Hikal Delivers Strong Q3 FY26 Recovery; Revenue up 10% YoY to ₹494 crore, EBITDA up 15%; Board Approves 10% Interim Dividend
Key Highlights: • Revenue at ₹494 crore, up 10% YoY • EBITDA at ₹83 crore, up 15% YoY • EBITDA margin improved 70 bps YoY to 16.8% • Improved Debt–Equity ratio at 0.58x
Hikal Limited, a preferred long-term partner to leading global life sciences companies, announced its unaudited financial results for the quarter and nine months ended December 31, 2025, reporting a decisive return to operational recovery in Q3 FY26.
Consolidated revenue for Q3 FY26 stood at ₹494 crore, registering a 10% year-on-year growth, while EBITDA increased 15% year-on-year to ₹83 crore. EBITDA margin expanded by 70 basis points on a YoY basis to 16.8%. Profit before tax before exceptional items rose 22% year-on-year to ₹29 crore. The Board approved an interim dividend of 10% of face value.
The quarter reflects a clear rebound in performance, offsetting the pharmaceutical sales deferrals seen in H1 FY26 due to regulatory developments. Supply resumptions progressed as planned during Q3, driving sequential improvement in volumes and capacity utilisation returning to optimal levels. Remediation measures relating to the US FDA audit have been substantially implemented, positioning the company for sustainable recovery.
For the nine months ended December 31, 2025, consolidated revenue stood at ₹1,193 crore with EBITDA of ₹115 crore, reflecting improving operating momentum and stabilisation across key segments despite challenges faced in the first half of the financial year.
The Pharmaceutical segment reported revenue of ₹337 crore in Q3 FY26 with an EBIT margin of 12.3%. Supplies have resumed in a phased manner and Q4 is expected to bridge the majority of H1 deferments. The pipeline remains robust, with niche molecules advancing across Oncology, Anti-Migraine, new-age Anti-Ulcerative and Urology segments. Geographic expansion into Japan, Latin America and Korea is strengthening diversification. Strategic investments including a state-of-the-art High Potency Lab and a new pilot plant are now operational, enhancing Hikal’s differentiated CDMO platform and positioning in high-entry-barrier segments.
The Crop Protection segment delivered revenue of ₹157 crore in Q3 FY26 with an EBIT margin of 3%. The business registered growth over previous quarters and the corresponding period last year. While pricing pressures persist due to global overcapacity and China-linked dynamics, end-customer demand is showing improvement, translating into higher enquiries and order inflows. Operational efficiency initiatives and stable raw material prices supported margin resilience.
The Animal Health business has transitioned into commercial volumes, supported by a strong development pipeline. The Personal Care and Specialty Chemicals business has successfully completed initial production batches and is expected to commercialise 3–4 products in FY27, in line with the company’s broader diversification strategy.
Commenting on the results, Sameer Hiremath, Vice Chairman, Hikal Ltd., said,
“Q3 FY26 marks a return to positive operational performance for our company. Following the regulatory cycle triggered in early 2025, we have transitioned from remediation to recovery and are now positioned for sustainable, higher-quality growth. Our diversification initiatives continue to gain traction and as we enter Q4, visibility continues to strengthen and the foundation for a stronger FY27 is firmly in place.”
With strengthened quality systems, operational stabilisation and improving demand visibility, the company expects a strong finish to FY26 and enhanced momentum heading into FY27.
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