Pharmaceutical and specialty chemicals company Hikal Ltd on Friday disclosed that it has identified certain irregularities during an internal fact-finding review, primarily related to revenue recognition and supporting documentation for specific periods.
In a regulatory filing to the BSE and NSE, the company said the matter involves suspected misconduct by certain employees and is being treated as an internal misconduct case. The review covers transactions related to Q4 FY25, Q1 FY26 and Q2 FY26.
Impact on financials
Hikal clarified that the issue is expected to affect only the timing and recognition of revenue, and not the genuineness of underlying sales. The company said that, had the irregularities not occurred, reported sales would have been around 2% lower in Q4 FY25 and Q1 FY26.
The company has already reversed revenue of ₹80.7 crore in Q2 FY26 as part of corrective action. It added that all sales are backed by valid customer purchase orders and confirmed that no siphoning, embezzlement or misappropriation of funds has been detected.
Employees under scrutiny
According to the disclosure, the suspected misconduct involves certain employees across operational functions, including sales and marketing, logistics, and allied departments.
Reporting to authorities
Hikal said it is currently evaluating regulatory reporting requirements and will take appropriate steps to inform relevant authorities, if required, after seeking legal advice.
The company emphasised that the matter emerged from an internal review process and continues to be examined to ensure full compliance with applicable laws and regulations.
