Hikal Limited has informed the Exchange about Transcript of Earning call held on August 07, 2025 for the quarter ended June 30, 2025
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Hikal Limited reported a weak Q1 FY26 with consolidated revenue of Rs. 380 crore, down from Rs. 407 crore a year ago, and EBITDA of just Rs. 25 crore as margin collapsed to 6.5% from 14.3%. The pharmaceutical business was hit by an OAI (Official Action Indicated) status from the US FDA on its Bangalore facility, which led to Rs. 50 crore of shipment deferrals to Q2 and Q3 and an EBIT loss of Rs. 27 crore in the segment. Management said 75-80% of the corrective action plan (CAPA) has been completed, with the remainder due by end of September, and they expect to hear back from the FDA in the coming weeks. The crop protection business stayed flat at Rs. 178 crore but continues to face pricing pressure from Chinese oversupply. Management reiterated FY26 guidance of 12-14% pharma revenue growth, flattish crop protection, and a stronger second half led by deferred shipment recovery, new product launches, and ramp-up of CDMO and Animal Health pipelines.
The OAI overhang, sharp margin compression, and the Rs. 50 crore revenue deferral are near-term negatives, but management's reaffirmation of full-year guidance and a clear remediation timeline may limit downside. Shareholders should monitor FDA response timing, pharma shipment recovery in Q2/Q3, and progress on the CDMO, Animal Health, and personal care pipelines for confirmation of the expected H2 recovery.