Viyash Scientific Surges Post-Merger: Q3 Profits Soar, Debt Plummets

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AuthorIshaan Verma|Published at:
Viyash Scientific Surges Post-Merger: Q3 Profits Soar, Debt Plummets
Overview

Viyash Scientific Limited posted robust Q3 FY26 results, its first as a merged entity. Revenue climbed 11% YoY to ₹8,584 Million, while Adjusted EBITDA surged 64% to ₹1,854 Million, expanding margins by 690 basis points to 21.6%. Net Debt to LTM EBITDA fell sharply to 0.4x from 1.2x, showcasing strengthened financials. Management anticipates significant synergy realization and growth in animal health and API/CDMO sectors.

📉 The Financial Deep Dive

Viyash Scientific Limited (formerly Sequent Scientific Limited) has unveiled strong financial performance for the third quarter and the first nine months of FY26, marking a significant milestone as the first reporting period post-merger.

The Numbers: Stellar Q3 & 9M FY26 Performance

  • Revenue Growth: For Q3 FY26, the company reported revenues of ₹8,584 Million, a healthy increase of 11% year-on-year. The nine-month period (9M FY26) saw revenues grow 12% YoY to ₹25,004 Million.
  • EBITDA Surge: Adjusted EBITDA witnessed a substantial jump of 64% YoY in Q3 FY26, reaching ₹1,854 Million. For 9M FY26, adjusted EBITDA climbed 58% YoY to ₹5,024 Million.
  • Margin Expansion: EBITDA margins saw a dramatic improvement, expanding by 690 basis points in Q3 FY26 to 21.6%. For the nine-month period, margins improved by 580 basis points to 20.1%. Gross margins also strengthened to 54.5% in Q3 FY26 from 51.3% YoY.
  • Profitability Boost: Earnings After Tax (EAT) rose 15.5% YoY to ₹485 Million in Q3 FY26. The nine-month EAT showed an impressive 230% YoY growth to ₹1,583 Million.

The Balance Sheet & Cash Flow Snapshot

  • Debt Reduction: A key highlight is the significant strengthening of the balance sheet. The Net Debt to LTM EBITDA ratio improved dramatically from 1.2x in Q3 FY25 to 0.4x in Q3 FY26, indicating efficient debt management and deleveraging. Finance costs have consequently reduced.

The Outlook & Discussion

Management attributed the robust performance to new product introductions, successful cost optimization initiatives, and synergies realized from the recent merger. The company is focused on maximizing merger benefits across R&D, manufacturing, and front-end operations over the next 12 months. The strategic vision includes capturing market opportunities in the animal health and API/CDMO segments over the next 3-5 years.

A significant operational update is the exclusive distribution agreement signed with Boehringer Ingelheim for companion animal products in India, which is expected to bolster the company's market presence.

🚩 Risks & The Forward View

The company acknowledges general market and regulatory risks inherent in the pharmaceutical and animal health sectors. Investors will be keen to watch the pace of synergy realization and the execution of new product launches and market strategies in the coming quarters. The strong R&D capabilities (over 200 members) and a network of 10 globally approved API manufacturing facilities provide a solid foundation for future growth.

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