Ipca Laboratories (IPCALAB) Q1 26/27 earnings summary

Executive summary

• Domestic formulation business grew 13% year-over-year to INR 1,082 crore, with market share improving to 2.08%.

• Export business rose 34% to INR 935.39 crore, driven by strong growth in Europe and institutional generics.

• Consolidated revenue increased 21% year-over-year to INR 2,788 crore, with EBITDA margin improving to 22.88%.

• Standalone net profit grew 42% to INR 373.29 crore; consolidated net profit surged 80% to INR 422.81 crore year-over-year.

• Chronic segment grew 17.2%, acute segment 8.9%, both outperforming the market.

Financial highlights

• Standalone EBITDA margin improved to 26.27% in Q1 FY27, with absolute EBITDA at INR 638 crore, up 50% year-over-year.

• API business grew 30% to INR 424 crore.

• Institutional generic business surged 107% to INR 111.75 crore due to shipment timing.

• Material cost to sales ratio decreased by 1.35% on a consolidated basis.

• Standalone and consolidated EPS increased significantly year-over-year.

Outlook and guidance

• FY27 revenue growth guidance revised upward to 14%-16% from 12%-13%, driven by strong generic and India business.

• EBITDA margin guidance raised to 23% for FY27, up from 22%.

• Institutional business expected to grow in single digits, with annual revenue between INR 260-300 crore.

• Unichem guidance remains at 10% revenue growth and 13% EBITDA margin.

• Medium-term consolidated EBITDA margin expected at 25%-26%.