Indoco Remedies (INDOCO) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached ₹43,789 lakhs, up 12.5% sequentially and slightly above the same quarter last year.

• EBITDA for the quarter was ₹148 million, a significant increase from ₹35 million in the previous quarter, reflecting operational improvements.

• The company reported a consolidated net loss of ₹3,635 lakhs for the quarter, compared to a net profit of ₹182 lakhs in the same quarter last year.

• Phase 1 of the master manufacturing program rolled out, driving a 26% increase in international solid oral exports.

• Remediation at Goa Plant II is nearing completion; FDA allowed partial restart, and European authorities approved sterile supply.

Financial highlights

• Revenue from operations for the quarter was ₹42,908 lakhs, up from ₹38,389 lakhs in the previous quarter.

• Standalone net revenue for Q1 FY26 was INR 3,838 million, down from INR 3,942 million YoY but up 12.5% sequentially.

• Standalone EBITDA margin was 3.9% (vs. 13.1% YoY); consolidated EBITDA margin was 4.1% (vs. 11.3% YoY), both improved sequentially.

• OTC revenue for the quarter was INR 31.6 crore, with over 46% growth QoQ.

• Total expenses increased to ₹47,618 lakhs, up from ₹43,775 lakhs sequentially.

Outlook and guidance

• All four plants under the master manufacturing plan are expected to be fully operational by Q3 FY26.

• Remediation at Goa Plant II expected to complete by August, with FDA audit request likely from September.

• Europe supply expected to normalize by Q3, with new sterile product opportunities opening up.

• Management expressed confidence in sustaining revenue growth momentum and achieving a turnaround in profitability in upcoming quarters.

• Quarter-on-quarter improvement in performance anticipated.