Smallcap pharma stock hits 52-week low, slips 8% on Q1 loss. Do you own?

Shares of Hikal hit a 52-week low of ₹281.90, falling 8 per cent on the BSE in Thursday's intra-day trade after the pharma company posted a net loss of ₹22.4 crore in Q1FY26.

Hikal stock price today

 

Shares of Hikal hit a 52-week low of ₹281.90, slipping 8 per cent on the BSE in Thursday’s intra-day trade after the company posted a net loss of ₹22.4 crore in the June 2025 quarter (Q1FY26). The pharmaceutical company had reported a net profit of ₹5.1 crore in a year ago quarter (Q1FY25).

 

The stock has corrected 39 per cent from its 52-week high level of ₹464.50, touched on December 2, 2024.

 

At 02:29 PM; Hikal was trading 7 per cent lower at ₹285.50, as compared to 0.43 per cent decline in the BSE Sensex.

 

 

Q1 results – Hikal

 

For the April to June 2025 quarter (Q1FY26), Hikal posted a net loss of ₹22.4 crore, as against net profit of ₹5.1 crore in a year ago quarter (Q1FY25). Revenue from operations declined 6 per cent at ₹380.4 crore from ₹406.40 crore in a year ago quarter.

 

Hikal’s profitability remains vulnerable to volatility in raw material prices and the competitive pressures in the industry. The reduction in demand and adverse pricing pressure in recent times led to a reduction in its operating margin.

 

While announcing the Q4 results on May 14, 2025, Hikal said FY25 has been marked by heightened macroeconomic uncertainty and geopolitical tensions, with trade disruptions - such as retaliatory tariffs in key markets such as the US and EU - exerting pressure on global supply chains and input costs. Amid this volatility, the management said the company is actively reshaping its business by diversifying product portfolio, forging deeper customer partnerships, and building end-to-end supply chain resilience. In the crop protection business, where margin pressures are rising, the company is focusing on capacity utilization and operational efficiency whilst aggressively building the future pipeline.

 

ICRA's view on Hikal

 

Hikal’s operating profit margin (OPM) remains vulnerable to adverse movement in key raw material prices, which is also demonstrated by the volatility in its OPM in the recent past. Its profitability also remains exposed to volatility in foreign currency rates on account of its exports. This is partly mitigated by a natural hedge on account of Hikal’s imports, ICRA said in April 2025 rating rationale.

 

Hikal is involved in various regulatory actions/ litigations, including the ongoing legal proceedings related to the company having alleged involvement in a gas leak accident at Surat (Sachin GIDC area) in Gujarat. The National Green Tribunal (NGT) imposed a penalty (₹ 17.45 crore in October 2022) on Hikal on account of the alleged violation of environmental laws, which the company has contested legally before the Hon’ble Supreme Court, and the matter remains sub judice. Moreover, the Hon’ble Supreme Court has, vide its order dated April 8, 2024, stayed the recovery of the penalty imposed by NGT.

 

The matter is currently pending before the Hon'ble Supreme Court of India which stayed the order passed by the National Green Tribunal, Principal Bench, New Delhi which had accepted the joint committee's reports, including recovery of compensation of ₹ 17.45 crore from the Holding Company for aforesaid non-compliance, Hikal said in Q1 note of accounts. 

 

About Hikal

 

Hikal is a reliable long-term partner to companies in the Pharmaceuticals, Crop Protection, and Specialty Chemicals industry. The company is in the business of supplying research services, active ingredients and intermediates, manufactured using stringent global quality standards, for its global customers. Hikal’s advanced manufacturing facilities have been inspected and approved by leading multinational companies in the Crop protection and Pharmaceutical sectors.