Sequent Scientific: Post-Merger Roadmap & Strategic Guidance

Event Update Sequent Scientific has successfully received NCLT approval for its merger with Viyash Lifesciences. Following this development, the management, led by Group CEO Hari Babu, has unveiled a comprehensive strategic roadmap aimed at consolidating leadership in the Animal Health sector while leveraging Viyash’s capabilities in Human Health. Financial Guidance (FY27) Revenue Target: The combined entity projects a topline of ₹4,000 crore by FY27. Profitability: Management has guided for EBITDA margins to exceed 20%, driven by operational efficiencies and an improved product mix. Balance Sheet: The merged entity maintains a healthy leverage profile with a Net Debt-to-EBITDA ratio of 0.7x. As Viyash is nearly debt-free, the combined operating cash flows are expected to further accelerate deleveraging. Operational Synergies & Business Mix The merger creates a balanced revenue structure, mitigating segment concentration risk. Revenue Split: The combined entity will operate with a balanced 50:50 mix between APIs and Formulations. Complementary Strengths: Sequent: Dominance in Animal Health (65–70% Formulations). Viyash: Strength in Human Health (65% APIs), US Formulations, and emerging CDMO capabilities. Margin Profile: While Sequent’s margins have shown steady improvement over the last four quarters, Viyash’s Human Health portfolio currently contributes superior margins, enhancing the consolidated margin profile. Strategic Outlook Primary Focus: The core objective for the next five years is to establish the entity as a leading global player in Animal Health, with a specific focus on the high-growth pet care segment. Growth Phases: Near Term (1–3 Years): Steady, concurrent growth in both APIs and Formulations. Medium Term (Year 4+): Acceleration in Formulation revenue. Long Term (FY28 Onwards): Projected revival and expansion in the API cycle.