Hikal shares fall over 2% after firm reveals discrepancies in revenue reporting

Hikal shares fall over 2% after firm reveals discrepancies in revenue reporting

Hikal shares fell 2.3% on December 29 after the pharmaceuticals and crop protection company revealed discrepancies in revenue reporting due to some employees' misconduct and confirmed the reversal of Rs 80.7 crore in revenue for September quarter.

The company said on December 26 that discrepancies in its revenue reporting spanning the last three quarters were identified during an internal fact-finding review.

The company suspects misconduct by employees in roles connected to sales and operational support.

"The Company confirms that there is no siphoning/ embezzlement or misappropriation of funds of the Company," said Hikal in a stock exchange filing.

If the irregularities had not occurred, sales would have been lower by approximately 2% in Q4FY25 and Q1FY26, said the company, adding that all the underlying sales are genuine and are backed by customer purchase orders.

At 11 am on December 29, Hikal shares were trading 2.5% lower at Rs 228.22 apiece. So far in 2025, the stock fell 41.5%.

Last month, the company reported a consolidated revenue of Rs 316 crore for Q2, marking a 30% year-on-year decline from Rs 451 crore in the same quarter last year.

Hikal reported a net loss of Rs 34.90 crore in Q2, compared to a profit of Rs 18.30 crore in the same period last year.