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Viyash Scientific
Our verdict on Viyash Scientific isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The R&D pipeline has expanded to 17 products as of Q3 FY26. (1 exceeded across 1 tracked commitment)
“We started actually relooking at our R&D expansion. This year, you can see definitely our R&D expansion, both space as well as people. So next year, we will come up with strong CDMO.”
The company has significantly surpassed the 'high teens' target, achieving a 21% EBITDA margin in the first reported quarter of the merged entity. (2 exceeded, 3 met across 5 tracked commitments)
“You would recall that a few quarters ago, we had set ourselves a target of crossing 15% EBITDA and moving to high teens. We are now firmly on that path while also improving our profit after tax substantially.”
See the full cited Management analysis of Viyash Scientific
How durable is the business?
The regulatory moat has expanded significantly. The combined entity now boasts 15 manufacturing plants, 10 of which are USFDA approved, up from the previous count of 10 total facilities. (3 expanding)
“Combined API Manufacturing Network : 10 facilities with global approvals... US FDA, EU GMP, WHO GMP, KFDA, ANVISA, PMDA”
The moat is being strengthened through the proposed merger with Viyash Life Sciences, which brings high backward integration and cost leadership in large volume products. (5 expanding)
“most important factor to sustain US business today is a fully vertical or backward integrated for all our key products. We are done for almost all our key products 45% of our volume products we are done.”
See the full cited Business Model analysis of Viyash Scientific
Where does growth come from?
The combined entity (SeQuent + Viyash) is showing accelerating revenue growth, with the full year FY25 reaching ₹30,094 Million, a 12.3% increase over the previous year. (5 accelerating across 5 signals, 1 leading indicator)
“Revenue from operations for Q3 FY'26 was INR 858 crores grown up by 11% year-on-year.”
Viyash continues to improve its gross margins through vertical integration, with Q1 FY26 gross profit margins reaching 58.0%, up from 53.5% in the prior year. (2 accelerating, 2 new trend, 1 steady across 5 signals, 1 leading indicator)
“And also most important factor to sustain US business today is a fully vertical or backward integrated for all our key products. We are done for almost all our key products 45% of our volume products we are done.”
See the full cited Future Growth analysis of Viyash Scientific
What could break the thesis?
The company successfully cleared audits by key customers and maintained its 10 USFDA approved plants. Viyash completed 3 regulatory audits and 28 customer audits in Q4 FY25 without reported adverse findings. (5 stable, 1 high-severity)
“3 Regulatory Audits 45 Customer audits Facility Inspections”
Exceptional items remain a significant drag on reported profits, totaling INR 1,029 Mn for the combined entity in FY25, primarily driven by merger expenses and contractual bonuses. (2 intensifying, 3 easing, 2 high-severity)
“Net debt-to-EBITDA has reduced to less than 4x, a significant strengthening versus the previous year.”
See the full cited Risk analysis of Viyash Scientific
Read the full thesis on Viyash Scientific
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