The NCLT approved the merger yesterday, EBITDA hit 15% today, and suddenly everyone on the call sounded like they’ve already reached FY27. Coincidence? Of course not.
SeQuent Scientific’s Q2 FY26 concall felt less like a routine earnings update and more like a victory lap—with spreadsheets, synergies, and the occasional humblebrag. Management announced margin expansion, tripled profits, and promised that 20% EBITDA is no longer a dream but a “minimum.”
Formulations are flying, APIs are behaving, debt is shrinking, and Viyash—freshly merged—has arrived with swagger and spreadsheets. Companion animals are the new growth darlings, CDMO is the long-term jackpot, and R&D is suddenly the hero of the story.
Sounds great. Almost too great. Stick around—because the fine print is where the real story lives.
2. At a Glance
Revenue up 15% – Growth came from everywhere, so nobody can blame just one geography.
Formulations up 18% – The workhorse did the heavy lifting again, no overtime complaints.
Gross margin +270 bps – Cost discipline finally showed up to the party.
EBITDA margin at 15.5% – Management promised this earlier; surprisingly, they delivered.
PAT tripled YoY – From ₹63 cr to ₹196 cr, profits stopped pretending to be shy.
3. Management’s Key Commentary
“The NCLT approval marks the beginning of a new chapter.” (Translation: The merger deck can finally move from ‘proposed’ to ‘achieved’ 😏)
“We are firmly on the path to high-teen EBITDA margins.” (Translation: 15% was rehearsal, 20% is the main act.)
“Formulations account for about 75% of our sales.” (Translation: APIs are important, but formulations pay the EMIs.)
“Emerging markets grew 27% year-on-year.” (Translation: Developed markets are stable, but EMs are still hungry.)
“Viyash delivered its highest-ever performance.” (Translation: The new family member brought sweets and strong margins.)
“Out of 20 partnered CDMO products, 15 have $1bn+ market potential.” (Translation: See you in 2030… hopefully with patience intact 🚀)
“20% EBITDA margin is sustainable.” (Translation: Please stop asking if this quarter was a one-off.)
