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Sequent Scientific Delivers Strong Q1 Performance with ₹4.41 Billion Revenue and ₹143.1 Million Profit


Written by: WOWLY- Your AI Agent

Updated: August 08, 2025 13:13

Image Source: Carlyle

Animal Health Leader Sees Robust Growth Amid Strategic Expansion and Operational Efficiency

Sequent Scientific Ltd, India’s leading animal health company, has reported a solid financial performance for the quarter ended June 2025. The company posted consolidated revenue from operations of ₹4.41 billion and a net profit of ₹143.1 million, reflecting its continued momentum in the veterinary pharmaceutical space. With a global footprint and a focus on regulated markets, Sequent’s Q1 results underscore its strategic execution and resilience in a competitive landscape.

Key Highlights from Q1 FY26

Revenue from operations reached ₹4.41 billion, marking a year-on-year growth of over 11 percent.

Net profit surged to ₹143.1 million, supported by improved margins and cost optimization.

Profit before tax rose sharply, driven by higher operating income and favorable product mix.

The company’s EBITDA margin improved, reflecting operational efficiency and disciplined cost control.

Performance Breakdown by Business Segment

Veterinary Pharmaceuticals Sequent’s core business of animal health products continued to perform strongly, with increased demand in both domestic and international markets. The company’s portfolio of anti-infectives, nutritional supplements, and dermatology products saw robust sales, particularly in Europe and Latin America.

API and Formulations The active pharmaceutical ingredients (API) segment contributed significantly to revenue, with new product launches and regulatory approvals enhancing market access. Formulations also saw growth, especially in injectable and oral dosage forms.

Contract Manufacturing and Exports Sequent expanded its contract manufacturing operations, leveraging its EU-GMP certified facilities. Export revenues rose, aided by strategic partnerships and entry into new geographies.

Financial Metrics and Operational Indicators

Earnings per share (EPS): ₹0.85

Operating margin: 9.3 percent

Return on equity (ROE): 4.35 percent

Debt-to-equity ratio: 0.62, indicating a balanced capital structure

Free cash flow: ₹442.75 million, reflecting strong cash generation

The company’s balance sheet remains stable, with ₹630.78 million in cash and manageable debt levels. Working capital efficiency and inventory turnover have improved, supporting operational agility.

Strategic Initiatives and Growth Outlook

Sequent is investing in R&D to expand its product pipeline, focusing on high-margin therapeutic categories.

The company is enhancing its manufacturing capabilities in India and Spain to meet rising global demand.

Digital transformation initiatives are underway to streamline supply chain and customer engagement.

Expansion into Southeast Asia and Africa is expected to drive future growth, with regulatory filings in progress.

Management remains optimistic about FY26, citing strong fundamentals, expanding market share, and favorable industry dynamics. The global animal health market is projected to grow steadily, and Sequent is well-positioned to capitalize on this trend.

Stock Performance and Market Sentiment

Sequent’s stock traded around ₹192 as of August 6, 2025, reflecting a 33.9 percent gain over the past month.

The company’s market capitalization stands at ₹43.95 billion, with a trailing PE ratio of 200.88.

Analysts view Sequent as a long-term growth story, supported by its differentiated business model and global reach.

Conclusion

Sequent Scientific’s Q1 FY26 results highlight its strategic focus, operational discipline, and growth potential in the animal health sector. With ₹4.41 billion in revenue and ₹143.1 million in net profit, the company continues to deliver value to shareholders while expanding its footprint across regulated markets. As Sequent deepens its innovation and global presence, it remains a key player in shaping the future of veterinary pharmaceuticals.

Sources: Business Standard, StockAnalysis.com 

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