Hikal Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Hikal Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Hikal reported Q1 FY27 revenue of Rs 403 crores with an EBITDA margin of 9.2% and a net loss of Rs 7 crores, as the Pharmaceutical business grew year-on-year despite a planned shutdown for U.S. FDA remediation. Management said the Crop Protection business saw sequential volume improvement but continued pricing pressure from Chinese competition and higher raw material costs, while the Animal Health business delivered another quarter of demand-led growth. The company also commissioned a new Personal Care manufacturing line at Panoli and guided to full-year revenue growth of approximately 14% to 16% and EBITDA growth of 25% to 30% for FY27.
Numbers mentioned
Revenue: Rs 403 crores (Q1 FY27)
p. 4
“For Q1 FY27, we reported revenue of Rs 403 crores with an EBITDA margin of 9.2%”
Sameer Hiremath, page 4 of the filed PDF · View the filing
EBITDA margin: 9.2% (Q1 FY27)
p. 6
“Our EBITDA margin stood at 9.2% and PAT at Rs. (-7) crores.”
Kuldeep Jain, page 6 of the filed PDF · View the filing
EBITDA: Rs. 37 crores (Q1 FY27)
p. 6
“Q1 FY27 reported revenues stood at Rs. 403 crores and EBITDA of Rs. 37 crores.”
Kuldeep Jain, page 6 of the filed PDF · View the filing
Exceptional income: Rs 9 crores (Q1 FY27)
p. 6
“During the quarter, we reported Rs. 9 crores as exceptional income on account of reversal of excess provision which we made in the last year Q4, with regard to the new Labor Codes.”
Kuldeep Jain, page 6 of the filed PDF · View the filing
Capital expenditure: Rs. 45 crores (Q1 FY27)
p. 6
“Capital expenditure during the quarter stood at Rs. 45 crores, focused on de-bottlenecking, regulatory upgrades and building new capacities.”
Kuldeep Jain, page 6 of the filed PDF · View the filing
Debt to equity ratio: 0.53 (Q1 FY27)
p. 7
“Our debt to equity ratio stands at 0.53 against 0.56 in March quarter.”
Kuldeep Jain, page 7 of the filed PDF · View the filing
Pharma business revenue: Rs. 233 crores (Q1 FY27)
p. 7
“For Q1 FY27, the Pharma business reported revenue of Rs. 233 crores, EBIT of Rs. 8 crores and an EBIT margin of 3.2%.”
Manoj Mehrotra, page 7 of the filed PDF · View the filing
Pharma capacity utilization: 55%-60% (Q1 FY27)
p. 7
“the pharma manufacturing facilities at Panoli and Bangalore operated at an average capacity utilization of nearly 55%-60%”
Manoj Mehrotra, page 7 of the filed PDF · View the filing
Crop Protection revenue: Rs. 170 crores (Q1 FY27)
p. 8
“For Q1 FY27, the Crop Protection Business reported a revenue of Rs. 170 crores, with an EBIT of Rs. (-6) crores.”
Ravi Khadabadi, page 8 of the filed PDF · View the filing
Net debt: Rs. 685 crores (FY26)
p. 6
“we have reduced our net debt from approximately Rs. 815 crores in FY24 to Rs. 685 crores by the end of FY26, with our debt-to-equity ratio now being 0.53.”
Sameer Hiremath, page 6 of the filed PDF · View the filing
Animal Health annual turnover: over Rs. 100 crores (FY26)
p. 6
“The Animal Health has now scaled an annual turnover of approximately over Rs. 100 crores last year and continues to witness strong customer traction”
Sameer Hiremath, page 6 of the filed PDF · View the filing
Raw material cost impact: Rs 7-8 crores (Q1 FY27)
p. 12
“in our quarter one number itself, we got impacted by almost 7 crores to 8 crores of raw material increase in our crop division because of raw material energy prices, which impacted our EBITDA in this one quarter itself.”
Sameer Hiremath, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 14% to 16% · FY27
stated firmly by Sameer Hiremath
p. 6
“we believe that the momentum will accelerate even further in H2 FY27, with full-year growth expectations in the range of approximately 14% to 16%, with strong growth in pharma and marginal growth in crop, and EBITDA growth in the range of 25%-30%.”
Sameer Hiremath, page 6 of the filed PDF · View the filing
Crop Protection revenue growth — mid to high single digit growth
stated as an aspiration by Sameer Hiremath
p. 11
“We will see marginal growth, mid to high single digit growth going forward.”
Sameer Hiremath, page 11 of the filed PDF · View the filing
Animal Health revenue — Rs. 400 crores plus · FY30
stated as an aspiration by Anish Swadi
p. 9
“The business continues to scale steadily and we still remain confident of growing this business to Rs. 400 crores plus by FY30, as indicated earlier”
Anish Swadi, page 9 of the filed PDF · View the filing
Animal Health EBITDA margin — 20% plus
stated as an aspiration by Anish Swadi
p. 10
“the margin profile that we expect once we reach that operational leverage will be 20% plus EBITDA margins for the Animal Health business.”
Anish Swadi, page 10 of the filed PDF · View the filing
Personal Care revenue — about Rs. 200 crores · within three years
stated as an aspiration by Sameer Hiremath
p. 11
“as we grow in the next three years, post this year, we expect to cross about Rs. 200 crores in revenue in the business.”
Sameer Hiremath, page 11 of the filed PDF · View the filing
Personal Care EBITDA margin — Over 20%
stated as an aspiration by Sameer Hiremath
p. 11
“Over 20%, EBITDA. Typically to the Pharma business.”
Sameer Hiremath, page 11 of the filed PDF · View the filing
U.S. FDA re-inspection — end of FY27
stated conditionally by Sameer Hiremath
p. 4
“We expect a re-inspection towards the end of this financial year.”
