NSE: HIKAL · BSE: 524735 · ISIN INE475B01022
Hikal Limited stock analysis
Hikal Limited ranks #2958 in the TickerSutra evidence-ranked universe with a score of 43/100 and 95% data confidence. The latest captured fundamentals show ROCE of 3.5%, quarterly sales growth of 5.9% and quarterly profit growth of 27.2%.Avoid / exit review
INVESTMENT EVIDENCE
What supports—and challenges—the thesis
Evidence in favour
- Strong CFO/EBITDA of 1.37×
- CWIP indicates an active capacity pipeline
- No promoter shares are reported as pledged
Risks and constraints
- Debt/equity is above 0.5×
- Operating margin has compressed materially
- Valuation is above 40× earnings
Still unresolved: Related-party exposure · Broad media sentiment
FINANCIAL TRAJECTORY
Recent operating history
| Period | Revenue | Operating profit | Net profit | Operating margin |
|---|---|---|---|---|
| 2022 | ₹1,943cr | ₹341cr | ₹160cr | 18.0% |
| 2023 | ₹2,023cr | ₹258cr | ₹78cr | 13.0% |
| 2024 | ₹1,785cr | ₹267cr | ₹70cr | 15.0% |
| 2025 | ₹1,860cr | ₹328cr | ₹91cr | 18.0% |
| 2026 | ₹1,713cr | ₹220cr | ₹-49cr | 13.0% |
| TTM | ₹1,735cr | ₹232cr | ₹-34cr | 13.0% |
EXCHANGE EVENT TRIGGERS
Latest corporate disclosures
Hikal Limited has informed the Exchange about General Updates
RoutineHikal Ltd - 524735 - Disclosure Under Regulation 30 Of SEBI (LODR), 2015 - ESG RatingBSE · 29 Sept 2026Intimation of Disclosure under Regulation 30 of The Securities Exchange Board of India ( Listing Obligations and Disclosure Requirements) Regulations, 2015 - ESG Rating
RoutineTrading Window-XBRLBSE · 28 Sept 2026Hikal Limited has informed the Exchange about Closure of Trading Window
Positive CatalystPress ReleaseBSE · 22 Sept 2026Hikal Limited has informed the Exchange regarding a press release dated September 22, 2026, titled "Press Release- Hikal ventures into Personal Care : New cGMP Panoli facility begins Commercial Production.".
MANAGEMENT COMMENTARY
Signals from filed documents
We did witness in the existing pipeline healthy volume growth across the API and the intermediate segment. We continue to strengthen our customer partnership across several innovators, supported by differentiated manufacturing and regulatory capabilities. We have had some repeat NCE campaign suppliers for a leading innovator which are currently underway and which reflect cont inued customer confidence in our executio
This will enhance our ability to support both our existing customers, as well as our new customers with their new product commercial pipeline. Given the specialized nature of this business and our differentiated manufacturing capabilities, Animal Health represents one of the higher margin growth platforms within our portfolio. Overall, it remains a strategic growth pillar of Hikal, supported by strong customer partne
So, I mean, I have given an overall guidance for this year’s growth, right? I think that will get accelerated even more in FY28 over this year because we expect, once the remediation happens, we have some filings that are pending approval for want of the FDA approval. Once that approval comes, those filings will be done and that will have a ramp up in revenues in the next financial year in FY28.
However, margins remained under pressure due to elevated raw material and fuel costs arising from geopolitical developments in the Middle East, along with continued pricing pressure from China. In our CDMO business, export demand remained subdued, with certain customer orders deferred to subsequent quarters owing to inventory build-up at the customer end. The broader agrochemical industry continues to recover grad ua
So, the recovery in ordering is steady but cautious. Pricing, however, continues to remain under pressure due to excess supply from China limiting opportunities for price increases despite improving demand. Additionally, the margins are impacted due to geopolitical tens ions leading to increase in raw materials and energy costs.
Operationally, we remain focused on improving efficiencies and strengthening our manufacturing capabilities. During the quarter, we expanded existing product lines, established in-house liquid formulation capabilities, and continued initiatives around automation, backward integration, solvent recovery, yield improvement, and maximizing asset utilization to enhance cost competitiveness. Hikal Limited August 06, 2026 P
On the commercial front, we have strengthened our global business development capabilities by adding four dedicated business development professionals across Japan, North America and Europe, which will help expand our CDMO opportunity pipeline and deepen customer engagement in key markets. Overall, we remain confident that our differentiated product portfolio, expanding CDMO pipeline, strengthening technology capabil
We have been continuously dialoguing with the U.S. FDA over the last year since we got the warning letter in August 2025 and our remediation program is on track. We expect a re-inspection towards the end of this financial year.
On the commercial front, we have strengthened our global business development capabilities by adding four dedicated business development professionals across Japan, North America and Europe, which will help expand our CDMO opportunity pipeline and deepen customer engagement in key markets. Overall, we remain confident that our differentiated product portfolio, expanding CDMO pipeline, strengthening technology capabil
Overall, we expect a gradual volume rate recovery this year. On the Personal Care segment which I spoke about in the last conference call, we have recently commissioned a dedicated multi-purpose manufacturing line at Panoli with commercial production having recently commenced. Revenue is expected by the end of this year.
Our own product segment delivered sequential growth, supported by improving domestic demand and higher sales volumes. However, margins remained under pressure due to elevated raw material and fuel costs arising from geopolitical developments in the Middle East, along with continued pricing pressure from China. In our CDMO business, export demand remained subdued, with certain customer orders deferred to subsequent qu
We expect Q2 to be better than Q1, supported by the Indian Kharif season, with further improvement in Q3 driven by the Rabi season and Latin American demand. While margins may remain under pressure in the ne ar term due to raw material co sts and Chinese competition, we expect gradual improvement as volumes recover and operating leverage strengthens. Overall, we continue to view FY27 as a recovery year for the Crop P
MANAGEMENT PROMISE LEDGER
Quantified statements on the clock
“And one last question, just in terms of overall growth, which we are looking at in FY28 and beyond that, let’s say for FY29, probably what kind of overall margin profile and top line we would be looking at, if at all you can guide us? Sameer Hiremath: We expect this 15% to 16% CAGR to continue going forward and the base will keep getting bigger, but we are expecting 15% to 16% CAGR every year and that’ll bring in a l”
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Evidence, freshness and limitations
What does the TickerSutra score mean?
The score ranks captured evidence across financial quality, growth, moat and margins, regulatory catalysts, governance, institutional trend and valuation comfort. It is a research-prioritization tool—not a buy recommendation or price target.
Which sources support this page?
Financial history, ownership and pledge data, NSE and BSE filings, annual reports and available earnings-call transcripts are combined here. Use the source trail and original exchange document before relying on a decision-critical fact.
Why can an item be unresolved?
Unresolved means the current captured source window did not provide enough evidence for that check. It does not establish that a risk or relationship is absent.
Maintained by TickerSutra Research · Snapshot updated 29 Sept 2026 · Read the methodology · Read the disclaimer
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