Viyash Scientific reveals a remarkable profit increase driven by strategic restructuring, margin improvements, and a focus on complex APIs and formulations following its merger with SeQuent Scientific.
Viyash Scientific’s latest annual numbers show how sharply profits can rise even when sales grow at a far more modest pace. According to the company’s FY26 results, revenue increased 13.8 per cent to ₹3,420 crore, yet profit after tax jumped to ₹224.6 crore from about ₹15.8 crore a year earlier. The scale of the increase is striking, but it also reflects a low comparative base in FY25 and the effect of a major restructuring that brought together Viyash Lifesciences and SeQuent Scientific into a single platform.
The merged group now spans human and animal health, with activity across APIs, finished formulations and contract development and manufacturing. FilingReader reported that the company’s first post-merger results showed revenue of ₹858.4 crore for the quarter ended December 31, 2025, while nine-month profit rose 230 per cent. The company has said six intermediates had already been validated at its sites, and Dealroom noted that management is leaning on a network of 10 global facilities as it targets opportunities tied to the patent cliff between 2025 and 2030.
The profit surge was driven less by rapid top-line growth than by sharper margins, more in-house manufacturing and a better mix of products. Viyash shifted away from lower-value commodity work and towards more complex APIs, potent products and differentiated formulations, while increasing backward integration in its human-formulation business. It also moved suitable products to lower-cost Indian manufacturing, improved utilisation at existing plants and cut finance and exceptional costs. In FY26, gross margin improved to 54.3 per cent from 51.1 per cent, adjusted EBITDA margin rose to 20.5 per cent from 14.6 per cent and net debt fell to ₹166.1 crore from ₹451.1 crore.
The momentum improved through the year. In the fourth quarter, revenue rose 19.1 per cent to ₹920 crore and EBITDA climbed nearly 64 per cent to ₹200 crore, while profit after tax moved from a loss to a profit. The company’s animal-health business is expanding in companion animals and overseas markets, while its human-health arm is pushing deeper into complex generics and oncology. Even so, cash conversion remains a weakness: operating cash flow fell in FY26 as working capital absorbed more money, leaving the next test focused on whether Viyash can sustain margins above 20 per cent and convert its pipeline into steadier growth.
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