Viyash Scientific (512529) Q3 25/26 earnings summary

Executive summary

• First quarterly results post-merger of Sequent and Viyash, reflecting integration, operational synergy, and strong momentum across business units.

• Robust revenue, margin, and profitability growth driven by new product launches, cost improvements, and synergy realization.

• Enhanced R&D, manufacturing, and front-end capabilities leveraged for future growth.

• Board approved a new ESOP scheme (VSL ESOP Scheme 2026) and changes in senior management following post-merger review.

• Amalgamation of multiple entities completed, with financials restated to reflect the merger from April 1, 2024.

Financial highlights

• Q3 FY26 consolidated revenue: ₹8,584 million, up 11% year-on-year; nine-month revenue: ₹25,004 million, up 12%.

• Adjusted EBITDA for Q3: ₹1,854 million, up 64% year-on-year; margin expanded to 21.6%.

• Gross margin improved to 54.5% in Q3, up from 51.3% year-on-year.

• Profit before tax for Q3: ₹731 million after one-time merger expenses; PAT: ₹485.2 million.

• Net debt to EBITDA reduced to 0.4x, significantly improved from 1.2x a year ago.

Outlook and guidance

• Confident in sustaining 20%+ EBITDA margin; synergies from merger expected to further improve margins in FY27.

• Guidance reaffirmed for ₹40 billion revenue and 20% EBITDA margin by FY28, with potential to achieve earlier.

• CDMO segment expected to outpace overall growth, with major contributions anticipated in 2-3 years.

• Focus on organic and inorganic growth, especially in companion animal health and CDMO.

• Ongoing assessment of regulatory and labour changes and their financial implications.