Latest news with #Hikal
&w=3840&q=100)
Business Standard
07-08-2025
- Business
- Business Standard
Smallcap pharma stock hits 52-week low, slips 8% on Q1 loss. Do you own?
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.
Mint
04-08-2025
- Business
- Mint
Sona Comstar row shows why Indian firms must let professionals lead
The Sona Comstar dispute has once again brought to the fore the enduring clash between professional management and outdated promoter mindsets in some Indian companies. Many business families and promoters continue to treat listed companies as personal fiefdoms. This mindset, rooted in feudal control and family dominance, must give way to modern principles of governance and board-led decision-making. Over the past few years, several companies—Hikal, Godfrey Phillips India, Finolex Cables, and Raymond—have seen their business performance, investor confidence, and boardroom dynamics destabilized due to promoter or family disputes. These conflicts hurt minority shareholders, sap management bandwidth, and destroy wealth. The absence of formal succession planning and the refusal to separate ownership from management has become one of the biggest governance risks in Indian companies. Sona Comstar conflict Sona Comstar is a professionally run, board-led, publicly listed auto component manufacturer, with promoters holding a 28.02% stake through a company called Aureus Investment Private Ltd. In June 2025, Sona faced the unexpected demise of its non-executive chairman, Sunjay Kapur. The company appointed independent director Jeffery Mark Overly as chairman, and Priya Sachdev Kapur, Sunjay's wife, was brought on as a non-executive director. What followed, however, was a storm of accusations from Sunjay Kapur's mother, Rani Kapur. Claiming she was entitled to a majority shareholding under her late husband's will, she accused the board of coercion, exclusion, and lack of transparency. She demanded that the company's AGM be postponed, alleging the board had acted against her interests. The company's response was categorical: Rani Kapur had not held any shares in Sona Comstar since 2017 and had ceased to be a director on the board in 2019. All decisions, it said, had been taken lawfully, with shareholder approval where required. The AGM went ahead as scheduled, and the board's composition remained unchanged. But the episode, playing out in the media, illustrates a troubling trend: promoters and their families continue to believe that personal ties entitle them to special treatment, even when they no longer hold legal ownership or managerial authority. This belief must be challenged if India is to protect the integrity of its capital markets. A board-run company is not a family fiefdom The moment a promoter or founder lists their company on a stock exchange, they must accept that the company is also owned by others. Governance must shift from lineage to corporate law. Shareholders, not family elders, are now the true owners. And the board of directors becomes the supreme decision-making body. Promoters may continue to play an important role, but within clearly defined boundaries: they can nominate directors in proportion to their shareholding, vote at general meetings like any other shareholder, and offer strategic input when invited. What they cannot do is bypass the board, demand special privileges, or impose personal claims on company decisions. The Sona Comstar dispute shows what happens when these lines are blurred: uncertainty, reputational damage, and a breakdown in governance. Learning from others: The importance of succession planning The Sona Comstar episode also underscores a long-standing weakness in Indian family-run enterprises: the failure to plan for succession and wealth transfer. In many of the earlier cases mentioned, promoters delayed or avoided difficult conversations around wills, trusts, and inheritance, leading to chaos when a founder passes away. Well-run companies institutionalize succession frameworks. Family-owned companies should create family charters, shareholder agreements, or trust structures to ensure clarity and continuity. This allows the business to function without being derailed by internal family strife. The Securities and Exchange Board of India, to its credit, introduced new regulations in July 2023 requiring listed companies to disclose family settlement agreements. But in practice, disclosures have been patchy, vague, or purely procedural. If promoters treat compliance as a formality rather than a commitment to transparency, these reforms will fail to deliver real accountability. The board's role in insulating the company Boards must now assume a more assertive role, not as passive overseers, but as active protectors of shareholder value and corporate integrity. In the face of promoter disputes, boards must ensure that professional management is insulated from family politics; that company funds are not misused to fight personal battles; that employee morale and operations remain unaffected; and that a full-time, independent CEO is empowered to make decisions based on merit and strategy. Global and domestic institutional shareholders want evidence that a company is run by professionals and governed by law. Boards that fail to ring-fence management from promoter interference will face hard questions from shareholders, analysts, and regulators. Disputes like the one at Sona Comstar do more than damage reputation, they erode investor trust and destroy value for all. They signal to the market that a company may not be ready to embrace the rigour of modern corporate governance. In contrast, promoters who act as stewards, offering vision, participating constructively through the board, and respecting professional autonomy, can continue to add immense value. Companies like Marico, Infosys, and Asian Paints exemplify this model, where promoters have stepped back from day-to-day operations while continuing to play a strategic role through the board. Governance must trump legacy The Sona Comstar dispute is a wake-up call: in business, the line between promoter influence and corporate governance must be clearly drawn and firmly enforced. Families must formalize succession, make transparent disclosures, and relinquish informal power when their legal control ends. Boards must act independently, protect the company's interests, and prioritize professional management. Regulators, like Sebi and the Ministry of Corporate Affairs, must push for genuine, not symbolic, compliance. Ultimately, in a democracy of capital, only shareholding determines influence. Legacy may build a company, but governance is what keeps it standing. The author is founder and MD, InGovern Research Services. Views are personal.
