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.

Viyash Scientific Limited concluded its 41st Annual General Meeting (AGM) on Tuesday, August 11, 2026, with shareholders approving key governance resolutions including the adoption of financial statements for FY26 and the re-appointment of board members. The meeting, held via Video Conference (VC) / Other Audio Video Means (OAVM), commenced at 4:00 P.M. IST and concluded at 4:55 P.M. IST, in compliance with Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI) circulars.

The proceedings were chaired by Dr. Kamal Sharma, Independent Director and Chairperson, who joined from the UK. Other key attendees included Dr. Haribabu Bodepudi, Managing Director & Group CEO; Mr. Rajaram Narayanan, Wholetime Director & CEO-Animal Health; Mr. Srinivas Vasireddy, Wholetime Director; Mr. Milind Sarwate, Independent Director; Ms. Revati Kasture, Independent Director; Mr. Anuj Poddar, Non-Executive Director; Mr. Ramakant Singani, Chief Financial Officer; and Ms. Yoshita Vora, Company Secretary. Representatives of the statutory and secretarial auditors were also present. Non-Executive Directors Amit Jain and Abhiroop Jayanthi were unable to attend due to prior commitments.

Key Resolutions Approved

Shareholders voted on six items comprising ordinary and special business. The resolutions were put to vote via remote e-voting and e-voting during the meeting. The details of the resolutions are as follows:

Dr. Haribabu Bodepudi provided a detailed performance overview for the year, highlighting key developments and strategic focus areas. He subsequently addressed queries raised by speaker members who had registered to speak at the AGM. Ms. Yoshita Vora confirmed the presence of the requisite quorum and informed members that statutory registers and the Secretarial Auditor's certificate on ESOP compliance were available for electronic inspection.

Governance and Compliance

The company emphasized strict adherence to regulatory guidelines throughout the meeting process. Members were placed on mute by default to ensure smooth conduct, with specific slots allocated for registered speakers. Technical assistance was made available via a helpline provided in the AGM Notice. The Scrutinizer for the e-voting process is expected to submit his report after scrutinizing votes cast through remote e-voting and insta-voting. Results will be announced within statutory timelines and uploaded to the company website.

The adoption of the Audited Financial Statements for the Financial Year ended March 31, 2026, marks the formal closure of the fiscal cycle’s reporting requirements. The re-appointment of Dr. Haribabu Bodepudi and Mr. Rajaram Narayanan ensures continuity in leadership for the Managing Director & Group CEO and Wholetime Director & CEO-Animal Health roles, respectively. The ratification of the Cost Auditor’s remuneration for both FY25-2026 and FY26-2027 reflects ongoing compliance with cost accounting standards. The special resolution regarding the new Articles of Association indicates a structural update to the company’s governing documents, subject to shareholder approval.

What the Numbers Show

While the AGM summary does not disclose specific financial metrics such as revenue or profit figures, the approval of the audited financial statements without qualification from the Statutory Auditors suggests a clean audit opinion. The focus on ratifying Cost Auditor remuneration for two consecutive years highlights the company’s commitment to maintaining robust cost accounting practices, which is critical for transparency in manufacturing and scientific sectors. The seamless conduct of the AGM via VC/OAVM demonstrates the company’s preparedness for digital shareholder engagement, ensuring accessibility for investors across different locations, including international participants like Dr. Kamal Sharma joining from the UK.