Promoters of Viyash Scientific sold a combined 5,03,65,847 equity shares in open market transactions on August 26, 2026. The disposal was executed by two promoter entities, CA Harbor Investments and CA Hull Investments.

The sale reduces the promoters' aggregate holding in the company. CA Harbor Investments sold 2,47,61,691 shares, while CA Hull Investments disposed of 2,56,04,156 shares. Both entities are Mauritius-based and directed by Santosh K Gujadhur.

Shareholding Changes

The transaction impacts the promoter group's voting power in Viyash Scientific. Before the sale, CA Harbor held 13,16,80,103 shares (30.14% of total share capital) and CA Hull held 13,61,60,231 shares (31.17%).

Post-transaction, CA Harbor's stake fell to 24.47% of total share capital, while CA Hull's holding dropped to 25.31%. In terms of diluted voting capital, CA Harbor's stake reduced from 27.44% to 22.28%, and CA Hull's from 28.37% to 23.03%.

Regulatory Disclosure

The companies filed the disclosure under Regulation 29(2) read with Regulation 29(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that CA Harbor and CA Hull are persons acting in concert with each other.

No encumbrances, pledges, or liens were reported on the shares held by either entity before or after the transaction. The total equity share capital of Viyash Scientific remains unchanged at ₹87,37,50,954, comprising 43,68,75,477 equity shares of face value ₹2 each.

Viyash Scientific reported a consolidated net profit after tax (PAT) of ₹793 million for the quarter ended June 30, 2026, marking a 114.9% year-on-year increase. The Hyderabad-based animal health and pharmaceutical company also saw consolidated revenues rise 19.5% to ₹9,464 million, driven by strong performance in its formulations and APIs segments. This financial acceleration coincides with the company’s strategic push into the European companion animal market through the acquisition of Bio For Life in Italy. On a standalone basis, the parent entity recorded revenue from operations of ₹3,537 million and a net profit of ₹209 million.

The filing, submitted pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights significant margin expansion across both consolidated and standalone metrics. Consolidated EBITDA (excluding ESOP costs) jumped 59.2% to ₹2,047 million, lifting the EBITDA margin to 21.6% from 16.2% in the corresponding quarter of FY26. The company maintained a lean balance sheet with net debt at ₹861 million, resulting in a net debt-to-EBITDA ratio of just 0.1x. Management noted that this represents a significant improvement from 0.24x in the previous quarter and nearly 1x a year ago, positioning the company as virtually debt-free on a net basis. The results were reviewed by the Audit Committee and approved by the Board of Directors on August 11, 2026.

Financial Performance Overview

The consolidated results for Q1FY27 reflect broad-based growth compared to Q1FY26, with notable improvements in gross margins and operating efficiency. Gross margin improved to 54.1% from 51.9% in Q1FY26, an expansion of approximately 220 basis points. Profit before tax increased by 132% to ₹1,120 million. Finance costs declined to ₹125 million from ₹204 million in Q1FY26, reflecting continuous focus on balance sheet strengthening. Additionally, the company incurred an incremental expense of ₹190 million due to employee stock options granted during the quarter pursuant to the composite scheme of amalgamation.

*EBITDA refers to EBITDA excluding ESOP costs. Standalone gross margin and EBITDA were not explicitly broken out in the extract provided.

Segment Growth and Strategic Acquisitions

Revenue from formulations surged 33% year-on-year to ₹5,547 million, while APIs grew 4% to ₹3,833 million. The formulations segment showed robust growth across geographies, with emerging markets up 36% and the USA up 60%. Emerging market growth was primarily volume-driven, with a 25% increase in volumes in countries like Turkey, Brazil, and Mexico. The US business growth was attributed to backward integration of complex products and moving volume products to India, which improved margins while maintaining a 50-55% market share.

A key strategic development is the acquisition of Bio For Life in Italy, aimed at expanding Viyash’s presence in the companion animal segment. The Share Purchase Agreement was executed on July 21, 2026, with an expected closing in September 2026. This move provides access to a large companion animal market in Italy and a portfolio of 85-90 products that can be extended to other core markets. Management indicated that the integration and registration process for these products will take 18-24 months, with significant revenue contributions expected after two years.

Corporate Restructuring and Amalgamation

The financial results incorporate the impact of the Composite Scheme of Amalgamation approved by the Board on September 26, 2024, and sanctioned by the National Company Law Tribunal (NCLT), Hyderabad on November 18, 2025. The scheme became effective on December 16, 2025, merging several transferor companies including Viyash Life Sciences Private Limited and Symed Labs Limited into the holding company. The accounting treatment followed the 'Pooling of Interest method' under Ind AS 103, leading to the restatement of prior period consolidated figures as if the combination had occurred from April 01, 2024. As part of the scheme, the company allotted 181.9 million equity shares and 20.3 million warrants to eligible shareholders of erstwhile Viyash Life Sciences Private Limited.

What the Numbers Show

The divergence between revenue growth (19.5%) and EBITDA growth (59.2%) indicates significant operating leverage being realized post-integration. The expansion of the EBITDA margin by 540 basis points suggests that cost synergies and a higher-value product mix are impacting the bottom line disproportionately to top-line growth. Furthermore, the reduction in finance costs, due to lower debt levels, contributed to the sharp rise in net profit. The standalone PAT growth of 20.9% (from ₹173 million to ₹209 million) underscores that the parent entity itself is driving efficiency gains, not just the consolidated group structure. Total ESOP costs for FY27 are expected to be around ₹1,500 million, dropping to ₹250-300 million in FY28.

R&D and Regulatory Milestones

Viyash continues to strengthen its regulatory footprint with four regulatory audits and 66 customer audits completed recently. The company secured approvals for three APIs and two finished dosage forms (FDFs) in the US. Additionally, six APIs and four FDFs were launched across MENA, EU, China, and LATAM regions. The R&D pipeline remains robust with over 85 APIs and 81+ animal FDFs in development. The company has also completed its high-potent formulation development lab and is targeting commercialization of new oncology products from 2029 onwards.

Viyash Scientific hosted an earnings call on August 12, 2026, at 3:30 pm to discuss these results.