Results- Financial Results for March 31,2 026

Hikal Ltd reported a net loss of Rs 487 million for FY2026, a sharp reversal from net profit of Rs 909 million in FY2025. Total revenue declined 7.9% to Rs 17,126 million from Rs 18,598 million, driven by a 12.6% fall in the Pharmaceuticals segment (to Rs 10,210 million) following a USFDA warning letter for its Jigani facility. Two material exceptional items weighed on results: an impairment charge of Rs 471 million for assets at a repurposed manufacturing plant, and Rs 380 million in employee benefit costs from new Indian labour codes (gratuity and compensated absences). PBT before exceptional items fell to just Rs 69 million from Rs 1,239 million. The company declared a total dividend of 30% (Rs 0.60 per share), down from 70% (Rs 1.40) the prior year. Operating cash flow remained healthy at Rs 3,021 million. The auditors issued an unmodified opinion but included an Emphasis of Matter on ongoing environmental law proceedings pending before the Supreme Court. Total assets declined to Rs 23,654 million from Rs 25,291 million.