SEQUENTSCIENTIFIC Q1 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹441.4 Cr
verification pending
Revenue YoY
13.1%
reported change
EBITDA
₹60.2 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
SeQuent Scientific delivered a strong Q1 FY26 with revenue of ₹441.4 crore (up 13.1% YoY) and EBITDA of ₹60.2 crore (up 24.7% YoY), marking 126 bps margin expansion to 13.6%. PAT surged 93.7% to ₹17.6 crore, reflecting operational leverage and cost efficiency. Formulation (75% of revenue) grew 13% YoY on broad-based geographic strength—Emerging Markets up 25%, Europe up 4% on high base, India up 8%. API crossed ₹100 crore quarterly run-rate (up 14% YoY, 21% QoQ) driven by WHO pre-qualified Albendazole demand and improved product mix. Gross margin expanded 180 bps to 46.9% with target of 50% ahead. Vash Life Sciences (merger target) posted ₹353 crore revenue (+14.4%) with 19.5% EBITDA margins, and combined entity shows 16.2% margins with 21% EBITDA growth. Merger NCLT meeting scheduled August 30, 2025 on track for Q3-Q4 completion. India field force doubled to ~200 people will drive double-digit growth ahead. Key risk: USD strengthening impact on hard-currency API realizations and potential tariff disruptions to 17-18% US market exposure.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided mid-teens EBITDA margins for Sequent standalone for FY26, with intent to reach higher side as year progresses with operating leverage.
- Vash Life Sciences targets 20%+ EBITDA margins medium-term; current 19.5% margins already in line with this aspiration.
- Sequent guiding gross margin from current ~48-49% toward 50% level over next few quarters through product mix improvement and cost initiatives.
- Management expects PAT growth to be well ahead of EBITDA growth for both companies going forward, indicating operating leverage and tax efficiency benefits.
Risks flagged
- Analyst questioned management on Trump-era pharma tariffs and Biocaut Act; Dr. Hari acknowledged ~17-18% US exposure but expressed more opportunity than risk given strong regulatory audit track record (5 audits in 12-15 months, all VAI/no 483).
- Sequential gross margin declined QoQ despite YoY improvement due to less favorable product mix in API. Management acknowledged some quarters may see swings between 48-49% before sustaining upward trajectory.
- Management declined to break out companion animal financials despite direct analyst question, citing ~5% of total business. This limits visibility into higher-margin segment performance and growth trajectory.
- CDMO business buildout has 12-18 month timeline with team building still in progress. Management specifically said 'I don't want to just come up CDM just few things' indicating early-stage nature of this growth lever.
Key quotes
- We have moved beyond consolidation and course correction into a phase of accelerated growth as we shape a future ready company.
- The current margins are in line with our medium-term aspiration of 20 plus margins. In line with previous quarters, we generated strong free cash flow.
- There is no alternative for India. The only either China or India for all these things where there is large manufacturing capability. So they won't go back to China. So still I say there's a good opportunity for India.
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