Viyash Scientific (512529) Q4 25/26 earnings summary

Executive summary

• FY 2026 was transformative, marked by the successful integration of business operations, facilities, and corporate functions, driving record Q4 performance and meaningful merger synergies.

• Enhanced execution, operating leverage, and resilience were achieved through disciplined asset utilization, cost controls, and agile pricing amid geopolitical and maritime disruptions.

• The company is pursuing both organic and selective inorganic growth, supported by a robust product pipeline, infrastructure investments, and a significantly deleveraged balance sheet.

• Audited standalone and consolidated financial results for FY26 were approved, reflecting the impact of a major amalgamation effective April 1, 2025.

• The company adopted a new set of Articles of Association and approved a significant employee stock option scheme (ESOP 2026) covering 1,30,98,000 options.

Financial highlights

• Q4 FY26 revenue grew 19.1% year-over-year to ₹9,200 Mn; full-year FY26 revenue was ₹34,203.1 Mn, up 13.8% year-over-year.

• Q4 gross margin improved to 55.1%; adjusted EBITDA up 63.8% to ₹2,001 Mn, margin at 21.7%. FY26 adjusted EBITDA was ₹7,025 Mn, margin at 20.5%.

• Q4 profit before tax swung from a loss of ₹370 Mn to a profit of ₹1,250 Mn; Q4 earnings after tax were ₹664 Mn, up 305.5% YoY.

• FY26 net profit after tax was ₹2,246.5 Mn, compared to ₹157.7 Mn in FY25 (restated); consolidated basic EPS for FY26 was ₹4.09.

• Net debt reduced to ₹1,661 Mn (0.2x LTM EBITDA) from ₹4,511 Mn (1.0x) in FY25; cash and cash equivalents at year-end stood at ₹2,557.6 Mn.

Outlook and guidance

• FY27 priorities include strengthening merger synergies, operational performance, efficient capital allocation, debt reduction, and maximizing cash flow.

• Management targets a 15% annual growth rate over the next five years, with EBITDA targets of ₹10,000 Mn in the next 2–3 years.

• Gross margins are expected to be maintained at current levels, with potential for slight improvement as the business mix evolves.

• Tax rate guidance for FY27 and FY28 is around 26%-27%.

• No explicit forward-looking financial guidance was provided.