Sequent Scientific Ltd Q2FY26 – From Sick Puppy to Alpha Dog? 500% Profit Jump and an NCLT Merger Make This Pet Pharma Bark Louder Than Ever

1. At a Glance

Sequent Scientific Ltd (NSE: SEQUENT) — India’s largest animal health company — has just pulled off the financial equivalent of a golden retriever learning calculus. The Q2FY26 results show a 504% profit surge YoY, a margin expansion that can make even Sun Pharma look twice, and a merger so neat that even NCLT wagged its tail in approval. The stock sits pretty at ₹239 (as of 21 Nov 2025), giving the company a market cap of ₹6,051 crore and an EV of ₹6,470 crore.

It’s got a P/E of 140 — the kind of valuation that screams “we’re not profitable yet, but we’ve got dreams.” The return on equity (ROE) is a modest 3.2%, while ROCE limps along at 8.47%. The company’s quarterly sales clocked ₹424 crore, and PAT came in at ₹15.7 crore — up 504% YoY.

No dividends. No drama. Just a turnaround story brewing with scientific precision and the patience of a vet dealing with hyperactive labradors. If you’d bought this stock at ₹111 (its 52-week low), you’d have fetched a 115% return — or in Sequent’s case, maybe a few extra dog bones for celebration.

So what changed? A merger with Viyash Lifesciences, a focus on formulations, and R&D pipelines bursting with filings and new launches — that’s what.

2. Introduction

Once upon a time, Sequent Scientific was the pharmaceutical world’s shy puppy — cute, promising, but constantly tripping over its own feet. Fast forward to 2025, and this pup has grown into a global animal health powerhouse with operations across five continents and 100 countries.

Sequent’s metamorphosis from chaos to consistency is a business school case study waiting to be written. Between 2019 and 2023, it went through the kind of financial grooming that would make a Pomeranian blush — divesting non-core units, shutting inefficient facilities, and focusing entirely on the animal healthcare business through its brand,Alivira.

Today, Sequent is thelargest animal healthcare company in Indiaand among thetop 20 globally. Its claws are sunk deep into formulations and APIs, with a distribution pawprint stretching across Europe, Turkey, Latin America, and emerging markets.

But every pedigree story has a few fleas. Revenue growth was sluggish at just 5.6% over five years, and return ratios were weaker than a paracetamol in a pandemic. The good news? The company has finally learned how to monetize its bark — and Q2FY26 shows it’s learning to bite too.

3. Business Model – WTF Do They Even Do?

Let’s be real — most investors think “animal health” means a few vaccines and some dog shampoo. But Sequent’s business is far more scientific and a lot less fluffy.

The company operates intwo main segments—FormulationsandAPIs(Active Pharmaceutical Ingredients).

• Formulations (76% of Q1FY25 Revenue):These are ready-to-use drugs for livestock, poultry, and pets — made across five facilities in Europe, Turkey, Brazil, and India. Europe alone accounts for 52% of formulation revenue, followed by 40% from emerging markets and 8% from India.They recently launched products likeDogstem(Sweden) andFlortekxin(Spain), while the vaccineSyvazulbarked its way to strong sales in Belgium and the Netherlands.
• API (24% of Q1FY25 Revenue):Think of APIs as the “ingredients” that make drugs work. Sequent produces 32 commercial APIs across two manufacturing facilities and exports to over 50 countries.In FY25, demand revived foranthelmintic products(anti-worm drugs) — a segment that had previously gone cold.
• Analytical Services:Through its subsidiarySeQuent Research Ltd (SRL)in Mangalore, the company runs a USFDA-approved lab with 70+ scientists who do everything from wet lab research to trace element analysis. Basically, these are the nerds behind the scenes ensuring no tablet kills a cat accidentally.

Together, the business model runs like a well-trained Labrador — responsive, global, and increasingly profitable.

4. Financials Overview

Witty Commentary:This table basically says — “From doghouse to penthouse.” A 504% YoY PAT jump is the kind of glow-up you expect after a ₹50,000 vet bill. Revenue grew a steady 15%, while operating margins hit a juicy 13%. The QoQ dip in