Hikal is showing signs of a gradual recovery

Hikal is showing signs of a gradual recovery, but the turnaround is still incomplete. In Q1 FY27, consolidated revenue increased 5.9% YoY to ₹402.8 crore, while EBITDA rose sharply 49% to ₹36.6 crore, with EBITDA margin improving to around 9% from 6.5%. However, the company still reported a net loss of ₹7.4 crore, although this was significantly lower than the ₹22.4 crore loss in Q1 FY26. The key positive is the Pharmaceutical segment, where revenue grew 15.2% to ₹233 crore, supported by better customer offtake, differentiated APIs and CDMO opportunities. Hikal is also increasing its DMF filing pace and has commissioned a new cGMP pilot plant in Pune. On the other hand, the Crop Protection business remains under pressure because of customer inventory adjustments, pricing pressure and higher input costs, particularly due to geopolitical disruptions.