EBIT margin of 9%. The sector has started to exhibit signs of stabilization, predominantly driven by domestic markets. We are seeing a marginal recovery in volumes, although global market prices for actives continue to remain low.

In our animal health segment, the project under our long-term agreement with an innovator customer is progressing well and we will conclude the validation over the next two quarters. Our products are undergoing registration and ultimately launching these products in global markets.

Under our strategic transformation initiative - Pinnacle, we continue to make substantial strides toward achieving sustainable growth across our businesses. We are witnessing early signs of success in development of new capabilities and differentiated technology platform as well as customers base expansion. We have successfully integrated sustainable practices into our ESG initiatives.”

Result PDF

Pharmaceuticals company Hikal announced Q2FY25 results

  • Revenue of Rs 453 crore.
  • EBITDA stood at Rs 75 crore.
  • PAT stood at Rs 18 crore.
  • Hikal’s long term credit rating is maintained at A by ICRA.

Jai Hiremath, Executive Chairman, Hikal, said: “The chemical market is gradually showing signs of improvement in 2024 with volumes showing a marginal growth over last year. In Q2FY25, our revenue amounted to Rs 453 crore, with an EBITDA of Rs 75 crore, reflecting growth on both QoQ and YoY basis. For the H1FY25, revenue stood at Rs 860 crore, with an EBITDA of Rs 133 crore, growth of 4% and 23% respectively. During H1FY25, we have reduced our working capital and improved cashflow. The stable raw materials prices, focused cost improvement initiatives along with intensified customer acquisitions helped us to improve our margins both on a QoQ and YoY basis.

In Q2FY25, our pharmaceutical segment generated revenue of Rs 294 crore and an EBIT margin of 13.7%, an increase of 28.1% and 994 bps, respectively on QoQ basis. In our CDMO business, we continue to receive enquiries from several innovator customers, and we have a robust pipeline of projects at various stages of development. In our API segment, we are experiencing a moderate surge in volume demand from existing and new clients.

In Q2FY25, our crop protection segment reported revenue of Rs 159 crore, with an EBIT margin of 5%. The Crop Protection sector is beginning to show some signs of stabilization. Domestic markets have shown a relatively better recovery trend in the recent quarters. The excess inventory situation is gradually easing, volumes are steadily recovering, however prices are still depressed in the global markets. We are cautiously optimistic that this gradual recovery will continue in the upcoming quarters.

In the Animal Health segment, as a part of long-term agreement with innovator, we have successfully completed the development and validation of six products, and we are on track to finalize the validation of additional products by the end of this year. This is an important milestone in our efforts to secure product registration and eventually launch them in global markets. We continue our efforts to target newer customers in this niche segment.

Under our strategic transformation initiative - Pinnacle, we have made significant progress in maintaining growth across our businesses. We have strengthened our efforts in our ESG initiatives, expanded our geographical reach, upgraded our technology infrastructure and acquired new customers. As we move into the next phase of our strategic plan, we are concentrating more on the front-end to seize opportunities that will contribute to building a robust pipeline across our diverse businesses.

We remain focused to deliver profitable and sustainable growth across all business segments. We expect the second half to be better than the first half with realization from costimprovement programs and higher revenues.”

Result PDF

Pharmaceuticals company Hikal announced Q1FY25 results:

  • Revenue of Rs 407 crore
  • EBITDA stood at Rs 58 crore
  • PAT stood at Rs 5 crore
  • Hikal’s long term credit rating is maintained at A by ICRA
  • Pharmaceuticals:
    • Revenue Stood at Rs 229 crore
    • Demand for Own Products is robust
    • DMF for 1 product filed during quarter
    • 13 customer audits completed successfully during the quarter
    • In the last 2 quarters have received a growing number of inquiries
    • EBIT Stood at Rs 9 crore
    • A combination of product mix and scheduled plant maintenance shutdowns leading to lower capacity utilization affected our margins
  • Crop-protection:
    • Revenue Stood at Rs 177 crore
    • Positive traction from several major global innovators in Q1FY25
    • 6 CDMO Projects in Pipeline
    • Commercialization of the new products developed in last 2-3 years resulted in revenue growth in CDMO business
    • Own products witnessed volume uptick
    • EBIT stood at Rs 21 crore
    • Favorable product mix led to an increase in margins year on year
  • Global crop protection industry facing challenges: overcapacity and price pressure from competitors, especially China.

