Viyash Scientific (512529) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered strong results with revenue from operations at INR 946 crore (₹9,463.6 million), up 20% year-over-year, and EBITDA at INR 205 crore (2,047 Mn), up 59% year-over-year, with margin expansion to 21.6%.

• Profit after tax more than doubled to INR 79 crore (₹792.9 million), and net debt reduced to INR 86 crore (861 Mn), making the company virtually debt-free.

• Integration of recent acquisitions and amalgamation of subsidiaries completed, positioning for further organic and inorganic growth.

• Acquisition of BioForLife in Italy strengthens presence in the companion animal segment and provides access to key European markets.

• Focus remains on disciplined execution, operational efficiency, and strategic investments for sustainable growth.

Financial highlights

• Revenue from operations grew 19.5% year-over-year and 2.9% sequentially, reaching ₹9,463.6 million.

• Adjusted EBITDA rose 59.2% year-over-year to INR 205 crore (2,047 Mn), with margin at 21.6% (up from 16.2%).

• Profit before tax increased 132% year-over-year to INR 112 crore (₹1,124.1 million); profit after tax up 115% to INR 79 crore (₹792.9 million).

• Gross margin improved to 55.1% in Q1 FY27 from 51.9% year-over-year.

• Finance cost declined to INR 12.5 crore, with leverage ratios improving due to lower debt.

Outlook and guidance

• API business expected to deliver its best quarter in Q2, with strong order inflow after temporary softness due to raw material price volatility.

• Animal Health API and formulation businesses are projected to grow over 20% annually, with overall API growth in the mid-teens.

• Human API growth expected at 13%-15% until 2029, with significant upside from first-to-file launches post-2029.

• Company targets $1 billion revenue by 2032, implying an 18% CAGR from FY 2027.

• Expansion into Vietnam and Italy to drive growth in animal health and companion animal segments.