Mumbai, India – Hikal Ltd has announced its financial results for the first quarter of the fiscal year 2026, reporting a consolidated net loss of ₹23 crore. This marks a significant downturn from the ₹5 crore net profit posted in the same quarter of the previous fiscal year. The company’s revenue from operations also saw a 6.5% year-on-year decline, settling at ₹380 crore.
The specialty chemicals company faced a challenging quarter, with its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) falling by 57.4% to ₹25 crore from ₹58 crore in the first quarter of FY25. Consequently, the EBITDA margin for the quarter stood at 6.5%, a sharp contrast to the 14.3% margin reported in the corresponding period last year.
The performance was impacted by a temporary deferment of offtake in the pharmaceutical division. This followed an Official Action Indicated (OAI) communication from the US Food and Drug Administration (US FDA) in May 2025. The pharmaceuticals segment registered a revenue of ₹203 crore, while the crop protection business contributed ₹178 crore to the total revenue.
Despite the headwinds in the first quarter, Hikal Ltd highlighted positive developments in its regulatory and compliance achievements. The company successfully concluded Good Manufacturing Practice (GMP) audits at its Bangalore API facility, conducted by Brazil’s National Health Surveillance Agency (ANVISA) and Japan’s Pharmaceuticals and Medical Devices Agency (PMDA). These successful audits underscore the company’s commitment to global quality standards.
Looking ahead, the management remains optimistic about its performance for the remainder of the fiscal year. Hikal has reiterated its confidence in achieving its guidance for FY26. The company anticipates a significant recovery starting from the third quarter, with a more robust performance expected in Q3 and Q4 of FY26. This forward-looking confidence suggests that the company views the first-quarter results as a temporary setback and is on a strategic path to regain its growth momentum.
