Home / Business and Economy / Hikal Profit Plummets 71% Amidst Regulatory Woes
Hikal Profit Plummets 71% Amidst Regulatory Woes
27 May
Summary
- Q4 profit dropped 71.3% year-on-year to ₹14.4 crore.
- Revenue declined 6% to ₹519.4 crore in the March quarter.
- One-time adjustments of ₹85.1 crore impacted annual profitability.
Hikal's financial results for the March quarter showed a substantial year-on-year decrease, with net profit falling 71.3% to ₹14.4 crore. Revenue also saw a 6% decline, reaching ₹519.4 crore. This performance was impacted by regulatory challenges and significant one-time accounting adjustments.
These adjustments included an ₹85.1 crore charge, comprising a ₹47.1 crore impairment for repurposing a manufacturing plant and ₹38 crore for revised employee benefit provisions due to new labor codes. Despite these factors, the company noted a sequential improvement in profit after tax compared to the previous quarter.
The crop protection business emerged as a strong performer, with revenue increasing to ₹227.8 crore. However, the pharmaceuticals segment's performance was affected by a USFDA warning letter issued in August 2025 for its Jigani facility.
Looking ahead, the board recommended a final dividend of 20%, bringing the total for FY26 to 30%. Hikal operates in pharmaceuticals, crop protection, and specialty chemicals, offering services from R&D to commercial manufacturing.
