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Indoco Remedies revenues grew ~9% to ₹ 466 crore

ICICIdirect Research 29 Jul 2026 DISCLAIMER

News: Indoco Remedies revenues grew ~9% to ₹ 466 crore on the back of ~43% growth in APIs. On the other hand, flagship segments were muted. While export formulations grew only ~4% to ~₹ 145 crore due to 2% de-growth in the Regulated Market(US & Europe), Domestic formulations grew only 2% ~₹238 crore. On the operational front, GPM declined 298 bps YoY to 66.2% due to unfavourable product mix while EBITDA margins improved to 8.8% (477 bps YoY) mainly due to a reduced employee expenses and other expenses.

View: Exports growth lagged this quarter because of shipment timing and rolling order execution in Europe and temporary weakness in the branded business of emerging markets. The management expects a better growth in the coming quarters thanks to the completion of Master Manufacturing Plan (MMP) rollout in four of its large Oral Solid plants. Although USFDA inspection is still pending, the regulator has allowed company to start production at two lines which should continue to drive traction in near term. The management expects gradual transition to normal growth path and cost reduction, going ahead. Disappointment on the domestic front continues through, but the management expects a growth similar to IPM for coming year. Overall, normalcy restoration is still work in progress. We continue to monitor the next few quarters to assess the progress

Impact: Negative

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