Indian life sciences company Hikal has reported a return to growth in the third quarter of the 2025–26 financial year, with revenue and earnings rising after a challenging first half marked by regulatory disruptions.
The Mumbai-based firm posted consolidated revenue of ₹494 crore (£47m approx.) for the quarter ended 31 December 2025, up 10% compared with the same period a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 15% year-on-year to ₹83 crore, while margins improved by 0.7 percentage points to 16.8%.
Profit before tax and exceptional items increased 22% to ₹29 crore. The company’s board approved an interim dividend of 10% of face value. Hikal also reported an improved debt-to-equity ratio of 0.58 times, reflecting a stronger balance sheet.
The company said the performance marked a “decisive return to operational recovery” following pharmaceutical sales deferrals in the first half of the year due to regulatory developments, including a US Food and Drug Administration (FDA) audit. It added that remediation measures have largely been implemented and supply resumptions progressed during the quarter, lifting capacity utilisation.
Hikal’s pharmaceutical segment generated ₹337 crore in revenue during the quarter, with an operating margin of 12.3%. The company expects most deferred first-half volumes to be recovered by the end of the fourth quarter. It highlighted expansion into Japan, Latin America and South Korea, alongside investments in a high-potency laboratory and a new pilot plant.
The crop protection division reported revenue of ₹157 crore, with a 3% operating margin. Although global pricing pressures persist, the company noted improving demand and order inflows.
For the first nine months of the financial year, revenue stood at ₹1,193 crore and EBITDA at ₹115 crore.
Vice Chairman Sameer Hiremath said the company had moved “from remediation to recovery” and was positioned for stronger growth in the next financial year.
