Viyash Scientific Limited reported robust Q3 FY’26 results, marking the first quarter for the merged entity. Revenue grew 11% YoY to INR 858 crores, with Adjusted EBITDA surging 64% YoY to INR 185 crores, resulting in a 21.6% margin. Management highlighted sustained margin performance, strong balance sheet strengthening, and clear growth strategies focused on Companion Animals and CDMO expansion across both Animal Health and Human Health segments.
Viyash Scientific Reports Milestone Q3 FY’26 Performance
Viyash Scientific Limited (formerly Sequent Scientific Limited) announced its financial results for the third quarter and nine months ended December 31, 2025, emphasizing the strong operational integration of the merged entity. Dr. Hari Babu noted this is the first discussion of quarterly results for the combined company, reflecting one integrated platform and steady progress in growth, profitability, and balance sheet strength.
Q3 FY’26 Financial Highlights
The company demonstrated significant improvement across key metrics:
- Revenue from Operations (Q3 FY’26): INR 858 crores, marking an 11% year-on-year growth.
- Adjusted EBITDA (Q3 FY’26): INR 185 crores, surging 64% year-over-year.
- EBITDA Margin: Expanded by 390 basis points to 21% for the quarter.
- Net Debt-to-EBITDA: Reduced to less than 4x, indicating balance sheet strengthening.
Nine-Month Performance Consistency
The momentum carried through the nine-month period:
- Revenue (9M FY’26): INR 2,500 crores (12% YoY growth).
- Adjusted EBITDA (9M FY’26): Over INR 500 crores (58% YoY growth), maintaining a margin above 20%.
Management clarified that the quarter included one-time exceptional items totaling approximately INR 48-49 crores, related to merger execution costs (including stamp duty and advisor fees) and a tax regime change impact.
Strategic Growth Pillars
Dr. Hari Babu structured the outlook around three core areas for compounded momentum:
1. Companion Animal Health
This is identified as the most attractive long-term opportunity, supported by increasing pet ownership and high genericization runway (only 15% genericization compared to 85-90% in human health). The company is expanding its direct field force in markets like Spain, Benelux, and Sweden, and has signed an exclusive distribution agreement with Boehringer Ingelheim in India.
2. Emerging Markets and Formulations
Turkey and Brazil remain key markets, with expansions planned into Mexico and Southeast Asia leveraging existing GMP facilities. In India, the focus is on growing the farm animal segment. For US formulation (Human Health), the strategy shifted to focus on complex products where the company is fully backward integrated for 45% of volume products.
3. API and CDMO Expansion
The API business showed strength, with API revenue for the nine months reaching INR 11 billion. The company is prioritizing CDMO opportunities, leveraging its strong R&D platform (over 200 scientists) and specialized capabilities. Current CDMO business, which is a mix of innovator collaboration and formal CDMO contracts, is expected to generate INR 70 crores to INR 90 crores this fiscal year, with substantial growth anticipated after 2-3 years as new products move to commercialization.
Integration Status Update
Key integration milestones achieved:
- Legal & Regulatory: All Indian statutory actions completed; integrating with external regulatory bodies is the next step.
- R&D: Fully integrated into one platform, developing new products like 4 new Animal Health products validated in the last 12 months.
- Manufacturing: Network optimization underway; successfully segregated Human Health and Animal Health production lines for the Albendazole product, completing regulatory filing for the new Viyash site.
- Corporate Functions: Fully integrated, including the strategic divestment of the Mangalore site, which is expected to yield savings of at least $1 million next year.
Management expressed confidence in maintaining a long-term target of 15%-20% EBITDA growth, aiming to become one of the top 10 Animal Health companies.
Source: BSE
