Indegene (INDGN) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 revenue reached INR 10,631 million ($112.5 million), up 39.7% year-on-year and 6% quarter-on-quarter, marking the strongest first-quarter sequential growth in four years.

• Active client base expanded to 105, up 50% year-over-year, with 14 new clients added sequentially.

• Revenue per employee rose to $77,100, a 14.2% increase year-over-year, reflecting improved productivity.

• EBITDA margin stood at 16.9%, and PAT margin at 10.9%, both improving sequentially.

• The company continues to invest in AI-driven solutions and technology, expanding offerings and deepening client relationships.

Financial highlights

• EBITDA for Q1 FY 2027 was INR 1,795 million at a margin of 16.9%, up 50 bps quarter-on-quarter and 8.9% sequentially.

• PAT was INR 1,162 million, stable year-over-year but up 45.9% sequentially, with PAT margin at 10.9%.

• Cash and cash equivalents plus investments stood at INR 14,602 million at quarter end.

• Operating expenses for the quarter were INR 9,394 million, up from INR 6,308 million year-over-year.

• DSO (net of unearned and unbilled revenue) was 67 days, up four days quarter-on-quarter and improved by four days year-over-year.

Outlook and guidance

• Organic growth in FY 2027 expected to surpass FY 2026, with acceleration anticipated in H2.

• Margin normalization to historical 19%-20% EBITDA range projected by Q4 FY 2027 as large outcome-based deals begin to be recognized.

• Management expects further operating leverage and profitability improvements in the second half as recent investments mature.

• Board proposed a final dividend of INR 2.25 per equity share for FY26, subject to shareholder approval.

• Focus remains on deepening existing client relationships and converting pipeline opportunities.