Business Standard
26-06-2025
- Business
- Business Standard
Hikal introduces Digital Infrastructure at 130 year old Zilla Parishad School in Alibaug
PRNewswire Alibaug (Maharashtra) [India], June 26: Hikal, a preferred long-term partner to global life sciences companies, has strengthened its commitment to rural education and sustainable development through a major community support initiative at the 130 year old Zilla Parishad Marathi School in Zirad, Alibaug. Undertaken in partnership with Utkarsh Global Foundation, this effort is part of Hikal's broader corporate social responsibility (CSR) programme, Srijan, which focuses on creating shared value across communities near its operational sites. In response, Hikal Limited transformed the 130 year school environment by providing 70 new wooden benches to replace broken furniture, eight LED smart TVs (43 inches) to facilitate digital and interactive learning, one projector with a screen for student skill-building exercises, and a multifunction printer to ease administrative and academic workflows. In addition, a shaded handwash area was constructed to improve hygiene standards, ensuring children can maintain cleanliness and comfort throughout the school day, regardless of weather conditions. These enhancements aim to create a more engaging and safe learning environment, encourage regular attendance, and promote better academic outcomes. "At Hikal, we've always believed that the success of a business must extend beyond balance sheets. Real value is created when growth is shared, when the communities around us move forward with us. That belief has guided us for decades and remains the essence of our CSR philosophy. This school, like so many others in rural India, has long carried the weight of potential, bright children, and committed teachers, but constrained by limited infrastructure. Today, we've taken a small but meaningful step towards unlocking that potential. It's a reflection of our enduring commitment to enabling inclusive growth and shaping a more equitable future," said Mr. Jai Hiremath - Executive Chairman, Hikal Limited. "At Hikal, we see education as the cornerstone of progress. Building on the strong foundation laid by our leadership, we are committed to creating lasting impact in the communities where we operate. Our efforts at Zirad reflect a forward-looking vision, bridging educational gaps through safe, inclusive, and digitally empowered learning environments. We believe such initiatives will empower the next generation to thrive, dream bigger, and shape a more resilient and prosperous future for all," said Mr. Sameer Hiremath, Vice Chairman & Managing Director, Hikal Limited. This initiative reflects Hikal's ongoing focus on sustainability and community development. Through its Srijan programme, the company actively collaborates with NGOs in areas such as secondary education, skill enhancement, employability, healthcare, sanitation, infrastructure development, environmental sustainability, and preservation of national heritage, art, and culture.
The Wire
26-06-2025
- Business
- The Wire
Hikal introduces Digital Infrastructure at 130 year old Zilla Parishad School in Alibaug
ALIBAUG, India, June 26, 2025 /PRNewswire/ -- Hikal, a preferred long-term partner to global life sciences companies, has strengthened its commitment to rural education and sustainable development through a major community support initiative at the 130 year old Zilla Parishad Marathi School in Zirad, Alibaug. Undertaken in partnership with Utkarsh Global Foundation, this effort is part of Hikal's broader corporate social responsibility (CSR) programme, Srijan, which focuses on creating shared value across communities near its operational sites. In response, Hikal Limited transformed the 130 year school environment by providing 70 new wooden benches to replace broken furniture, eight LED smart TVs (43 inches) to facilitate digital and interactive learning, one projector with a screen for student skill-building exercises, and a multifunction printer to ease administrative and academic workflows. In addition, a shaded handwash area was constructed to improve hygiene standards, ensuring children can maintain cleanliness and comfort throughout the school day, regardless of weather conditions. These enhancements aim to create a more engaging and safe learning environment, encourage regular attendance, and promote better academic outcomes. "At Hikal, we've always believed that the success of a business must extend beyond balance sheets. Real value is created when growth is shared, when the communities around us move forward with us. That belief has guided us for decades and remains the essence of our CSR philosophy. This school, like so many others in rural India, has long carried the weight of potential, bright children, and committed teachers, but constrained by limited infrastructure. Today, we've taken a small but meaningful step towards unlocking that potential. It's a reflection of our enduring commitment to enabling inclusive growth and shaping a more equitable future," said Mr. Jai Hiremath – Executive Chairman, Hikal Limited. "At Hikal, we see education as the cornerstone of progress. Building on the strong foundation laid by our leadership, we are committed to creating lasting impact in the communities where we operate. Our efforts at Zirad reflect a forward-looking vision, bridging educational gaps through safe, inclusive, and digitally empowered learning environments. We believe such initiatives will empower the next generation to thrive, dream bigger, and shape a more resilient and prosperous future for all," said Mr. Sameer Hiremath, Vice Chairman & Managing Director, Hikal Limited. This initiative reflects Hikal's ongoing focus on sustainability and community development. Through its Srijan programme, the company actively collaborates with NGOs in areas such as secondary education, skill enhancement, employability, healthcare, sanitation, infrastructure development, environmental sustainability, and preservation of national heritage, art, and culture. (Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.).
Business Standard
17-06-2025
- Business
- Business Standard
Hikal clears ANVISA GMP audit at Bengaluru API unit
Hikal said that it has successfully cleared the Good Manufacturing Practices (GMP) inspection conducted by the Brazilian Health Regulatory Agency (ANVISA) at its API manufacturing unit in Jigani, Bengaluru, Karnataka. The audit, which covered multiple active pharmaceutical ingredients (APIs), was conducted from 14 April to 18 April 2025. The successful completion of the inspection reinforces Hikals compliance with international quality standards and strengthens its position in regulated markets like Brazil. Hikal is engaged in the business of pharmaceuticals, crop protection, and specialty chemicals. The companys consolidated net profit rallied 48.08% to Rs 50.20 crore on 7.44% rise in revenue from operations to Rs 552.40 crore in Q4 FY25 over Q4 FY24. Shares of Hikal rose 0.29% to Rs 377.10 on the BSE.
