Hikal Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, reporting a net loss amid challenging market conditions. The company has now officially confirmed the record date for interim dividend payment following regulatory compliance requirements.

Financial Performance Overview

The company reported mixed financial performance with revenue growth but profitability challenges during the quarter.

For the nine months period, the company faced revenue decline with total revenue from operations at ₹11,932 million compared to ₹13,074 million in the previous year, representing a decrease of 8.7%.

Segment-wise Performance

Both business segments showed mixed results during the quarter:

The pharmaceuticals segment showed stronger growth momentum despite facing regulatory challenges, while the crop protection segment maintained steady performance.

Official Record Date Confirmation

Following the board meeting held on February 11, 2026, Hikal Limited has formally communicated the record date details to stock exchanges under Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company has notified Central Depository Services (India) Limited, National Securities Depository Limited, and registrar MUFG Intime India Private Limited regarding the record date fixation.

Dividend Declaration Details

The Board of Directors had earlier declared an interim dividend for shareholders:

Regulatory Compliance and Trading Window

The formal intimation was signed by Company Secretary & Compliance Officer Rajasekhar Reddy, ensuring compliance with regulatory requirements. The trading window for designated persons will reopen on February 14, 2026, following the closure since January 1, 2026.

Hikal Limited has disclosed significant irregularities in revenue recognition that have impacted its financial results across three quarters, following a comprehensive fact-finding review that uncovered employee misconduct involving document alterations.

Nature of Irregularities

The pharmaceutical and crop protection company identified suspected misconduct by certain employees involving irregularities and alteration of documents relating to revenue recognition. The irregularities were discovered during a fact-finding review and are being treated as misconduct by the company.

Financial Impact Assessment

The company has quantified the impact of these irregularities across the affected quarters, with the most significant adjustment being a revenue reversal of ₹80.70 crore in Q2FY26.

The impact primarily relates to revenue recognition timing, including potential reversals and adjustments to revenue recorded in the relevant periods. These adjustments have consequential impacts on quarterly financial results and related financial statement line items.

Company's Position and Clarifications

Hikal Limited has provided important clarifications regarding the nature of the irregularities and their impact on the company's operations. The company emphasized that despite the irregularities, all recognized transactions are legitimate and backed by proper documentation.

Key clarifications include:

• All underlying sales transactions are genuine and supported by customer purchase orders
• No siphoning, embezzlement, or misappropriation of company funds has occurred
• The irregularities relate specifically to timing of revenue recognition rather than fictitious sales
• The company has already taken corrective action by reversing ₹80.70 crore in Q2FY26

Regulatory Compliance and Next Steps

The company is currently evaluating applicable reporting requirements and will take appropriate steps to report the matter to relevant authorities as required under applicable laws and regulations, subject to legal advice. This disclosure has been made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Hikal stated it is assessing its statutory obligations and preparing to notify authorities where required, demonstrating the company's commitment to regulatory compliance and transparency in addressing the internal control issues.

The company has confirmed that all underlying sales are genuine, despite the revenue recognition irregularities affecting Q4FY25, Q1FY26, and Q2FY26. The most significant impact was a revenue reversal of ₹80.70 crore in Q2FY26, which has already been implemented by the company.