VIYASH Q3 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
₹858 Cr
verified against source
Revenue YoY
11%
reported change
EBITDA
₹185 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Viyash Scientific reported a landmark Q3 FY26 as the first combined quarter post-merger with Sequent, delivering ₹858 crore revenue (+11% YoY) and ₹185 crore adjusted EBITDA (+64% YoY) with 390bps margin expansion to 21%. The merged entity demonstrates structural margin improvement driven by formulation growth (up 20% YoY), European market penetration via Spain/Turkey operations, and API cost optimization through backward integration. One-time merger expenses of ₹49 crore (including ₹41 crore stamp duty/consultants and ₹7.7 crore MAT credit reversal) temporarily impacted PAT. Management reiterated confidence in sustaining 20%+ EBITDA margins, targeting ₹4,000 crore revenue by FY27-28 with 15-20% minimum growth. Key strategic priorities include companion animal expansion (only 15-16% genericized vs 85-90% in human health), CDMO momentum (targeting ₹70-90 crore this year, scaling post-FY27), and leveraging the strengthened balance sheet (Net Debt/EBITDA below 0.8x) for selective M&A. Risks include low single-digit API growth this quarter (timing issue per management), margin pressure in US formulation from competition, and execution challenges in North American animal health expansion.
Colored figures show movement against the previous available record.
Guidance to track
- At current growth trajectory (~15% CAGR), management is confident of achieving the target ahead of schedule. Q3 run-rate of ₹858 crore and 9-month momentum support acceleration.
- Management explicitly stated 20% margins are now sustainable and will be maintained, supported by four-segment diversification and continuous cost optimization initiatives across API manufacturing.
- While acknowledging Q3 EBITDA growth of 64% YoY represents one-time synergy realization, management targets minimum 15-20% annual growth across the merged entity going forward.
- Network optimization and operational integration synergies on track to materialize over next 12-18 months, including corporate function restructuring and capacity utilization improvements.
Risks flagged
- API grew only 2.9% YoY in Q3 despite strong 9-month performance. Management attributed this to CDMO contract timing delays pushing into next quarter, but this raises questions about API momentum sustainability.
- US human health formulation struggled with post-COVID inventory buildup and Indian cost competition. Management's pivot to complex products and backward integration is underway but only 45% of key products commercialized so far—execution risk remains.
- While only 15-16% genericized (vs 85-90% in human health), the pace of genericization depends on market development, regulatory approvals, and innovator strategy. Management expects acceleration but timing remains uncertain.
- Analyst specifically asked about North American formulation expansion post-merger. Management responded that supply chain understanding and product basket development requires time, making this a Phase 2 priority—meaning meaningful North American revenue may be 3+ years away.
Key quotes
- This is the first time we are discussing quarterly results of the merged entity Sequent and V together as one company. More than the numbers, it's a reflection of what we have built over the last few quarters—one integrated platform, one operating cadence and one team working towards the same outcomes.
- Q3 FY26 reflects steady progress on growth and steep change in profitability and balance sheet strength. Revenue from operations for Q3 FY26 was 858 crores grown up by 11% year-on-year. Adjusted EBITDA was 185 crores grown by 64% year-over-year with an EBITDA margin of 21% and expansion of 390 basis points.
- Our core strengths are anchored in R&D, manufacturing and intellectual property, and that is what allows us to move the portfolio up to the value curve. We are a R&D first organization to launch new products that is genuinely scaled and capable.
- Companion animal is one of the most attractive long-term opportunity for us supported by increasing pet ownership and also the genericization runway in animal health. If you see, genericization has happened only 15% whereas comparatively little more on farm animals and in human health 85-90%. That's where we see the opportunity for next couple of years.
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