Hikal Limited has informed the Exchange about Transcript of Earnings Call held on May 14, 2025 for the quarter and financial year ended March 31, 2025
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Hikal Limited held its Q4 & FY25 earnings call on May 14, 2025. For Q4 FY25, revenue was INR 552 crores with EBITDA of INR 123 crores (margin of 22.4%, up 410 bps YoY). Full-year FY25 revenue stood at INR 1,860 crores with EBITDA of INR 328 crores (margin of 17.7%, up 270 bps YoY). The Pharma business posted FY25 revenue of INR 1,168 crores and EBIT of INR 137 crores (47% YoY growth), with FY26 revenue guidance of 12-15%. Crop Protection reported FY25 revenue of INR 692 crores with EBIT margin of 11.4%, and management expects flat performance in FY26 with growth resuming in FY27. The Board recommended a total dividend of INR 1.40 per share (70% of face value). Capex guidance is around INR 200 crores per year, and a new high-potency laboratory is expected to be operational by Q3 FY26. FDA observations have been responded to with no data integrity issues. ROE/ROCE of 7.3%/9.9% may decline slightly in FY26 due to depreciation drag from a recently capitalized Crop Protection asset.
Positives include strong margin expansion and a healthy order pipeline, but near-term growth is mixed — Pharma is the growth engine while Crop Protection will remain flat in FY26. Shareholders should expect a 2-3 year path to peak profit recovery (FY22 peak PAT was INR 160 crores vs FY25's INR 91 crores), with potential ROE/ROCE softness in FY26 before improving from FY27.