SeQuent Scientific Limited (ISIN: INE807F01027), India's largest pure-play animal health company, has reported robust financial results for the second quarter, along with a significant corporate development.

Financial Highlights

SeQuent Scientific delivered a strong performance in Q2:

• Revenue reached INR 4,240.00 million, marking a 15% year-on-year growth
• EBITDA stood at INR 657.00 million, with a margin of 15.5%
• Gross margin improved by 270 basis points year-on-year, rising from 47% to 49.7%

Business Segment Performance

The formulations business, accounting for about 75% of sales, showed strong growth across all geographies:

• Europe: 14% year-on-year growth
• Emerging markets: 27% year-on-year growth
• India: 6% year-on-year growth

Merger Approval

The National Company Law Tribunal (NCLT) has approved the merger between SeQuent Scientific and the Viyash Group of companies. This merger is expected to create synergies in R&D and manufacturing, potentially transforming the company's growth trajectory.

Strategic Initiatives

SeQuent Scientific has undertaken several strategic initiatives:

1. Expansion into Mexico, establishing a front-end presence in this large animal health market
2. Launch of Tulaject (tulathromycin injection) in Brazil, with plans to expand to other Latin American markets
3. Continued growth in Turkey, maintaining a position among the top 5 players in the ruminant animal market
4. Commercialization of a new API partnership with a launch in the U.S.
5. Successful completion of a U.S. FDA audit for the analytical lab, SeQuent Research Limited

Management Commentary

Rajaram Narayanan, Managing Director and CEO of SeQuent Scientific, stated, "We are now firmly on the path of crossing 15% EBITDA and moving to high teens while also improving our profit after tax substantially."

Dr. Hari Babu, Whole-Time Director and CEO of Viyash Life Sciences, added, "The combined entity expects significant synergies in R&D and manufacturing, with management confident of sustaining 20%+ EBITDA margins."

Future Outlook

The company is focusing on:

1. Expanding its product pipeline, especially in companion animal health
2. Leveraging R&D capabilities to become a more science-driven animal health company
3. Capitalizing on tightening regulations in less regulated markets
4. Exploring inorganic growth opportunities, particularly in companion animal health

With a strong balance sheet and improving free cash flow, SeQuent Scientific is well-positioned to pursue these growth initiatives.

The merger with Viyash Group and the strong Q2 performance indicate that SeQuent Scientific is poised for significant growth in the animal health sector, with a particular focus on expanding its presence in the companion animal segment and leveraging its R&D capabilities to drive innovation and market expansion.

Sequent Scientific Ltd (INE807F01027) has reported a stellar performance for the second quarter, showcasing significant growth across key financial metrics.

Financial Highlights

Key Takeaways

1. Revenue Growth: Sequent Scientific's revenue increased to ₹420.00 crore in Q2 FY2026, up from ₹370.00 crore in the same quarter last year, representing a solid 13.51% year-on-year growth.

2. Profitability Surge: The company's net profit witnessed a remarkable 465.38% jump, reaching ₹14.70 crore compared to ₹2.60 crore in the corresponding quarter of the previous fiscal year.

3. EBITDA Performance: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed substantial improvement, rising to ₹55.70 crore from ₹39.10 crore, marking a 42.46% increase year-on-year.

4. Margin Expansion: The EBITDA margin expanded significantly to 13.26% from 10.57% in the year-ago period, indicating improved operational efficiency.

The pharmaceutical company's robust performance in Q2 FY2026 demonstrates its strong market position and operational excellence. The substantial growth in net profit and EBITDA, coupled with margin expansion, suggests effective cost management and potentially improved product mix or pricing strategies.

Investors and market analysts may view this performance positively, as it indicates Sequent Scientific's ability to drive growth and profitability in a competitive pharmaceutical landscape. However, it's important to note that future performance may be subject to various factors including market conditions, regulatory environment, and global economic trends.

As per the latest LODR (Listing Obligations and Disclosure Requirements) data, Sequent Scientific has duly published the extract of its unaudited financial results for the quarter and half-year ended September 30, 2025, in compliance with SEBI regulations. This transparency in financial reporting aligns with good corporate governance practices and keeps investors informed about the company's performance.

Stakeholders are advised to review the detailed financial statements and management commentary for a comprehensive understanding of the company's performance and future outlook.