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    VIYASH

    VIYASH
    Healthcare·20 May 2026
    Management Summary

    Viyash Scientific Limited reported a transformative FY26, achieving its strongest quarter in Q4 with EBITDA exceeding INR200 crores and a significant 1,324% PAT growth for the full year. The company saw robust revenue growth, particularly in formulations, and substantial margin expansion. Management highlighted successful integration, strategic focus on complex products, and expansion in animal health, while also addressing potential challenges from raw material volatility and complex US market dynamics.

    Highlights

    6

    • Q4 FY26 EBITDA surpassed INR200 crores, marking the strongest quarter in company history.

    • FY26 EBITDA grew by 59.6% to INR702 crores, and PAT increased by 1,324% to INR225 crores.

    • Q4 FY26 Total Revenue increased by 19.1% YoY to INR920 crores, with Formulations revenue growing 28% to INR499 crores.

    • Gross margins improved significantly, expanding by 236 basis points in Q4 FY26 to 55.1% and 321 basis points in FY26 to 54.3%.

    • The company achieved external credit rating upgrade from A to AA- for long-term and A1 to A1+ for short-term.

    • Synergy benefits from integration are currently tracking at INR50-60 crores annualized, with potential to reach INR125-150 crores in the next 12-18 months.

    Concerns

    3

    • Raw material availability issues and price volatility, along with freight impacts, are being managed but could pose challenges if they persist beyond the next quarter.

    • The US companion animal market presents complex guidance and regulatory challenges, making it a slower growth area compared to Europe.

    • API business growth was single-digit (8%) in FY26, though management expects double-digit growth going forward due to new product approvals.

    Key financials

    Metrics

    8

    Periods

    2

    Q4 FY26

    4
    • Total Revenue
      ₹920 Cr
      YoY+19.1%
    • Adjusted EBITDA
      ₹200 Cr
      YoY+64%
    • EBITDA Margin
      21.7%
    • PAT
      ₹66 Cr

    FY26

    4
    • Total Revenue
      ₹3,420 Cr
      YoY+13.8%
    • Adjusted EBITDA
      ₹702 Cr
      YoY+59.6%
    • EBITDA Margin
      20.5%
    • PAT
      ₹225 Cr
      YoY+13.2%

    Segment breakdown

    • Formulations₹499 Cr56.5%
    • API₹384 Cr43.5%
    Donut· Share of Revenue (Q4 FY26)

    Capital allocation

    3
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    Balance sheet remains strong, supported by healthy liquidity and comfortable leverage position, which gives us flexibility to pursue growth opportunities, both organic and inorganic.

    Guidance & targets

    8
    CategoryTargetPriority
    Growth
    Innovator business growth
    30-40%
    		High
    Growth
    Life cycle management innovative business growth
    40%
    		High
    Growth
    Overall growth rate
    15%
    		High
    Product Development
    Companion animal new products
    7-8 products per year
    		High
    EBITDA
    EBITDA target
    INR1,000 crores
    		High
    Tax Rate
    Average tax rate
    26-27%
    		High
    Synergies
    Annualized synergy benefits
    INR125-150 crores
    		High
    Depreciation
    Goodwill amortization depreciation
    INR35 crores
    		High

    EBITDA target

    next 2-3 years (FY27 internal target)
    CurrentINR702 crores (FY26)
    TargetINR1,000 crores

    Why it matters

    Tracking progress towards the ambitious EBITDA target will indicate the success of integration and growth strategies.

    So INR1,000 crores, we are targeting. So maybe next 2, 3 years, of course, next session when we come in June meeting. So mostly, we'll be able to indicate. But at this point, INR1,000 crores.

    How to verify

    key_financials.metrics[label='Adjusted EBITDA (FY27)']

    Risks & concerns

    3
    RiskSeverity

    Raw material availability and price volatility

    Geopolitical issues causing raw material availability and price volatility, managed through inventory and price adjustments, but could be a concern if prolonged. — Both acknowledged

    medium

    Freight cost impact

    Freight costs impacted Q4 by INR1-2 crores, managed by efficient solvent recovery and price increases. — Management acknowledged

    low

    Complexity of US companion animal market

    US market for companion animals has complex guidance and is a slower growth area compared to Europe. — Management acknowledged

    medium

    Q&A highlights

    8

    “CDMO, there are 3, 4 models, working with innovators on NCE molecules, okay, where we start with Phase III, move to the commercial thing. And second thing is start with the life cycle management, whatever their products normally once its patent expires, they look for alternatives. That's the second business. And third business, now there's a lot of opportunities for specialty companies, both in Europe and also India big companies where they don't have infrastructure to develop and manufacture.”

    Clarifies the multi-pronged approach to CDMO, including NCE, life cycle management, and specialty products, indicating diverse revenue streams and long-term potential.

    asked by Vishal Manchanda

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance in Q4 and FY26

    Viyash Scientific Limited reported its strongest quarter in Q4 FY26, with EBITDA surpassing INR200 crores. For the full fiscal year 2026, EBITDA grew by 59.6% to INR702 crores, and Profit After Tax (PAT) saw a remarkable increase of 1,324% to INR225 crores. Total revenue for Q4 FY26 was INR920 crores, a 19.1% YoY growth, while full-year revenue reached INR3,420 crores, up 13.8% from FY25. Gross margins expanded significantly, by 236 basis points in Q4 to 55.1% and 321 basis points in FY26 to 54.3%, reflecting improved operational efficiency and product mix.

    02

    Strategic Shift Towards Complex Products and Integration

    The company has undergone a transformative year, successfully integrating business, operations, and corporate functions onto a unified platform. This integration has strengthened execution and improved operating leverage. Management emphasized a strategic shift from general volume products to more complex and high-potent areas, particularly in human health formulations and APIs. This strategy includes internalizing APIs, bringing manufacturing to India, and developing new oncology products in a dedicated R&D lab.

    03

    Growth Drivers in Animal Health and CDMO

    The animal health segment, which was stable for the past five years, is now expected to grow strongly, with revenue reaching an INR400 crores run rate. The focus is on new API products coming out of patent, expanding existing products geographically, and developing 7-8 new companion animal products annually. The CDMO business is also a core growth area, with models spanning NCE molecules, life cycle management, and specialty products for companies lacking infrastructure. Management expects innovator business to grow 30-40% in FY27, with life cycle management growing 40% on a base of INR200-225 crores.

    04

    Synergy Realization and Margin Sustainability

    Integration synergies are tracking well, currently at INR50-60 crores annualized, with a potential to reach INR125-150 crores in the next 12-18 months as approvals for new capacities come through. Management is confident in maintaining gross margins around the current 55% level, attributing this to the strategic product mix, forward/backward integration, and optimization efforts. The company aims for an overall annual growth rate of 15% and an EBITDA target of INR1,000 crores in the next 2-3 years.

    05

    R&D Expansion and Future Outlook

    Viyash is significantly expanding its R&D capabilities, particularly for companion animals, with increased capex and hiring of scientists. The company is also evaluating selective inorganic opportunities to further strengthen its platform. The average tax rate is expected to normalize to 26-27% from FY27 onwards, and goodwill amortization depreciation will significantly reduce from INR100 crores to INR35 crores next year, positively impacting the bottom line.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.