Hikal's Q2 revenue dips on regulatory delays, expects H2 recovery

Hikal Limited announced its Q2 FY26 financial results, reporting consolidated revenue of INR 319 crores and an EBITDA of INR 8 crores, reflecting a 2.6% margin. The pharmaceutical business revenue stood at INR 190 crores with a negative EBIT margin of 9.2%. This decline was primarily attributed to a short-term deferral of sales due to the Bangalore facility receiving an OAI status in May, followed by a warning letter in August 2025. Approximately INR 80 crores in sales were delayed and subsequently booked in October 2025.

For the first half of FY26, consolidated revenue reached INR 699 crores, with an EBITDA of INR 32 crores and a margin of 4.6%. Finance costs for Q2 FY26 were INR 15 crores, a reduction of 13% year-on-year. The company maintains its full-year CAPEX guidance of INR 200 crores, with INR 65 crores spent in H1 FY26.

Despite the setbacks, Hikal expects a strong recovery in Q3 and Q4, driven by improved demand visibility, higher capacity utilization, and new product commercialization. The remediation plan for the Bangalore facility is on track for completion by December 2025, with customer deliveries resuming from October 2025.