Hikal's Q2 FY 2025-26 Quarterly Results

Result Summary

• Hikal Ltd reported a 16.0% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 29.3%.
• Its expenses for the quarter were down by 10.8% QoQ and 14.3% YoY.
• The net profit increased 55.8% QoQ and decreased 290.7% YoY.
• The earnings per share (EPS) of Hikal Ltd declined at 2.83 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Hikal Ltd is a renowned player in the pharmaceutical and chemical industry, known for providing solutions across various sectors such as pharmaceuticals, crop protection, and animal health. The company specializes in research and development, manufacturing, and supply of APIs (Active Pharmaceutical Ingredients), intermediates, and specialty chemicals. While specific recent developments are not available, the company operates in a dynamic sector that often sees regulatory changes and market demand fluctuations. Hikal Ltd’s position in the industry hinges on its ability to innovate and maintain quality standards amidst competitive pressures.

Revenue

Hikal Ltd reported a total income of ₹320.40 crores in Q2FY26, compared to ₹381.40 crores in Q1FY26 and ₹453.30 crores in Q2FY25. This reflects a quarter-over-quarter (QoQ) decrease of 16.0% and a year-over-year (YoY) decline of 29.3%. The company experienced a reduction in income across both comparative periods, indicating a substantial contraction in its revenue stream over the year. Such a trend highlights the challenges Hikal Ltd faces in maintaining revenue levels amid industry and market fluctuations.

Profitability

In Q2FY26, Hikal Ltd recorded a loss in its profitability measures. The company reported a profit before tax (PBT) of -₹47.00 crores, worsening from -₹30.40 crores in Q1FY26 and significantly down from a PBT of ₹24.80 crores in Q2FY25. This represents a QoQ increase in loss by 54.6% and a YoY decline of 289.5%. The profit after tax (PAT) followed a similar pattern, with a figure of -₹34.90 crores in Q2FY26, compared to -₹22.40 crores in Q1FY26 and ₹18.30 crores in Q2FY25, marking a QoQ increase in loss by 55.8% and a YoY decrease of 290.7%. The earnings per share (EPS) also declined, recorded at -₹2.83 in Q2FY26, from -₹1.82 in Q1FY26 and ₹1.48 in Q2FY25, reflecting a QoQ decline of 55.5% and a YoY decrease of 291.2%.

Operating Metrics

Total expenses for Hikal Ltd in Q2FY26 stood at ₹367.40 crores, down from ₹411.80 crores in Q1FY26 and ₹428.50 crores in Q2FY25. This indicates a QoQ reduction in expenses by 10.8% and a YoY decrease of 14.3%. Despite the reduction in expenses, the company still faced significant losses, affecting its overall financial health. The tax component also shifted, with a tax-related figure of -₹12.10 crores in Q2FY26, compared to -₹8.00 crores in Q1FY26 and ₹6.50 crores in Q2FY25, showing a QoQ increase in the tax-related component by 51.2% and a YoY change of -286.2%. These operating metrics underscore the financial hurdles that Hikal Ltd is navigating in its business operations.