Hikal Q2 FY27 Results (NSE: HIKAL)
Signal: Loss narrowed
The read
The key inflection is Pharma's return to profitability: consolidated revenue rose 36.3% YoY to 4,342 million and approximate EBITDA margin expanded to 10.3% from 2.3%, but 417 million of depreciation, 134 million of finance cost and the continuing USFDA Jigani overhang kept PAT negative at 61 million. This follows the prior quarter's recovery but remains below the 16.1% OPM achieved in Q3FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹434.2 Cr | +36.3% | +7.8% |
| EBIT | ₹3.2 Cr | Improved from loss to profit | |
| Net profit | ₹-6.1 Cr | +82.5% | |
| EPS | ₹-0.49 | +82.7% | |
| EBIT margin | 10.3% |
P&L walk
Revenue accelerated to 4,342 million, up 36.3% YoY and 7.8% QoQ; lower raw-material intensity and employee-cost intensity lifted EBITDA to approximately 449 million, but depreciation of 417 million and finance costs of 134 million left EBIT at approximately 32 million and the group still reported a 61 million loss.
Segments
Pharmaceuticals drove the recovery, with revenue up 46.6% YoY to 2,778 million and segment result turning positive at 128 million from a 175 million loss; Crop Protection revenue rose 21.2% to 1,564 million but remained loss-making at 23 million.
Key positives
- Consolidated revenue reached 4,342 million, up 36.3% YoY and 7.8% QoQ, with Pharmaceuticals contributing 2,778 million and growing 46.6% YoY.
- Pharmaceuticals segment result turned positive at 128 million from a 175 million loss a year earlier, the clearest operating recovery in the filing.
- Approximate EBITDA margin expanded to 10.3% from 2.3% a year earlier as raw-material intensity fell to 54.5% of revenue from 68.7% and employee-cost intensity fell to 14.7% from 21.9%.
- Finance costs declined 10.1% YoY to 134 million, while net debt decreased to approximately 6,172 million from approximately 6,710 million at 31 March 2026.
Key concerns
- PAT remained negative at 61 million despite 36.3% revenue growth because depreciation was 417 million and finance costs were 134 million.
- Crop Protection and speciality ingredients remained loss-making at 23 million, despite revenue growth of 21.2% YoY to 1,564 million.
- The filing states that the USFDA warning letter relating to the Jigani facility continued to impact Pharma sales.
- Operating cash flow declined to 1,668 million in H1FY27 from 1,927 million, while inventory rose to 4,239 million from 3,581 million.
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