Indegene (INDGN) Q2 26/27 earnings summary

Executive summary

• Q2 revenue was ₹11,223m, up 39.5% YoY and 5.6% QoQ; H1 revenue reached ₹21,854m and PAT ₹2,285m.

• Growth broadened across client tiers: 107 active clients, including 59 generating $1M+ revenue; large-account expansion and AI-enabled wins supported momentum.

• Management expects H2 FY27 to be stronger than H1, with growth and margin expansion converging.

• Limited reviews of the consolidated and standalone results carried unmodified conclusions.

Financial highlights

• Q2 revenue was ₹11,223m ($117.5m), up 39.5% YoY and 5.6% QoQ in INR, and 27.5% YoY and 4.4% QoQ in USD.

• EBITDA was ₹1,873m, up 32.0% YoY; margin was 16.7%, down 1.0 pts YoY and 0.2 pts QoQ. Wage increases reduced margin by ~150 bps, largely offset by productivity and FX.

• PBT was ₹1,474m, up 10.7% YoY; PAT was ₹1,123m, up 10.0% YoY, with a 10.0% margin and 23.8% effective tax rate.

• H1 revenue was ₹21,854m, up 39.6% YoY in INR and 27.0% in USD; H1 PBT was ₹3,001m and PAT ₹2,285m.

• Q2 depreciation and amortization rose 98.5% YoY to ₹464m; interest income fell 44% QoQ to ₹134m from ₹237m.

Outlook and guidance

• No formal guidance; goals remain FY27 organic growth above FY26 and quarterly EBITDA margin of 19%+ by Q4.

• Management expects EBITDA to grow faster than revenue as wage increases are fully in the cost base; productivity and operating leverage are expected to support Q3 and Q4 margins.

• Lower amortization and higher investment yields are expected to support PAT-margin expansion; D&A is expected to decline ₹56m per quarter in Q3 and Q4 versus Q2.

• Tectonic and outcome-based contract ramp-ups are expected to contribute to margin expansion; the $10m outcome-based contract is expected to have its largest revenue contribution in Q4, subject to outcomes and customer confirmation.