Hikal, a preferred long-term partner to leading global life sciences companies, has reported a steady operational performance for the first quarter of FY27, with revenue growth supported by improving customer demand and stronger execution despite ongoing geopolitical and macroeconomic challenges.

 

The company posted consolidated revenue of Rs. 403 crore in Q1 FY27, compared with Rs. 380 crore in Q1 FY26, marking a growth of 6.2% year-on-year. EBITDA stood at Rs. 37 crore, rising 47.4% YoY, with EBITDA margin expanding to 9.2% from 6.6% a year ago, an improvement of 260 basis points.

 

Hikal’s Pharmaceuticals business continued its recovery trajectory, contributing 58% of consolidated revenue, with revenue rising to Rs. 233 crore, a growth of 15.2% YoY. The business saw improving customer offtake across its Own Products and CDMO segments, supported by strengthening demand in regulated markets.

 

The company continued to expand its portfolio across differentiated APIs and specialty therapies, including Oncology, CNS, Gastroenterology and Anti-diabetics. It also strengthened its presence across regulated and emerging markets, with increased focus on Japan, LATAM, MENA and other strategic geographies.

 

Hikal’s DMF filing momentum accelerated, with annual filings expected to increase to 5–6 compared with the historical range of 2–3 filings. The company also commissioned a new cGMP pilot plant in Pune to enhance pharmaceutical development and scale-up capabilities.

 

The Crop Protection business recorded revenue of Rs. 170 crore in Q1 FY27, impacted by continued customer inventory adjustments in the CDMO segment and higher input costs. However, Own Products delivered volume-led growth, supported by improving domestic demand.

 

The company said four CDMO molecules are currently under development, while its Personal Care business achieved commercialisation in July 2026, with select products expected to contribute revenues during FY27 as part of its portfolio diversification strategy.

 

Hikal’s Bangalore facility successfully passed more than 100 customer audits, reinforcing operational reliability and customer confidence. The company also received an EcoVadis Gold rating, placing it among the top 5% of companies globally on sustainability performance.

 

The company expects business momentum to improve progressively through FY27, supported by stronger demand visibility, expanding CDMO opportunities and continued focus on operational excellence.

 

Commenting on the results, Jai Hiremath, Executive Chairman, said: "Q1FY27 was a slower start to the beginning of the year as we transition from regulatory-led disruption to growth. We delivered Revenue of Rs. 403 Cr. with an EBITDA margin of 9.2%.

 

"In our Pharmaceutical Business we are in the penultimate stage of our remediation plan with the US FDA. A significant amount of time and resources have been invested to ensure the highest level of compliance. The remediation plan has slowed down sales in our Pharma business as we have taken additional time in our plant shutdowns based on recommendations by global regulatory authorities as well as some of our consultants. 

 

"We are confident on capitalising on our CDMO pipeline and specialty APIs, Oncology, CNS, Gastroenterology and complex chemistries. Continued investments in High Potency capabilities and accelerated DMF filings will further strengthen our long-term competitive position."

 

He added: "Our Crop Protection business witnessed improved domestic demand in the Own Products segment supported by higher volumes, while CDMO demand remained subdued due to ongoing inventory adjustments at our customer’s end. In addition, geopolitical developments led to a significant rise across all input costs including raw materials, resulting in margin pressure. We expect a sequential improvement going forward.

 

"Our Animal Health business continued to deliver resilient performance, supported by stronger customer partnerships, commercialization of new programs and an expanding development pipeline comprising of multiple advanced intermediates and NCEs.

 

"Our Personal Care business achieved an important milestone with the commissioning of the dedicated Panoli manufacturing facility. We remain focused on customer approvals, expanding our UV filter skincare portfolio and strengthening partnerships with leading global and domestic personal care companies to capitalize on growing demand for specialty ingredients."