Quarterly revenue rose by 30.5% year-on-year to ₹403 crore, up from ₹308.4 crore, bolstered by improving customer demand and operational execution despite geopolitical and macroeconomic challenges.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 49% to ₹36.6 crore, compared to ₹24.6 crore in the previous year’s quarter. The EBITDA margin improved to 9% from 6.5% year-on-year.
The pharmaceutical sector showed continued recovery, driven by better customer offtake. This segment comprised a 58% share across proprietary products and contract development and manufacturing organization (CDMO) activities, aided by increased demand in regulated markets.
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The crop protection segment saw growth in own product volumes, though CDMO operations were affected by customer inventory adjustments and rising input expenses. Hikal completed over 100 successful customer audits at its Bengaluru facility.
The company anticipates that business momentum will progressively strengthen through FY27, supported by improved demand visibility, expanding CDMO prospects, and a sustained focus on operational excellence.
In Q1 FY27, Hikal’s pharmaceutical segment reported revenue of ₹233 crore, reflecting a year-on-year increase of 15.2%. The company continued to expand its portfolio across specialized active pharmaceutical ingredients (APIs) and specialty therapies, including oncology, central nervous system (CNS), gastroenterology, and anti-diabetics.
Hikal enhanced its presence in both regulated and emerging markets, concentrating efforts on Japan, Latin America (LATAM), the Middle East and North Africa (MENA), and other strategic regions. The company noted an increase in its drug master file (DMF) submissions, now averaging 5-6 annually, up from 2-3 in previous years.
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The mix of molecules continued to lean towards higher-value final APIs. Additionally, a new current good manufacturing practices (cGMP) pilot plant was commissioned in Pune to enhance pharmaceutical development and scaling capabilities.
Hikal maintained its engagement with the US Food and Drug Administration (US FDA), expecting reinspection within the current financial year. The company also achieved EcoVadis Gold recognition.
In the crop protection sector, own products demonstrated sequential growth due to higher domestic volumes, while global demand gradually improved amid persistent pricing pressures. CDMO demand remained subdued due to ongoing inventory adjustments at customer sites.
The company remarked that geopolitical developments had led to a notable rise in input costs, including raw materials, which exerted margin pressure. Four CDMO molecules are currently under development.
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Hikal’s personal care division was launched in July 2026, with several products projected to contribute to revenue in FY27 as part of its portfolio diversification strategy.
Jai Hiremath, Executive Chairman of Hikal Ltd, stated, “Q1 FY27 marked a slower onset for the year as we move from regulatory disruptions to growth. We achieved revenue of ₹403 Cr., with an EBITDA margin of 9.2%.
In our Pharmaceutical Business, we are nearing the final stages of our remediation plan with the US FDA.
A considerable investment of time and resources has been devoted to attaining the highest compliance standards. The remediation efforts have hampered sales in our Pharma business as we extended our plant shutdowns based on recommendations from global regulatory bodies and certain consultants.
We are optimistic about leveraging our CDMO pipeline and specialty APIs, including Oncology, CNS, Gastroenterology, and complex chemistries. Ongoing investments in High Potency capabilities and expedited DMF filings will further bolster our long-term competitive edge.
Shares of Hikal Ltd closed at ₹216.60, down by ₹15.55, or 6.70%, on the BSE.
