Viyash Scientific (512529) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw double-digit revenue growth of 13.1% year-on-year, reaching INR 4,414 million, with strong margin expansion and a 25% increase in pre-ESOP EBITDA to INR 602 million at a 13.6% margin.

• The business is transitioning from consolidation to accelerated growth, supported by operational improvements and the upcoming merger with Viyash Life Sciences.

• Both Sequent and Viyash delivered robust performance, with Viyash posting 44% revenue growth and 19% EBITDA growth year-on-year, and combined EBITDA up 41% year-on-year.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, were approved by the Board on August 8, 2025.

• The Sequent 3.0 roadmap has commenced to leverage merger synergies and accelerate profitable revenue growth.

Financial highlights

• Q1 FY26 consolidated revenue rose 13.1% year-over-year to ₹4,414 million.

• Adjusted EBITDA increased 24.7% year-over-year to ₹602 million, with margin up 126 bps to 13.6%.

• Profit after tax rose 93.7% year-on-year and 69.7% sequentially to INR 176 million.

• Gross margin improved by 180 bps year-on-year to 46.9%.

• Combined Sequent and Viyash Q1 FY26 revenue reached ₹7,941 million, with EBITDA margin at 16.2%.

Outlook and guidance

• Management expects continued double-digit growth across geographies, with India and emerging markets prioritized for expansion.

• Gross margin for Sequent targeted to move toward 50%, with Viyash already above this level; merger synergies expected to further improve margins.

• PAT growth is expected to outpace EBITDA growth, with Sequent aiming for mid-teens EBITDA margins and Viyash for high teens.

• The merger process is on track, with completion expected within 12-15 months from the September 2024 announcement.

• No effect of the proposed amalgamation scheme has been given in the current quarter's results pending regulatory approvals.