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “The global chemical industry is experiencing a recovery in demand, with a steady improvement in consumption, production and capacity utilization. We expect prices to stabilize in the coming quarters. In Q1FY25, our revenues reached Rs 407 Cr, with an EBITDA of Rs 58 Cr representing a 5% and 16% growth respectively. This financial improvement was driven by stable raw material prices, as well as our efforts in reducing costs, optimizing processes and diversifying our product range.

In Q1FY25, our pharmaceutical business generated revenue of Rs 229 Cr, with an EBIT of 3.8%. While we saw an increase in volume demand from existing customers in the API segment, a combination of product mix and scheduled plant maintenance shutdowns leading to lower capacity utilization affected our margins. In the CDMO segment, we continue to receive multiple requests for proposals from emerging pharmaceutical companies and global innovators. Several projects are progressing through to advanced development stages. We have a healthy pipeline of projects in various stages of development.

In Q1FY25, our crop protection business generated revenue of Rs 177 Cr, with an EBIT of 11.9%. While the crop protection market is still challenging, we had a favorable product which led to an increase in margins year on year. With the global crop protection industry facing challenges such as overcapacity and price pressure from competitors, particularly from China, we expect the market to stabilize by the end of this calendar year with volumes recovery.

Our animal health business has made significant progress. We have completed the development and validation of five products and are currently on track to finish validating several others by the end of this year. This marks a crucial milestone towards obtaining product registration and eventually launching them commercially in global markets.

Under our strategic transformation initiative, Pinnacle, we have achieved significant strides in sustaining growth across our different business segments. We have focused on reducing risks in our supply chain, developing unique capabilities, acquiring new customers, and building a distinctive technology platform. As we move forward with our strategic plan, we will prioritize front-end opportunities to build and commercialize a robust pipeline across business segments.

Despite ongoing global challenges, we are confident that market conditions will improve in this financial year. Our primary objective is to achieve profitable and sustainable growth in all our business segments. We are committed to adapting our strategies to meet changing market conditions and to capitalize on the growing list of emerging opportunities.”

Result PDF

Pharmaceuticals company Hikal announced FY24 results:

Financial Highlights:

  • Revenue of Rs 1,785 crore
  • EBITDA stood at Rs 267 crore
  • PAT stood at Rs 70 crores
  • Recommended a final dividend of Rs 0.60 per share (30% of FV); Total dividend for FY24 stands at Rs 1.2 per share (60% of FV)
  • Hikal’s long term credit rating is maintained at A by ICRA

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “For the FY24, we achieved revenues of Rs 1,785 Crores as compared to Rs 2,023 Crores last year. FY24 was marred with several global macroeconomic pressures and depressed market conditions for the global chemical sector on account of inventory build up and overcapacity across the sector resulting in intense price competition from China predominantly in the Crop Protection market.

Our Board of Directors has recommended a final dividend of Rs 0.60 per share (30%). Along with an interim dividend of Rs 0.60 per share (30%) declared in February 2024, the total dividend for FY24 stands at Rs 1.20 per share (60% of FV).

For Q4FY24, our pharmaceutical business reported revenue growth of 26% to Rs 338 Cr and EBIT growth of 191% to Rs 54 Cr, on QoQ basis. In the API segment, we witnessed increased volume off-take based on higher demand from existing customers and from newer geographies. This coupled with stabilized raw material prices have supported us in maintaining our margin profile. In our CDMO segment we have received several RFP’s from both emerging pharma and global innovators, with several products progressing through the development stages. We have a healthy pipeline of projects in the early to mid-phase that is encouraging. During FY24, our API facility in Panoli, Gujarat, was audited by the US FDA, and the audit was concluded with ‘Zero’ 483 observations as a testament of our commitment to high standards of regulatory compliance.

