- Hikal Ltd. found revenue irregularities in Q4FY25, Q1FY26, and Q2FY26 during a review
- The company reversed Rs 80.7 crore in revenue for Q2FY26
- Sales in Q4FY25 and Q1FY26 were about 2% lower if irregularities had not occurred
Hikal Ltd. has revealed discrepancies in its revenue reporting spanning Q4FY25, Q1FY26 and Q2FY26, stating that irregularities were identified during an internal fact-finding review. The company suspects misconduct by employees in roles connected to sales and operational support.
Hikal says their 2% of sales were inflated.
— Beat The Street (@BeatTheStreet10) December 26, 2025
Incorrectly recognised due to employee fraud.
Company has reversed these sales
The issue has been noticed in Q4FY25, Q1FY26 and Q2FY26.
Company reiterates all sales are geniune. Confirms no siphoning of funds#redflag #forensic⦠pic.twitter.com/8OwqF0948D
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Company Reverses Rs 80.7 Crore Revenue For Q2FY26
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The pharmaceutical and crop protection company confirmed the reversal of Rs 80.7 crore in revenue for Q2FY26. In an exchange filing, Hikal Ltd. said the estimated impact is largely related to “revenue recognition and the timing thereof, including potential reversals/adjustments to revenue recorded in the relevant periods and consequential impacts on the quarterly financial results and related financial statement line items.”
The company added, “Had the irregularities not occurred, sales for the relevant period(s) would have been lower by approximately 2% in Q4FY25 and Q1FY26. Further, the company has already reversed revenue of Rs 80.7 crore for Q2FY26.”
Impact On Financials
A breakdown shared in the disclosure shows:
Q4FY25: 2% lower sales
Q1FY26: 2% lower sales
Q2FY26: Rs 80.7 crore reversal
No Misappropriation, Underlying Sales Genuine
Despite the irregularities, the company said that all recognised transactions are legitimate. It noted that all sales are backed by customer purchase orders and that the findings do not indicate diversion of funds.
“Pursuant to the fact-finding review, the company confirms that all the underlying sales are genuine and are backed by customer purchase orders. The company confirms that there is no siphoning/embezzlement or misappropriation of funds,” it said.
Suspected Employee Misconduct
Hikal attributed the issue to employees within internal operational functions. Personnel linked to sales and marketing, logistics and related departments are believed to be involved, said the company in the exchange filing.
“We wish to inform you that the company has identified certain irregularities/alterations during the course of a fact-finding review relating primarily to revenue recognition and supporting documentation for certain periods. The matter involves misconduct by certain employees and is being treated as a misconduct basis a fact-finding review,” stated the company.
Measures And Next Steps
Hikal said it was assessing its statutory obligations and preparing to notify authorities where required. The disclosure noted that the company is “evaluating applicable reporting requirements and will take appropriate steps to report the matter to relevant authorities, as may be required under applicable law/regulations.”
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