Viyash Scientific (512529) Q2 25/26 earnings summary

Executive summary

• NCLT approved the merger between SeQuent and Viyash, marking a new phase focused on transformation, growth, and synergy realization in R&D and manufacturing.

• Both companies reported record performances, with robust revenue and margin growth, driven by new product launches, improved product mix, and cost optimization.

• The combined entity is positioned for accelerated growth and new revenue streams, with a strong focus on animal health and companion animal segments.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025, were approved by the Board on November 14, 2025.

• The business operates as a single segment: Pharmaceuticals.

Financial highlights

• Combined Q2 FY26 revenue reached ₹8,521 million, up 16% year-on-year; EBITDA was ₹1,890 million, up 76% year-on-year, with a margin of 22.2%.

• H1 FY26 revenue was ₹16,462 million, up 12.5% year-on-year; EBITDA was ₹3,810 million, up 48% year-on-year, margin 19.3%.

• SeQuent Q2 FY26 revenue was ₹4,240 million, up 15% year-on-year; EBITDA up 47% to ₹657 million; PAT up 200% to ₹196 million.

• Viyash Q2 FY26 revenue was ₹4,281 million, up 18% year-on-year; EBITDA margin improved to 28.8%; PAT was ₹533 million versus a loss in Q2 FY25.

• Consolidated profit after tax for Q2 FY26 was ₹196 million, nearly tripling year-on-year; H1 FY26 profit after tax was ₹371.7 million, up from ₹154 million year-over-year.

Outlook and guidance

• Management expects double-digit growth in the formulations business, driven by new launches and expansion in companion animals.

• EBITDA margins are expected to sustain above 20% for the combined entity, with further improvement as synergies materialize.

• Gross margins are expected to remain at or above 50% in the near future.

• Viyash targets 20%+ CAGR in revenue over the next three years.

• Awaiting NCLT order for a major amalgamation scheme; no effect of merger reflected in current results.