For Q4FY24, our crop protection business reported revenue of Rs 177 Cr and EBIT of Rs 14 Cr. Despite proactive cost improvement initiatives, the global crop protection industry continues to face significant headwinds, including subdued global demand due to inventory in the channel pipeline and intense price erosion from competitors primarily China as a result of large capacity which are under-utilized. We expect the market to stabilize post the end of this financial year and recovery to begin thereafter.

In our animal health business, advancements in developing a portfolio of products under a long-term agreement with an innovator animal health company are proceeding well. During the third quarter, our new multipurpose animal health facility was commissioned at Panoli, Gujarat. Validation of several products is underway, and it is scheduled to be completed in the upcoming quarters. These validation batches mark the initial phase toward product registration and subsequent commercialization.

Under our strategic transformation initiative - Pinnacle, we have taken substantial strides toward sustaining growth across our various businesses. We have gained momentum in supply chain derisking, developing differentiated capabilities, the acquisition of new customers and the building of a distinctive technology platform. As we navigate through the next stage of our strategic plan, our focus is directed more towards the front-end capitalizing on the opportunities to build a healthy pipeline for our businesses.

Despite the current challenging global conditions, we anticipate a favorable shift in market dynamics over the mid to long term, and we remain focused in our strategy to deliver profitable, and sustainable growth across our businesses.”

Result PDF

Pharmaceuticals company Hikal announced Q3FY24 results:

Financial Highlights

  • Revenue: Revenue for the quarter was reported at Rs 448 crore, marking a sequential growth of 3% from the previous quarter.
  • EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs 65 crore. This represents a 13% increase on a quarter-over-quarter basis.
  • PAT: Profit after tax (PAT) reached Rs 16 crore for the quarter, showing a significant increase of 32% from the second quarter.
  • Interim Dividend: The company declared an interim dividend of Rs 0.60 per share, which constitutes 30% of the face value.

Business Segment Performance

  • Pharmaceutical Division: Pharmaceutical sales were reported at Rs 267 crore, contributing significantly to the quarter's revenue.
  • Crop Protection Division: Crop Protection saw revenues of Rs 180 crore for this quarter.

Operational Highlights

  • Margins: Improvements in margins were attributed to the softening of raw material prices and the implementation of business excellence initiatives.
  • Industry Destocking: The Crop Protection Industry experienced continued destocking, impacting the overall demand dynamics.
  • Global Exposure: The company reported notable traction for its newer pharmaceutical product portfolio in geographies such as Japan, Latin America, and the Middle East.
  • New Facilities: A new multipurpose Animal Health Plant at Panoli has been successfully commissioned during this quarter.

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “The global chemical industry continues to witness turbulence on the back of increased inventory levels, higher interest rates and intense price competition. We see prices bottoming out over the next few months and at the same time we can see things improving in the industry going forward.

For Q3FY24, we reported revenues of Rs 448 crore and EBITDA of Rs 65 crore. The softening of raw materials prices coupled with focused cost improvement, lean initiatives and a diversified product mix helped us to improve our margins sequentially on a QoQ basis.

Our pharmaceutical business reported revenues of Rs 267 crore and EBIT of 18 crore for Q3FY24. In the API business, we are seeing traction on the back of improved penetration across different geographies, stabilized prices and signs of recovery in market demand. On the CDMO side, we continue to maintain a strong pipeline of enquiries from several Pharma innovators, and several products are in the advanced stages of development.

For Q3FY24, our crop protection business reported revenue of Rs 180 crore and EBIT of 22 crore. The global crop protection industry continues to experience severe headwinds. Subdued global demand on the back of the destocking situation coupled with intense price competition has impacted the industry. Proactive implementation of cost improvement programs has benefited us this quarter in maintaining the margin profile. Our new multi-purpose facility at Panoli is completed and stabilization of the plant is in progress.

