Hikal Limited reported a consolidated net loss of ₹49 crore for the financial year ended March 31, 2026, compared to a net profit of ₹91 crore in the previous year. The annual loss was primarily driven by exceptional items totaling ₹85 crore, which included an impairment charge of ₹47 crore for repurposing a manufacturing plant at Panoli and costs related to new Labour Codes. For the quarter ended March 31, 2026, the company posted a net profit of ₹14 crore and revenue from operations of ₹519 crore. The board has recommended a total dividend of 30%, including a final dividend of 20%, subject to shareholder approval.

Q4 and FY26 Financial Performance

The quarterly performance showed a recovery, with EBITDA rising to ₹105 crore in Q4FY26 from ₹83 crore in the preceding quarter. However, annual profitability was impacted by the exceptional items. Excluding these items, the profit before tax (PBT) for the year stood at ₹7 crore. The company recorded a total revenue of ₹1,713 crore for FY26 and an EBITDA margin of 12.9%.

Operational Highlights

The Pharmaceutical business witnessed sequential improvement in EBIT margins, with H2 FY26 revenue growing 60% over H1 FY26 to ₹629 crore. The Crop Protection business accelerated during the quarter, with revenues growing 45% quarter-on-quarter and 13% year-on-year to ₹228 crore. Management indicated that the worst of the inventory correction cycle is behind them, though pricing challenges persist due to structural overcapacity and competition. The company also noted that its diversification strategy into Personal Care and Specialty Chemicals is gaining traction.

Outlook and Governance

Jai Hiremath, Executive Chairman, stated that the company is moving from a phase of remediation to sustainable growth. He highlighted that strategic investments in high-potency laboratories and pilot plants are now fully operational. The company expects new products in the Specialty Chemicals and Personal Care segments to contribute meaningfully from FY27 onwards. Additionally, the board appointed Mr. Sandip Parikh as an Additional Director in the category of Independent Director for a period of five years effective May 27, 2026.

Promoters of Hikal Limited have confirmed that their shareholding in the company remained unencumbered throughout the financial year 2025-26. The disclosure, submitted to BSE Limited and National Stock Exchange of India Limited, covers 41,940,750 equity shares held by Kalyani Investment Company Limited (KICL) and BF Investment Limited (BFIL).

The filing was made by B.N. Kalyani, a Promoter of Hikal Limited, in compliance with Regulation 31(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The regulation requires promoters to declare whether their shares are free from any encumbrance, directly or indirectly, during the financial year.

KICL holds 38,667,375 equity shares, representing a 31.36% stake, while BFIL holds 3,273,375 equity shares, accounting for 2.65% of the total share capital. The declaration confirms that none of these shares were encumbered at any point during FY26.

Promoter Group Shareholding Details

The following table details the shareholding of the promoter group entities as on March 31, 2026: