SeQuent Scientific (NSE: SEQUENT) and Viyash Lifesciences merger gets NCLT approval, setting stage for India’s largest animal health platform

SeQuent Scientific Limited, listed on the National Stock Exchange of India under the symbol SEQUENT and on the BSE as 512529, has received formal approval from the National Company Law Tribunal for its proposed merger with Viyash Lifesciences Private Limited. The order was pronounced by the NCLT Hyderabad Bench on November 18, 2025, following several rounds of disclosures and hearings spread across the last 14 months. The merger includes multiple subsidiaries from both companies, including Symed Labs Limited, Sequent Research Limited, and other Viyash-affiliated pharmaceutical units.

What is the scale and financial performance of the combined SeQuent–Viyash entity in H1 FY26?

With the appointed date of the scheme fixed as April 1, 2025, SeQuent Scientific Limited has stated that further details including the Effective Dates 1 and 2 will be notified in due course as the merger progresses through final procedural milestones. The approval paves the way for the formal integration of assets, operations, and leadership structures across the broader SeQuent and Viyash ecosystem, which is now aiming to become the largest animal health company headquartered in India.

According to the combined unaudited pro forma results presented in the latest investor release, the merged entity recorded revenues of ₹8,521 million for Q2 FY26, which reflects a 16 percent increase compared to the same quarter last year. EBITDA during the quarter surged 76 percent to ₹1,890 million, resulting in a margin of 22.2 percent. For the half-year ended September 2025, the combined revenue stood at ₹16,462 million, up 12.6 percent year-on-year, while EBITDA expanded 48 percent to ₹3,180 million, with margins improving by 460 basis points to 19.3 percent.

How has the merger impacted SeQuent Scientific’s balance sheet strength and capital structure?

The financial performance is further supported by a sharp improvement in leverage metrics. The net debt to EBITDA ratio has been brought down to 0.7 times from 1.4 times in the previous year. Shareholders’ funds as of September 30, 2025, stood at ₹26,146 million, with a net debt of ₹4,095 million and a net debt to equity ratio of just 0.2 times. The return on capital employed and return on equity, excluding goodwill, were both reported at 13 percent, highlighting the financial stability of the combined platform.

What regions and segments are driving revenue growth for SeQuent and Viyash post-merger?

Operationally, both companies have contributed meaningfully to revenue diversification across key segments. SeQuent Scientific Limited’s sales reached ₹8,654 million in the first half of FY26, up 14 percent year-on-year. Viyash Lifesciences posted ₹7,808 million in H1 sales, up 11 percent year-on-year. In terms of regional distribution, Europe contributed ₹3,172 million in H1, showing 9 percent growth. Sales from emerging markets such as Brazil, Mexico, and select Asia-Pacific countries rose nearly 26 percent to ₹2,949 million. Indian operations contributed ₹625 million, a 6.8 percent growth over the previous year.

What long-term trends in the animal health industry are shaping this merger’s growth strategy?

According to SeQuent Scientific Limited, the merger was designed to address two secular themes shaping the animal health market globally. The first is the accelerating growth of the companion animal segment, especially in developed markets, driven by increased pet adoption and growing demand for chronic and specialty drugs. Conditions such as dermatitis, bone and joint disorders, diabetes, cardiology, and oncology in animals are beginning to mirror human health in terms of complexity and therapeutic response. The second structural opportunity stems from the genericization gap in animal health, which remains well behind human pharma in terms of cost-accessible alternatives. The newly combined entity aims to leverage its capabilities in active pharmaceutical ingredients and formulations to serve this unmet need, while also expanding its contract development and manufacturing services to global clients.

What are the combined operational capabilities of SeQuent and Viyash across APIs and formulations?

Viyash Lifesciences brings to the table a robust research and development capability with more than 200 scientists and nine manufacturing facilities that have received approvals from global regulators including the United States Food and Drug Administration. SeQuent Scientific Limited operates seven manufacturing plants across India, Spain, Brazil, and Turkey, all of which are accredited by agencies such as the European Union, World Health Organization, and other regulatory bodies. Together, the companies now produce over 1,000 finished dosage formulations across more than 90 countries and manage an active portfolio of 35 APIs sold in over 50 markets.

What are SeQuent Scientific and Viyash Lifesciences saying about the future of the combined business?

In a statement issued to investors, Dr Haribabu Bodepudi, the Founder and Chief Executive Officer of Viyash Lifesciences, highlighted that the integration plan had already delivered early synergies across manufacturing and customer onboarding. He noted that the merger had allowed the combined entity to emerge as a more agile and innovative global partner, capable of addressing both regulated and emerging markets through custom development, backward integration, and capacity scale-up. He also pointed to ongoing network optimization efforts that are aimed at improving supply chain efficiency and margin performance.

