Mumbai, Aug 7 Life sciences company Hikal Limited on Thursday reported a net loss of Rs 22.4 crore for the quarter ended June 30 (Q1 FY26) -- marking a sharp reversal from a net profit of Rs 5.1 crore in the same period previous year (Q1 FY25).
The Mumbai-based company’s revenue from operations dropped by 6.5 per cent to Rs 380.4 crore, down from Rs 406.8 crore in Q1 FY25, according to its stock exchange.
On a sequential basis, revenue also fell from Rs 552.4 crore reported in the previous quarter (Q4 FY25).
Total income for the quarter stood at Rs 381.4 crore, compared to Rs 407.3 crore a year ago and Rs 552.9 crore in the March 2025 quarter.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also declined significantly to Rs 251 million, compared to Rs 580 million in the same quarter previous year.
As a result, the EBITDA margin shrank to 6.6 per cent from 14.26 per cent year-on-year (YoY), the company said in its regulatory filing.
The company's expenses remained high at Rs 411.8 crore, driven by increased raw material costs, which stood at Rs 182 crore.
Employee costs amounted to Rs 62.9 crore, while other expenses were reported at Rs 105.6 crore.
Hikal posted a pre-tax loss of Rs 30.4 crore in the quarter, compared to a profit of Rs 6.9 crore in Q1 FY25 and Rs 68.3 crore in the preceding quarter.
A tax reversal of Rs 8 crore provided some relief but was not enough to prevent the company from slipping into the red.
Following the earnings announcement, shares of Hikal Limited were trading lower on the National Stock Exchange (NSE), down 5.56 per cent or Rs 17.1, at Rs 290.2 per share.
Established in 1988, the company specialises in providing solutions across the pharmaceutical, animal health, biotech, crop protection, and specialty chemicals industries.
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