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2025-09-04 02:28:51 pm | Source: Motilal Oswal Financial Services Ltd
Company Update : IPCA Laboratories Ltd By Motilal Oswal Financial Services Ltd
Company Update : IPCA Laboratories Ltd By Motilal Oswal Financial Services Ltd

Misses estimates; branded exports & Unichem drag profitability

  • IPCA’s sales grew 10.3% YoY to INR23b (our est: INR23.7b) in 1QFY26.
  • Formulations sales grew 11% YoY to INR14b (62% of sales).
  • Exports of formulation sales grew 13.7% YoY to INR4.4b (20% of total sales).
  • Domestic formulation sales grew 10% YoY to INR9.6b (42% of total sales).
  • Exports (generic formulation) grew 19% YoY to INR2.7b (60% of export sales).
  • Exports (branded formulation) rose 9.6% YoY to INR1.2b (28% of export sales).
  • Exports (institutional sales) were flat YoY at INR580m (12% of export sales).
  • API sales grew 13% YoY to INR3.3b (14% of sales).
  • Export API sales grew 28% YoY to INR2.5b (77% of API sales).
  • Domestic API sales declined 18% YoY to INR760m (23% of API sales).
  • Revenue from subsidiaries grew 7% YoY to INR5.6b (24% of sales).
  • Gross margin (GM) expanded 80bp YoY to 70%, due to superior product mix/lower RM costs.
  • However, EBITDA margin contracted 70bp YoY to 18% (our est: 20.7%), as higher GM was offset by higher opex (other expenses up 130bp YoY as % of sales).
  • EBITDA grew 6% YoY to INR4.2b (our est: INR4.9b).
  • PAT grew 21% YoY to INR2.3b (our estimate: INR2.8b).
  • Unichem financials: Sales came in at INR5.3b, up 18% YoY. EBITDA margin at 4.3%, down 550bp YoY. Loss of INR105m in 1QFY26 vs PAT of INR93m YoY.
  • Revenue/EBITDA/ PAT missed BBG estimates by 1%/10%/5% for 1QFY26.

 

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