HIKALNSEHikal Limited· PharmaceuticalsMediumNeutral
Announced Mon, 19 May · 18:24 IST

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

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedInvestor Communications View source PDF

HIKAL · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

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.

Likely market impact

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.