Hikal, a leading partner to global life sciences companies, has reported a robust rebound in Q3 FY26, posting revenue of Rs. 494 crore, up 10% year-on-year, and EBITDA of Rs. 83 crore, a 15% increase over the same period last year. EBITDA margin rose 70 basis points to 16.8%.
The company recorded an exceptional item of Rs. 38 crore linked to the implementation of the new Labour Code. Profit before tax (PBT) before exceptional items climbed 22% to Rs. 29 crore. The Board has approved an interim dividend of 10% of face value. Hikal’s long-term credit rating remains at A (Stable) from ICRA.
The pharmaceutical segment led growth, generating Rs. 337 crore in revenue, while the crop protection business contributed Rs. 157 crore. The pharma business rebounded in Q3, mitigating the impact of sales deferrals from H1 caused by regulatory developments. Hikal highlighted a “robust pipeline of niche molecules advancing into new therapeutic areas such as Oncology, Anti Migraine, new age Anti Ulcerative and Urology,” alongside geographic expansion into Japan, Latin America, and Korea.
The crop protection segment also saw growth, driven by improved capacity utilization and operational efficiency, despite continued pricing pressure from China. The Personal Care business is now moving toward commercialization, with three to four products expected in FY27.
“Hikal Q3 FY26 marks a return to positive operational performance for our company. Following the regulatory cycle triggered in early 2025, we have transitioned from remediation to recovery and are now positioned for sustainable, higher-quality growth,” said Jai Hiremath, Executive Chairman, Hikal Ltd.
He added, “Supply resumptions in our Pharmaceutical business progressed according to expectations during the quarter, supported by strengthened quality systems and collaboration with global remediation partners. As a result, Q3 witnessed a significant recovery, with sequential improvement in volumes and capacity utilization returning to optimal levels. Our remedial measures with regard to the US FDA audit have been majorly completed. We continue to focus on ensuring the highest standards of quality compliance.”
Consolidated revenue for 9M FY26 stood at Rs. 1,193 crore, with EBITDA of Rs. 115 crore. Strategic investments over the past year—including a High Potency lab and a new pilot plant—have positioned Hikal in high-entry-barrier segments like Oncology, strengthening its differentiated CDMO platform.
Looking ahead, the company expects a strong Q4, supported by “improved demand visibility, higher capacity utilization, and the commercialization of new products,” and believes the foundation for a stronger FY27 is firmly in place.