Result PDF

Pharmaceuticals company Hikal announced Q1FY24 results:

  • Revenue stood at Rs 388 crore
  • EBITDA stood at Rs 50 crore, a 122% increase on a YoY basis
  • PAT stood at Rs 7 crore
  • Hikal’s long-term credit rating is maintained at A by ICRA

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “FY24 has started on a challenging note due to global macro-economic pressures and high channel inventories leading to lower demand across both our businesses. The chemical industry faced difficulties due to China's opening up and depressed market conditions specifically in the Crop Protection end-use markets.

For Q1FY24, we reported revenues of Rs 388 crore and EBITDA of Rs 50 crore. During the quarter we witnessed disruptive channel inventory correction across the supply chain in both businesses. We were able to navigate through the market headwinds on the back of improved cost control measures and softening of certain raw materials prices.

On July 22, 2023, the company received communication from Gujarat Pollution Control Board (GPCB) directing the company to seize operations within 15 days from the order date citing certain technical violations. The company has responded to the queries raised by the GPCB and the closure notice has been revoked. There has been no interruption in production and operations at the site, which continues to operate as normal. We are deeply committed to upholding the principles of responsible care and sustainable business practices.

For Q1FY24, our pharmaceutical business reported revenues of Rs 225 crore. In the pharmaceutical industry, we witnessed softening of raw material prices at the same time competitive pricing environment. On the Generics side, sales have stabilized, and the inventory is expected to normalize by the end of next quarter. We expect that the off-take will return to normalcy in the second half of this financial year. We have strengthened our sales network in geographies like Latin America, the Middle East, and Japan. On the CDMO front, we continue to have a strong future pipeline and are aggressively capitalizing on new opportunities. During the quarter, our API facility in Panoli, Gujarat, was audited by the US FDA, and the audit was concluded with ‘Zero’ 483 observations as a testament to our commitment to high standards of regulatory compliance.

Our crop protection business reported revenue of Rs 163 crore for Q1FY24. The global agrochemical industry has been going through a challenging phase over the last several quarters as end customers are destocking amid high channel inventories. The market is witnessing pricing pressure given the higher base of the previous year and very aggressive price competition from the Chinese companies. We are experiencing a decline in the prices of certain products due to the cost of inventory with channel partners. However, we anticipate a recovery in demand towards the end of Q3FY24. On the margins side, softening of raw material prices and deployment of cost improvement programs are expected to have a favorable impact.

In our animal health business, the progress on developing new products as part of a long-term contract with an innovative animal health company is progressing well. Our new multipurpose plant for animal health is on track at Panoli, Gujarat and commissioning is underway. We will be validating several products in the upcoming quarters.

We are well-positioned to benefit from the significant opportunities considering the current shift in the global supply chain and the diverse capability built over three decades. We are anticipating a better second half of the year with an up-trending revenue, realization from cost improvement programs, and raw material price stabilization. We are confident that the journey of longer-term sustainable growth and profitability is still very much intact.”

Result PDF

Pharmaceuticals company Hikal announced FY23 results:

  • Revenue of Rs 545 crore; YoY growth of 9%
  • EBITDA stood at Rs 90 crore
  • PAT stood at Rs 36 crore
  • Recommended a final dividend of Rs 0.6 per share (30% of FV); Total dividend for FY23 stands at Rs 1.2 per share (60% of FV)
  • Hikal’s long-term credit rating is maintained at A by ICRA

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “For the financial year ’23, we achieved revenue of Rs 2,023 crore, which is a growth of 4% as compared to last financial year. FY23 has been a challenging year where we witnessed significant headwinds in both of our businesses. Despite the challenges, we have recorded a sequential quarter-on-quarter growth in profitability.

Our Board of Directors has recommended a final dividend of Rs 0.6 per share (30% of FV). Along with an interim dividend of Rs 0.6 per share (30% of FV) declared in February 2023, the total dividend for FY23 stands at Rs 1.2 per share (60% of FV).

