Viyash Scientific Limited has completed the allotment of 1,13,001 equity shares to eligible employees under its Employee Stock Option Plan 2020, marking another milestone in the company's employee incentive program.

ESOP Allotment Details

The Nomination and Remuneration Committee of sequent scientific approved the allotment through a circular resolution passed on February 23, 2026. The key parameters of this allotment are outlined below:

Impact on Share Capital Structure

The allotment has resulted in a significant change to the company's equity share capital structure. The newly allotted shares will rank pari passu in all respects with the existing equity shares of the company.

Employee Stock Option Plan Framework

The allotment was executed under the SeQuent ESOP 2020, which serves as the company's primary employee incentive mechanism. The exercise price of Rs. 86 per share represents the price at which eligible employees could convert their stock options into equity shares.

Corporate Communication

The company has formally communicated this development to both BSE Limited and National Stock Exchange of India Limited, ensuring compliance with regulatory requirements. Yoshita Vora, Company Secretary & Compliance Officer, signed the official communication on behalf of Viyash Scientific Limited.

The allotment reflects the company's commitment to employee participation in its growth story through equity-based compensation programs.

Sequent Scientific , now operating as Viyash Scientific Limited following its merger completion, has reported strong financial performance for Q3 FY26, marking its first quarter as a unified entity. The company demonstrated significant growth across key metrics while maintaining robust operational efficiency.

Financial Performance Highlights

The merged entity delivered impressive results for Q3 FY26, with revenue from operations reaching INR 858 crores, representing 11% year-on-year growth. The standout performance came from profitability metrics, with adjusted EBITDA surging 64% to INR 185 crores and margins expanding by 390 basis points to 21%.

For the nine-month period FY26, the company maintained consistent momentum with revenue of INR 2,500 crores showing 12% growth year-on-year. Adjusted EBITDA exceeded INR 500 crores with 58% growth, while margins remained above 20%.

Segment-wise Performance

The company's diversified portfolio showed broad-based growth across segments. Formulations revenue grew 20% to INR 4.8 billion, while API revenue rose 2.9% to INR 3.6 billion during Q3 FY26. The management highlighted that this performance reflects participation across segments and geographies, with the merged entity operating as one integrated team.

Key segment developments included:

• Animal Health formulation expansion in Europe with direct field force in Spain and distribution agreements in Benelux and Sweden
• Strong performance in emerging markets, particularly Turkey and Brazil
• US formulation strategy shift toward complex products with backward integration for key products
• API business crossing INR 400 crores annually for the first time since 2022

One-time Expenses and Integration Costs

The quarter included exceptional items totaling approximately INR 48-49 crores related to merger execution. These comprised INR 41 crores in merger-related costs including stamp duty and advisor fees, plus INR 7.7 crores from tax regime conversion. Management emphasized these are purely one-time expenses with no recurrence expected.

Strategic Focus Areas

Dr. Hari Babu, Managing Director and Group CEO, outlined the company's strategic priorities centered on companion animal business and CDMO opportunities. The companion animal segment represents a significant growth opportunity, with genericization currently at only 15% compared to 85-90% in human health.

Growth initiatives include:

• Exclusive distribution agreement with Boehringer Ingelheim for companion animal products in India
• CDMO business targeting INR 70-90 crores in FY26 with expansion planned
• Geographic expansion in Europe leveraging Spain and Turkey manufacturing bases
• Infrastructure development for companion animal business in India

Integration Progress and Synergies

The merger integration has progressed significantly with legal and statutory actions completed in India. Key integration achievements include R&D consolidation, manufacturing network optimization, and corporate function integration. The company completed divestment of its Mangalore testing facility, expected to save approximately USD 1 million annually.

Management indicated that operational synergies of INR 50-60 crores are expected over 12-18 months, with most benefits materializing in FY27. The company maintains confidence in sustaining 20% EBITDA margins going forward, supported by its diversified four-segment structure.

Outlook and Financial Position

With net debt-to-EBITDA reducing to less than 4x and a significantly strengthened balance sheet, the company is positioned for both organic growth investments and selective acquisitions. Management expressed confidence in achieving previously guided targets of INR 4,000 crores revenue with 20% EBITDA margins, potentially ahead of the FY28 timeline.

The CDMO business is expected to accelerate growth over the next 3-4 years, while Animal Health APIs are projected to show substantial improvement in FY27 following infrastructure investments and process improvements implemented over recent quarters.

Source: Viyash Scientific Limited Q3 FY26 Earnings Conference Call