Hikal Limited’s Board of Directors approved the unaudited financial results for the quarter and nine months ended December 31, 2025. The Board declared an Interim Dividend of ₹0.20 per equity share (10%) for FY 2025-26. The Record Date is set for February 17, 2026. The review reports noted modified conclusions regarding outstanding investigations and revenue recognition reviews, but concluded that the financial statements are largely presented fairly based on available information.
Board Meeting Outcomes and Financial Results
Hikal Limited announced the outcome of its Board Meeting held on February 11, 2026. The primary agenda included the consideration and approval of the unaudited financial results for both standalone and consolidated entities for the quarter and nine months ended December 31, 2025.
The unaudited financial results, along with the modified Limited Review report from the Statutory Auditors, have been submitted to the stock exchanges.
Interim Dividend Declaration
The Board approved an Interim Dividend for the financial year 2025-26 at a rate of 10% (₹0.20 per equity share, based on a nominal value of ₹2/- each).
- Record Date: Tuesday, February 17, 2026, to determine eligible shareholders.
- Payment Date: On or before Thursday, March 12, 2026.
Trading Window Update
The trading window for Designated Persons, previously closed effective January 1, 2026, will re-open on February 14, 2026. However, the special closure related to Directors, KMPs, and specified senior management personnel (intimated earlier) will remain closed until further notice.
Standalone Financial Highlights (Q3 FY2025-26 vs. Q3 FY2024-25)
Focusing on the standalone figures for the quarter ended December 31, 2025:
- Total Income: Increased to ₹4,971 Million from ₹4,513 Million in the previous year’s corresponding quarter.
- Profit/(Loss) Before Tax (after exceptional item): Reported a loss of (₹92 Million), compared to a profit of ₹239 Million in Q3 FY2024-25. This was significantly impacted by an Exceptional item of (₹380 Million).
- Earnings Per Share (Basic/Diluted): Calculated at (₹0.48), compared to ₹1.40 in the prior year quarter.
Segment Performance Overview (Standalone – Nine Months Ended Dec 31, 2025)
For the nine-month period, revenue from operations stood at ₹11,932 Million. Segment results before tax (before exceptional item) showed:
- Pharmaceuticals Segment Result: A positive contribution of ₹104 Million.
- Crop Protection Segment Result: A negative contribution of (₹486 Million) due to costs.
Auditor’s Review and Caveats
The Independent Auditor’s Review Report on the Standalone results expressed a modified review conclusion. This modification pertains to the ongoing review concerning irregularities in revenue recognition noted as of September 30, 2025, pending final outcomes.
Furthermore, the auditors drew attention to an ongoing uncertainty regarding investigations related to alleged non-compliance with environmental laws, which is currently pending before the Hon’ble Supreme Court of India. No adjustments were made to the results for this matter.
Consolidated Financial Overview (Q3 FY2025-26 vs. Q3 FY2024-25)
The consolidated performance for the quarter showed a net comprehensive loss:
- Total Comprehensive Income/(Loss): Reported a loss of (₹59 Million), compared to a gain of ₹171 Million in Q3 FY2024-25.
- The loss was primarily driven by the consolidated Exceptional Item of (₹380 Million).
Note on Exceptional Items (Consolidated & Standalone)
The significant exceptional item relates to the incremental financial impact assessment arising from the Government of India notifying four new Labour Codes in November 2025. This impact includes estimated charges for gratuity and long-term compensated absences totaling ₹202 Million, plus an additional ₹178 Million arising from a policy change regarding gratuity payment ceilings.
Operational Context
Note 7 mentions that sales for the Pharma Segment were impacted during the period due to customers deferring purchases following the USFDA issuing a warning letter in August 2025 concerning the Jigani facility.
Source: BSE
