Indoco Remedies (INDOCO) Q2 25/26 earnings summary

Executive summary

• India business saw strong growth in anti-infective and respiratory segments, with several new product launches including antibiotics and dental formulations.

• USFDA completed inspection of API facility with zero observations; final ANDA approval received for Rivaroxaban tablets in the US.

• Q2 FY26 consolidated revenue grew 8.8% year-over-year to ₹4,293 mn, with EBITDA at ₹534 mn, up slightly from ₹529 mn last year.

• International formulation and API businesses showed strong growth, while India formulation was impacted by GST rate revisions.

• Q2 FY26 marks a recovery after a challenging prior half-year due to plant shutdowns, with management confident of sustained improvement.

Financial highlights

• Standalone net revenues for Q2 FY26 were INR 4,293 million, up 8.8% year-over-year and 11.3% sequentially.

• Consolidated net revenues reached INR 4,718 million, up 9.6% year-over-year and 9.5% sequentially.

• Standalone EBITDA margin was 12.4% (INR 534 million), slightly down from 13.4% last year but up from 3.8% in the previous quarter.

• Consolidated EBITDA margin was 9.1% (INR 431 million), up from 4.1% in the previous quarter.

• Standalone net profit for Q2 FY26: ₹1,505 lakhs, compared to ₹1,279 lakhs in Q2 FY25.

Outlook and guidance

• Double-digit growth expected in Europe-UK business from Q3 onwards, with margin improvements anticipated.

• Management expects recovery in India formulation business and continued growth in international markets.

• Other expenses to remain slightly elevated due to USFDA remediation and sales promotion, but efforts are ongoing to control recurring costs.

• CapEx for the next three years expected to be maintenance-focused, around INR 50 crore annually.

• Management targets INR 3,500 crore revenue in three years, with INR 5,000 crore target delayed by 18 months beyond 2027.