Hikal Ltd

- No significant increase in debt is expected; the current debt level is comfortable. - Debt has come down as of September compared to March. - For FY25-26, INR130 crores of debt repayment is expected, and the company plans to maintain similar debt levels. - Capex for the Pharma division will continue, partly funded by borrowing, but overall debt is expected to remain stable around INR800 crores. - No mention of any planned equity fundraising in the disclosed communication.

- Hikal Limited is putting up new capacity primarily on the Pharma side, which will come on stream next year but will take 1-2 years to commercialize and become operational. - The company continues to invest in assets in the Pharma division while maintaining a comfortable debt position. - Capex plans primarily focus on the Pharma business. - Debt is expected to stay around INR 800 crores with repayments planned (INR 130 crores in FY25-26). - Hikal is expanding its front-end presence by onshoring personnel and setting up offices in North America, Europe, Japan, and Latin America to boost new business acquisition. - Continuous R&D investment of about 4-5% of revenue is maintained to foster innovation and technology development. - The strategic initiatives include Project Pinnacle aimed at profitable and sustainable growth across all segments.

- Pharma division expects positive momentum with revenue and volume growth continuing into H2 FY25 and further improving in FY26, supported by new product launches and increased CDMO orders. - Crop Protection division anticipates stabilization with volume growth recovering, expected to improve margins by H2 FY26 as excess inventory issues resolve. - Overall, stronger H2 FY25 anticipated compared to H1 FY25; FY26 projected to be stronger than FY25. - No specific forward-looking growth guidance provided due to uncertainty in Crop division. - Company focused on capacity expansion in Pharma, with new capacity coming online next year (commercialization 1-2 years post-launch). - Emphasis on acquiring new customers, technological advancements, and broadening geographic presence to drive sustainable, profitable growth.

- Hikal Limited is optimistic about stronger H2 FY25 performance compared to H1, following historical trends, driven by seasonal and customer dynamics. - FY26 is expected to see growth in both revenue and EBITDA margins, particularly from the Pharma division. - Crop Protection is anticipated to recover with improvements starting possibly in H2 FY26, with the worst phase believed to be behind. - New Pharma capacity will come on stream next year but will take 1-2 years to reach commercial operations. - The company is not providing explicit forward-looking guidance or numerical forecasts due to uncertainties, particularly in the Crop division. - Continued focus on cost efficiencies, operational improvements, and new product launches in Pharma supports positive profitability momentum. - Overall, management expects long-term sustainable growth driven by strategic initiatives and improving margin profiles.

- Hikal Limited is witnessing increased traction in CDMO customers with more inquiries and requests for proposals (RFPs), notably from the U.S., Europe, and Japan. - There has been a significant increase (around 50% higher than last year) in customer audits, indicating growing interest and pending orders in the CDMO segment. - Commercial supplies for several validated products, including animal health APIs, are expected to start in the second half of calendar year 2025. - The company has a robust CDMO pipeline with around seven crop protection products from existing and potential clients. - New business acquisition efforts include onshoring teams in North America, Europe, Japan, and setting up an office in Latin America to be closer to customers. - Q3 orders may be subdued due to customer shipment timing but are expected to pick up strongly in Q4 and beyond, with H2 FY25 anticipated to be stronger than H1 FY25.