Indoco Remedies (INDOCO) investor relations material

Executive summary

• Q3 FY26 saw improved performance, especially in exports and APIs, with subsidiaries FPP (US) and Warren Remedies (OTC) showing strong growth.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2025 were approved, with statutory auditors issuing an unmodified opinion on both sets of results.

• Two new OTC toothpaste products launched in India, expanding the sensitivity and clean toothpaste segments.

• Domestic business was flat due to challenges in acute therapies, but prescription growth and secondary sales remained robust.

• Indoco advanced one rank in the IQVIA prescription audit, now 21st with 10.86 crore prescriptions, surpassing Pfizer.

Financial highlights

• Standalone net revenues for Q3 FY26 were INR 3,896 million, up 6.8% YoY but down 9% sequentially; consolidated net revenues were INR 4,343 million, up 7.9% YoY and down 7.9% sequentially.

• Standalone Q3 revenue: ₹38,957 lakhs, up from ₹36,491 lakhs YoY; consolidated Q3 revenue: ₹43,434 lakhs, up from ₹40,245 lakhs YoY.

• Standalone Q3 net loss: ₹2,000 lakhs vs. net profit of ₹1,505 lakhs YoY; consolidated Q3 net loss: ₹2,945 lakhs vs. net loss of ₹2,840 lakhs YoY.

• Standalone EBITDA margin was 6.6% (INR 259 million), up from 5.5% YoY but down from 12.4% sequentially; consolidated EBITDA margin was 7.3% (INR 315 million), up from 3% YoY.

• International formulation revenues grew 26.2% YoY to INR 1,356 million; US up 21.6%, Europe up 36.9%, emerging markets up 26.8%.

Outlook and guidance

• Europe expected to see a strong Q4 as customer approvals and manufacturing delays resolve; management targets 20%+ annual growth in Europe over the next few years, aspiring to INR 400-500 crore by FY28-29.

• OTC business projected to grow at least 30% next year, driven by new launches and increased marketing.

• API business expected to ramp up further as new sites are validated, with internal transfers already at INR 200 crore run rate.

• Management highlights continued focus on export and API business as key growth drivers.

• Margins expected to stabilize at 13-14% in the next couple of years, with potential to improve further.