Hikal posted a sharp recovery in the fourth quarter of FY26, returning to profitability after a loss-making previous quarter, even as the life sciences company grappled with regulatory setbacks and one-time strategic costs.
The company reported consolidated revenue from operations of Rs. 519.4 crore for the quarter ended March 31, 2026, marking a 5% sequential rise from Rs. 494.3 crore in Q3 FY26.
Profit After Tax (PAT) rebounded to Rs. 14.4 crore in Q4, reversing a net loss of Rs. 5.9 crore in the previous quarter. EBITDA before exceptional items stood at Rs. 55.4 crore, reflecting strong operational improvement.
Despite the quarterly recovery, Hikal’s Q4 profit remained sharply lower year-on-year, falling 71% from Rs. 50.2 crore in Q4 FY25 as the company absorbed regulatory pressures and strategic accounting adjustments.
The Board of Directors recommended a final dividend of 20% (Rs. 0.40 per equity share), taking the total FY26 dividend payout to 30% (Rs. 0.60 per share).
Hikal’s Crop Protection business emerged as the key growth driver during the quarter, with revenue rising to Rs. 227.8 crore from Rs. 201.1 crore in the corresponding quarter last year.
The Pharmaceuticals segment posted Q4 revenue of Rs. 291.6 crore but continued to face pressure following the USFDA warning letter issued in August 2025 for the company’s Jigani manufacturing facility.
Annual profitability was significantly impacted by one-time strategic and regulatory adjustments amounting to Rs. 85.1 crore.
The company booked an impairment charge of Rs. 47.1 crore linked to the repurposing of an existing manufacturing plant to support a different product portfolio aligned with long-term growth plans.
In addition, Hikal recognized an incremental Rs. 38.0 crore impact arising from the implementation of new Government of India Labour Codes, which affected employee benefit provisions.
While regulatory headwinds and exceptional costs weighed on annual earnings, the company’s sequential recovery in both revenue and profitability points to improving momentum heading into FY27.
