Hikal Q4 FY25 Results: Revenue ₹552cr, EBITDA ₹123cr

Key takeaway from the May 14 earnings call

Hikal Limited (BSE: 524735) discussed its Q4 and FY25 performance in an earnings conference call held on May 14, 2025. The company reported a clear improvement in operating profitability during the March quarter, even as management acknowledged that business conditions across segments have been uneven. Q4 FY25 revenue came in at ₹552 crore and EBITDA was ₹123 crore. The company also flagged a sharp sequential improvement in EBITDA and a year-on-year expansion in margins. Alongside operational updates, the board recommended a final dividend, adding a capital-return angle to the results.

Q4 FY25: revenue steady, profitability improves

For Q4 FY25, Hikal reported revenue of ₹552 crore with EBITDA of ₹123 crore. The company said EBITDA grew 71% sequentially, reflecting a strong quarter-on-quarter recovery in operating performance. On a year-on-year basis, EBITDA increased 31%, and EBITDA margins improved by 410 basis points to 22.4% (the quarter’s margin was also cited as 22.3% in the same set of notes). Profit after tax (PAT) for Q4 FY25 was reported at ₹50.2 crore, up 48%.

Management commentary in the material also pointed to the role of product mix and operating leverage in supporting margins in the quarter. The update described stronger performance in Crop Protection as a key contributor, while Pharmaceuticals was described as subdued in parts even as CDMO traction remained important.

FY25: full-year revenue ₹1,860 crore, EBITDA margin 17.7%

For the full year FY25, Hikal reported revenue of ₹1,860 crore and EBITDA of ₹328 crore. The company said the EBITDA margin for FY25 was 17.7%, representing a 270 basis point increase compared to the previous year. This indicates that the improvement in Q4 profitability was not an isolated development, but part of a broader year-long shift in operating performance.

The company’s commentary also referenced stabilisation trends in the Crop Protection sector, suggesting that end-market conditions are gradually becoming more supportive after a period of correction.

Segment snapshot: Pharmaceuticals in Q4 and FY25

In Q4 FY25, the Pharmaceutical business reported revenue of ₹351 crore and EBIT of ₹55 crore. For FY25, Pharmaceutical revenue stood at ₹1,168 crore with EBIT of ₹137 crore. The company noted that Pharmaceutical EBIT grew 47% year-on-year.

Within pharma, the notes highlight that CDMO showed traction, while the legacy generics business was weak in at least one reference point. One part of the provided material also stated that pharma growth of 4% was driven by strong CDMO traction (around 21% growth), even as the legacy generics business de-grew 8%.

Segment snapshot: Crop Protection shows recovery signals

In Q4 FY25, the Crop Protection business reported revenue of ₹201 crore with EBIT of ₹36 crore. The company reported an EBIT margin of 18% for the segment in the quarter. Multiple parts of the provided commentary pointed to demand stabilisation and improved order inflows, with signs that end-customer volume recovery is translating into better order momentum.

The notes also describe the broader market context for Crop Protection as one that has worked through inventory correction and pricing pressure over the last few years. While volume traction and improving demand were cited, management also flagged that pricing concerns still remain.

Dividend: final dividend recommendation disclosed

The company said that the board of directors recommended a final dividend of ₹0.88 per share (40%). The notes also referenced an interim dividend of 30% declared in February 2024. The material does not clearly specify the total dividend amount for FY25 beyond stating that the total dividend “stands” following these declarations.

How the current quarter compares with earlier years

Hikal’s recent performance has followed a volatile path across years, with profitability swinging as sector conditions changed. In Q4 FY24, the company reported revenue of ₹514 crore and EBITDA of ₹94 crore, with an EBITDA margin of 18.4% (up 220 basis points). In Q4 FY23, the company reported revenue of ₹545 crore and EBITDA of ₹90 crore, with an EBITDA margin of 16.5%.

The segment profile also shows how crop profitability can shift sharply. In Q4 FY24, Crop Protection revenue was ₹177 crore and EBIT was ₹14 crore (7.7% margin). In Q4 FY23, Crop Protection revenue was ₹236 crore, with a 22% year-on-year growth noted for the segment during that quarter.

Summary table: reported quarterly performance

Market impact and what investors track next

The reported margin expansion in Q4 FY25, alongside FY25’s higher full-year EBITDA margin, highlights how sensitive earnings are to business mix and operating leverage in this industry. For investors, the key monitorables remain the sustainability of segment recovery, especially in Crop Protection where pricing pressure has been cited even as volumes improve.

In Pharmaceuticals, investors will likely track how the mix between CDMO and legacy generics evolves, given the notes indicating divergent trends within the segment. The company’s dividend recommendation adds a shareholder-return component, but the more material driver remains whether the stronger profitability profile persists into the next financial year.

Conclusion

Hikal’s Q4 FY25 results showed higher profitability with revenue at ₹552 crore and EBITDA at ₹123 crore, supported by margin expansion to about 22.4%. FY25 revenue was ₹1,860 crore with EBITDA of ₹328 crore, indicating a broader improvement across the year. Crop Protection posted ₹201 crore of revenue and an 18% EBIT margin in Q4 FY25, while Pharmaceuticals delivered ₹351 crore of revenue and ₹55 crore of EBIT in the quarter. The next set of updates will be closely watched for confirmation on demand stability, pricing trends in Crop Protection, and the pace of recovery across pharma sub-segments.