Hikal Ltd reported a net loss of INR 5.9 crore in the third quarter of FY26, compared with a profit of INR 17.2 crore in the corresponding quarter last year. Despite the loss, total revenue from operations increased 10.4 per cent year on year to INR 494.3 crore, up from INR 447.7 crore.

Profit before exceptional items stood at INR 29 crore. The company said the reported net result reflects an incremental financial impact linked to the implementation of four central labour codes during the period.

Management stated that the quarter marked a return to positive operational momentum following a regulatory-driven remediation phase earlier in 2025. The company indicated it has now shifted from corrective actions to a recovery phase focused on more sustainable, quality-led growth.

The pharmaceutical manufacturing segment generated revenue of INR 337 crore, delivering an EBIT margin of 12.3 per cent. Investments made over the past year have become operational, including a high-potency laboratory and a new pilot plant, aimed at strengthening capabilities in complex and high entry-barrier areas such as oncology.

According to leadership, these upgrades enhance the company’s differentiated CDMO positioning. Continued outsourcing demand is supporting a healthy project pipeline, with multiple programs progressing through development and scale-up stages, improving medium-term revenue visibility.