Hikal reports revenue decline, net loss in Q1 FY26

Hikal Limited announced its Q1 FY26 consolidated revenue at Rs 380 crore, a decrease from Rs 407 crore in Q1 FY25. Consolidated EBITDA for the quarter stood at Rs 25 crore, down from Rs 58 crore in Q1 FY25, resulting in an EBITDA margin of 6.5% compared to 14.3% in the prior year's comparable quarter. The company reported a net loss of Rs (23) crore for Q1 FY26, a significant shift from a net profit of Rs 5 crore in Q1 FY25.

The pharmaceutical segment's revenue declined to Rs 203 crore, with an EBIT of Rs (26) crore, primarily due to a deferred offtake following a US FDA Official Action Indicated (OAI) communication in May 2025. Despite this, regulatory audits at its Bangalore API facility by ANVISA, Brazil, and PMDA, Japan, were successfully concluded. The crop protection business reported revenue of Rs 178 crore with an EBIT margin of 9.7%, remaining largely flat year-on-year amidst persistent global overcapacity and pricing pressure.

Hikal expects recovery in pharmaceutical offtake in the second half of the financial year, with continued focus on capacity utilization and pipeline development in crop protection. The company is also making progress in personal care and specialty chemicals, strengthening its balance sheet through improved operating cash flow and debt reduction.