Sequent EBITDA margin guidance: Mid-teens for FY26
Management guided mid-teens EBITDA margins for Sequent standalone for FY26, with intent to reach higher side as year progresses with operating leverage.
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Vash EBITDA margin guidance: 20%+ medium-term
Vash Life Sciences targets 20%+ EBITDA margins medium-term; current 19.5% margins already in line with this aspiration.
Gross margin trajectory: Toward 50%
Sequent guiding gross margin from current ~48-49% toward 50% level over next few quarters through product mix improvement and cost initiatives.
PAT growth to outpace EBITDA growth
Management expects PAT growth to be well ahead of EBITDA growth for both companies going forward, indicating operating leverage and tax efficiency benefits.
Target 20%+ EBITDA margins for combined entity
Management confirmed minimum 20% EBITDA margin sustainability going forward, with Q2 combined margins already at 22%. The 20% target previously set for FY27 is now achievable sooner.
Sequent formulations to sustain double-digit growth
Formulations business (75% of sales) expected to continue delivering double-digit growth driven by new launches, market expansion in emerging markets, and companion animal segment entry.
India formulations acceleration in H2
India formulations grew 6% YoY in Q2; management expects field force expansion impact to kick in during second half, driving improved performance.
Rs 60 crore capex for FY26; limited capex needed in FY27
Vash capex run-rate of Rs 60 crore in FY26 with no major capex expected in next two years unless pursuing inorganic opportunities (up to Rs 150 crore). Combined entity on track to be debt-free by FY27.