Viyash Scientific (512529) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 began strongly, driven by transformation initiatives, improved product mix, operational efficiencies, and increased R&D investment, resulting in consolidated revenue of INR 3,902 million, up 17.1% year-over-year.

• EBITDA (pre-ESOP) reached INR 483 million, the highest in three years, with a margin of 12.4% and a target to reach high teens in three years.

• Consolidated net profit after tax was INR 90.6 million, a turnaround from a net loss in the previous year.

• Strategic focus on product mix, new launches, R&D, and talent investment is driving sustainable growth and positioning for accelerated growth and margin improvement.

• Ongoing evaluation of strategic partnerships and inorganic opportunities in formulations and APIs.

Financial highlights

• Consolidated revenue for Q1 FY2025 was INR 3,902 million, up 17.1% year-over-year and 8% sequentially.

• EBITDA (pre-ESOP) was INR 483 million, up 126% year-over-year, with a margin of 12.4%; excluding a one-off claim, EBITDA would have been INR 569 million.

• PAT was INR 91 million, up 418.6% year-over-year.

• Gross margin improved to 45.1% from 41.5% year-over-year.

• Operating expenses reduced by 1.1% year-over-year despite inflationary pressures.

Outlook and guidance

• Targeting mid-teen EBITDA margins by year-end, with early double-digit revenue growth over a two to three-year horizon.

• Guidance maintained for low double-digit top-line growth and margin expansion, with some seasonality expected.

• India formulation business expected to accelerate over the next 12–18 months as team expansion and new product launches take effect.

• Focus on network optimization, cost reduction, and process improvements.

• Continued investment in R&D and talent to support sustainable growth.