Sameer Hiremath, page 4 of the filed PDF · View the filing
DMF filing rate — 6 to 7 filings per year
stated firmly by Sameer Hiremath
p. 4
“increases our DMF filing capability, which is now going to be 6 to 7 filings per year compared to 2 to 3 filings historically.”
Sameer Hiremath, page 4 of the filed PDF · View the filing
Company revenue CAGR — 15% to 16% CAGR · FY28 and beyond
stated as an aspiration by Sameer Hiremath
p. 13
“We expect this 15% to 16% CAGR to continue going forward and the base will keep getting bigger, but we are expecting 15% to 16% CAGR every year”
Sameer Hiremath, page 13 of the filed PDF · View the filing
Pharma business CAGR — 18% to 19% CAGR
stated as an aspiration by Sameer Hiremath
p. 14
“I think pharma will be 18% to 19% CAGR going forward and maybe even faster.”
Sameer Hiremath, page 14 of the filed PDF · View the filing
FY28 performance — FY28
stated as an aspiration by Sameer Hiremath
p. 13
“So, we expect next year FY28 to be a substantially better year compared to this year, which will also be a good year compared to last year.”
Sameer Hiremath, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said they expect 20% plus EBITDA margins once operational leverage is reached.
Answered by Anish Swadi
Asked by Aman Vora: What margin profile is expected for the Animal Health business?
p. 10
“So, the margin profile that we expect once we reach that operational leverage will be 20% plus EBITDA margins for the Animal Health business.”
Anish Swadi, page 10 of the filed PDF · View the filing
Management said end customers are under pressure, capital allocation is being kept strict, and only marginal growth is expected.
Answered by Sameer Hiremath
Asked by Aman Vora: What would it take for the Crop Protection business to recover, and what is the outlook over three years?
p. 10
“So, we are expecting very marginal growth in the crop division. That’s why we have diversified into allied businesses.”
Sameer Hiremath, page 10 of the filed PDF · View the filing
Management attributed the margin drag to ongoing FDA remediation costs, saying meaningful improvement will come from FY28.
Answered by Sameer Hiremath
Asked by Aman Vora: Given pharma growth expectations, why isn't EBITDA margin guidance higher?
p. 12
“This is a transition year where the FDA remediation costs are still hitting our fixed cost numbers, so it’s depressing EBITDA.”
Sameer Hiremath, page 12 of the filed PDF · View the filing
Management said pending filing approvals will ramp up revenue once the FDA clearance comes through.
Answered by Sameer Hiremath
Asked by Rohit Sinha: How will incremental revenue from pending FDA-related filings show up in FY28?
p. 12
“we expect, once the remediation happens, we have some filings that are pending approval for want of the FDA approval. Once that approval comes, those filings will be done and that will have a ramp up in revenues in the next financial year in FY28.”
Sameer Hiremath, page 12 of the filed PDF · View the filing
Management said pass-through exists in some contracts but competitive pressure from China and limited price elasticity constrain increases.
Answered by Sameer Hiremath
Asked by Rohit Sinha: Are Crop Protection contracts being revised for pricing pass-through?
p. 12
“There is a pass-through in some of the contracts, but some of the contracts, where it’s competitive in China, customers are partially compensating us because of the nature of the end product.”
Sameer Hiremath, page 12 of the filed PDF · View the filing
Management described ongoing dialogue with the FDA and said they are hopeful of a re-inspection by year end, though it could be delayed.
Answered by Sameer Hiremath
Asked by Raghuram Kuchi: How confident is management about clearing the U.S. FDA re-inspection this year?
p. 13
“We are hoping that they come by the end of this year and we will be ready for a re-inspection by end of this year. It may get delayed by a few months here and there, but we are quite hopeful that we will do it.”
Sameer Hiremath, page 13 of the filed PDF · View the filing
Management said no customer contracts have been lost and multiple audits have cleared the facility.
Answered by Sameer Hiremath
Asked by Raghuram Kuchi: Have customers remained satisfied through the remediation process?
p. 14
“We have not lost a single contract or a single customer in the last one year.”
Sameer Hiremath, page 14 of the filed PDF · View the filing
Risks flagged
Pricing pressure in Crop Protection due to excess supply from China
p. 5
“Pricing, however, continues to remain under pressure due to excess supply from China limiting opportunities for price increases despite improving demand.”
Sameer Hiremath, page 5 of the filed PDF · View the filing
Higher raw material and energy costs from geopolitical tensions
p. 5
“Additionally, the margins are impacted due to geopolitical tensions leading to increase in raw materials and energy costs.”
Sameer Hiremath, page 5 of the filed PDF · View the filing
Deferred CDMO customer orders in Crop Protection due to customer inventory build-up
p. 8
“In our CDMO business, export demand remained subdued, with certain customer orders deferred to subsequent quarters owing to inventory build-up at the customer end.”
Ravi Khadabadi, page 8 of the filed PDF · View the filing
FDA remediation costs continuing to depress EBITDA margins
p. 12
“This is a transition year where the FDA remediation costs are still hitting our fixed cost numbers, so it’s depressing EBITDA.”
Sameer Hiremath, page 12 of the filed PDF · View the filing
Geopolitical volatility potentially reversing raw material price normalization
p. 13
“But if the war starts again, again, the prices might go up. There’s so much volatility and uncertainty in this geopolitical scenario right now.”
Sameer Hiremath, page 13 of the filed PDF · View the filing
Weak end-market performance among large crop protection customers
p. 10
“So, the problem is that the crop industry, the end customers are also not doing very well.”
Sameer Hiremath, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.