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

Viyash Scientific Limited has released its comprehensive investor presentation for Q3FY26 to the stock exchanges, providing detailed insights into the company's performance following the completion of its merger. The presentation was submitted to BSE Limited and National Stock Exchange of India Limited on February 06, 2026, under Regulation 30 of SEBI Listing Regulations.

Q3FY26 Performance Highlights

The investor presentation reaffirmed the company's strong Q3FY26 performance, with consolidated revenue reaching ₹8,584 million, representing 10.9% year-on-year growth. The presentation highlighted significant EBITDA improvement of 64.4% to ₹1,854 million with margin expansion to 21.6% from 14.6% in the previous year.

Business Segment Performance

The presentation detailed broad-based revenue growth across all business segments. Formulations business reported ₹4,809 million in Q3FY26 compared to ₹4,009 million in Q3FY25, marking 20% growth. APIs segment generated ₹3,658 million versus ₹3,556 million in the previous year, representing 3% growth.

Merger Integration Progress

The presentation provided comprehensive updates on merger synergy realization across key areas. In R&D, the company has achieved full API R&D integration leading to accelerated development, with 4 new animal health products developed and validated. Manufacturing synergies include validation of 6 intermediates at Viyash sites that were previously procured externally.

Market Opportunity and Strategic Vision

The investor presentation outlined significant market opportunities in the animal health sector, particularly in companion animals where generic penetration remains below 15% compared to 91% in human health. The company highlighted the growing companion animal market expected to reach $32-35 billion by 2030 from $16 billion in 2020.

Manufacturing and R&D Capabilities

The presentation showcased the combined entity's manufacturing network of 10 facilities with global approvals across Andhra Pradesh and Maharashtra. The company's "One R&D" initiative features a 200+ member team including 20+ PhDs, with 20 fully equipped analytical laboratories and dedicated capabilities for handling cytotoxic and complex molecules.

Source: Viyash Scientific Limited investor presentation for Q3FY26