IGI Logo

Key Conference Call Highlights

Formulations Business

* The company maintained its 16th rank in Indian pharmaceutical market and marginally improved market share to 2.09%, reflecting a sustained execution across key brands.

* Export formulations business was led by a strong traction in CIS markets, French-speaking Africa, Europe, Australia, New Zealand and new US product launches.

* The company plans to maintain a focussed domestic launch strategy with 18–20 products annually, prioritising power brands and avoiding excessive portfolio proliferation.

* At present, IPCA markets 8 products in the US generics business and plans to commercialise another 6–8 products in FY27E, while continuing to launch 3–4 products annually across Europe and other generic markets.

API Business

* The management highlighted a sharp increase in raw material and solvent cost, with solvent prices rising 40–50% from January levels and several APIs witnessing significant cost inflation due to supplychain disruption.

* The company successfully passed on API cost inflation to customers and does not forecast a meaningful impact on profitability from higher input cost.

* The US API facility is seeing improved order inflows and is projected to deliver further operational improvement going into FY27E.

Unichem Labs

* Unichem's performance remained subdued in FY26 as its US business lost market share in certain high-volume products.

* The management indicated that market share recovery has already begun in the US business and projects around 10% growth from the US segment in FY27E.

* The closure of the Ireland manufacturing facility and the transfer of production back to India is anticipated to enhance profitability through lower operating costs and manufacturing efficiency.

* Targeting to launch five to six products in FY27E, supported by a strong development pipeline.

* The management forecasts Unichem's EBITDA margin to recover to 12–13% in FY27E.

Outlook

* The management has guided for consolidated revenue growth of 12–13% in FY27E, supported by healthy growth across domestic formulations, exports, generics, APIs and Unichem.

* Consolidated EBITDA margin is guided to improve to approximately 22–22.3% in FY27E.

* Export formulations revenue is projected to grow 12–13% in FY27E in INR terms, aided by continued momentum in CIS markets, Africa and generics.

* Domestic formulations are anticipated to grow around 12% in FY27E, with 1–2% growth coming from new product launches and the remainder driven by pricing and volume expansion.

* The new US formulations facility remains on track for commissioning in Q4FY27E, with meaningful revenue contribution expected from FY28.

* The management expects continued margin improvement from favourable business mix, higher contribution from chronic therapies, growing generics revenues and recovery in the Unichem business.

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer
SEBI Registration no.: INZ 000160131