Echoing these sentiments, Mr Rajaram Narayanan, Managing Director and Chief Executive Officer of SeQuent Scientific Limited, called the merger a transformative event that would enable the company to deliver higher value to farmers, veterinarians, and pet owners across the globe. He emphasized that SeQuent Scientific Limited was now uniquely positioned to shape the next phase of innovation in animal healthcare and pharmaceutical services, backed by a disciplined focus on quality, cost, and speed to market.

How will SeQuent Scientific and Viyash Lifesciences execute their 12‑month synergy roadmap to scale manufacturing, integration and global regulatory expansion?

The merger integration process is expected to span the next 12 months, with clear milestones laid out for synergy realization, capacity ramp-up, and regulatory filings. Already, SeQuent Scientific Limited has commissioned a new production block to expand API capacity and has completed successful audits with no critical observations at its United States formulation site. The Sequent Research Limited facility recently underwent a United States Food and Drug Administration inspection, with the Establishment Inspection Report now awaited.

What are Viyash’s key regulatory and product development highlights in Q2 FY26?

Meanwhile, Viyash Lifesciences continued to demonstrate strong momentum in Q2 FY26, with key growth drivers including new product launches, deeper penetration into the contract development market, and a sharper product mix. In the latest quarter, Viyash completed four regulatory inspections, 56 customer audits, and filed nine global regulatory submissions including with the United States Food and Drug Administration, the Saudi Food and Drug Authority, the European Directorate for the Quality of Medicines, and the Therapeutic Goods Administration. The company also completed validations for two active pharmaceutical ingredients and has a strong pipeline of over 16 products in active research and development.

What is the investor sentiment around SeQuent Scientific after the Viyash merger approval?

Analysts tracking SeQuent Scientific Limited and the broader Indian animal health sector believe that the successful execution of this merger could trigger a rerating of the stock, especially as the entity pivots towards high-margin regulated markets and expands its contract manufacturing footprint. The improved leverage profile, diversified revenue mix, and robust regulatory track record may appeal to both domestic and foreign institutional investors looking for exposure to the animal health and CDMO opportunity out of India.

How does this merger reposition India in the global animal health and CDMO markets?

The merger also marks an important strategic signal for the Indian life sciences industry, which has traditionally focused on human health. With the animal health segment witnessing rapid evolution globally, the emergence of a homegrown full-stack player with global scale could position India as a credible manufacturing and innovation hub in this space.

SeQuent Scientific Limited has committed to providing further disclosures on the effective dates and operational timelines once the written NCLT order is uploaded and formalities are complete. Until then, the combined leadership has reiterated its focus on execution, synergy capture, and customer delivery as it moves into the final stages of integration.

What are the key takeaways investors should note from the SeQuent Scientific and Viyash Lifesciences merger approval and combined performance?

• The National Company Law Tribunal Hyderabad Bench has approved the merger between SeQuent Scientific Limited and Viyash Lifesciences Private Limited, clearing the final regulatory milestone.

• The combined entity reported revenues of ₹8,521 million in Q2 FY26 and ₹16,462 million in H1 FY26, reflecting strong year on year growth across both periods.

• EBITDA margins expanded sharply to 22.2 percent in Q2 FY26 and 19.3 percent in H1 FY26, supported by product mix improvements, operational leverage and integration benefits.

• The merged platform now has a net debt to EBITDA ratio of 0.7 times and a net debt to equity ratio of 0.2 times, indicating a significantly stronger balance sheet profile.

• Europe and emerging markets were the strongest contributors to revenue growth, with emerging markets delivering nearly 26 percent year on year expansion.

• SeQuent Scientific Limited has expanded capacity through a new production block and completed multiple audits including a successful United States Food and Drug Administration inspection at Sequent Research Limited.

• Viyash Lifesciences added regulatory momentum with four facility inspections, 56 customer audits and nine global filings in Q2 FY26 across agencies such as the United States Food and Drug Administration, the European Directorate for the Quality of Medicines and the Saudi Food and Drug Authority.

• The combined entity now benefits from more than 200 R and D scientists, nine United States Food and Drug Administration approved plants and a global commercial footprint spanning more than 90 countries.

• Management from both SeQuent Scientific Limited and Viyash Lifesciences has indicated that synergy realization, manufacturing optimisation and supply chain integration will be the core focus areas for the next 12 months.

• Analysts tracking the stock believe the merger could drive a valuation rerating as the entity scales its companion animal portfolio, expands its contract development pipeline and strengthens its regulated market presence.