We are pleased to report that during Q4FY23, despite limited top-line growth, we were able to sequentially expand operating margins with efforts put forth by our team to reduce costs and strengthen operational effectiveness.

The Crop Protection business revenue stood at Rs 236 crore in Q4 FY23 with a YoY growth of 22%. We have seen softening of key RM prices and prices are stabilizing. Our multipurpose plant at Panoli is reaching completion and commissioning is underway. The crop protection industry is currently witnessing an inventory correction across the supply chain. We expect the situation to normalize from the second half of this year.

For Q4FY23, our pharmaceutical business reported revenues of Rs 309 crore. The pharmaceutical industry is facing fierce competition, but price erosion is currently occurring at a slower pace than in the year 2022 suggesting that the worst of the erosion is behind us supported by improved raw material and logistics costs. On the CDMO side, there is a lot of inventory, and destocking is taking place. We expect the situation to normalize by the end of Q2. We have a strong future pipeline in our CDMO business and are actively pursuing new opportunities. We have increased our footprint in emerging markets and added several new customers.

I am pleased to inform you our API facility in Panoli, Gujarat, was audited by the US FDA from 8-12 May 2023, and the audit was concluded with ‘Zero’ 483 observations which highlight our high standards of regulatory compliance.

Our new multipurpose facility for animal health is on track and should be operational during H1 FY24. Development of new products as a part of a long-term contract with an innovative animal health company is going as per our plan.

One of the key factors that sets us apart is our commitment to sustainability, which is the core of our ESG Strategy. We understand the growing global concern for the environment, and we are working to make a positive impact through our operations. Our investments in technology, waste reduction initiatives, and sustainable manufacturing processes will help position us as a preferred partner for our global customers.

Project Pinnacle initiatives have already begun to yield positive results and will help us emerge stronger and more sustainable.

We foresee a slowdown in the coming couple of quarters due to the global economic downturn and increasing pricing pressure. However, we are focusing on operational excellence and capital efficiency to reduce costs and improve our margins to remain competitive in this challenging global environment. We are well positioned for sustainable growth in the medium to long term, driven by our focus on innovation, commitment to sustainability, global presence, and a strong financial foundation.”

 

 

Result PDF

Trending News

Saregama India's announced strategic partnership with, and investment in, Sanjay Leela Bhansali's Bhansali Productions

Saregama India's announced strategic partnership with, and investment in, Sanjay Leela Bhansali's Bhansali Productions

Published on 17-Dec-2025 09:01

The Competition Commission of India (CCI) has approved ITC’s acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate Ltd (ABREL).

The Competition Commission of India (CCI) has approved ITC’s acquisition of the paper and pulp manufacturing business of Aditya Birla Real Estate Ltd (ABREL)

Published on 17-Dec-2025 09:00

Zydus Lifesciences has received a USFDA acceptance for its ANDA of for copper histidinate (CUTX-101), intended to treat Menkes disease in pediatric patients.

Zydus Lifesciences has received a USFDA acceptance for its ANDA of for copper histidinate (CUTX-101), intended to treat Menkes disease in pediatric patients.

Published on 16-Dec-2025 09:05

KIMS has commenced operations at its newly established hospital located at the PES University campus in Electronic City, Bengaluru

Krishna Institute of Medical Sciences (KIMS) has commenced operations at its newly established hospital located at the PES University campus in Electronic City, Bengaluru

Published on 16-Dec-2025 09:03

Power Grid Corporation of India Ltd (POWERGRID) has been declared the successful bidder under Tariff-Based Competitive Bidding

Power Grid Corporation of India Ltd (POWERGRID) has been declared the successful bidder under Tariff-Based Competitive Bidding 

Published on 16-Dec-2025 09:01

Marico is in talks to acquire Cosmix, a startup that sells plant-based protein supplements

Marico is in talks to acquire Cosmix, a startup that sells plant-based protein supplements

Published on 16-Dec-2025 09:00

Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Download App

Download Our App

Play Store App Store
market app
✕
Application status