Indoco Remedies (INDOCO) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 7.4% YoY to ₹50,692 lakhs; H1 revenue grew 7.8% to ₹97,314 lakhs. Consolidated EBITDA margin was 9.2% in Q2 and 9.0% in H1.

• International formulations, API and allied services grew, while domestic formulations faced seasonal weakness. Consolidated net profit was ₹1,947 lakhs in Q2, including exceptional gains.

Financial highlights

• Consolidated Q2 revenue was ₹50,692 lakhs versus ₹48,467 lakhs YoY; H1 revenue was ₹97,314 lakhs versus ₹90,270 lakhs.

• Standalone net revenue was ₹4,381 million, up 2% YoY; standalone revenue from operations including other operating income was ₹45,159 lakhs in Q2 and ₹86,056 lakhs in H1.

• Standalone EBITDA was ₹403 million, or 9.2% of net sales, versus ₹534 million and 12.4% YoY; Q1 EBITDA was ₹422 million, or 10.3%.

• Consolidated EBITDA was ₹464 million, or 9.2% of net sales, versus ₹431 million and 9.1% YoY; H1 EBITDA was ₹875 million, or 9.0%, versus ₹606 million and 6.7%.

• Consolidated profit before exceptional items and tax was a loss of ₹1,295 lakhs in Q2; after exceptional items, profit before tax was ₹2,419 lakhs. Standalone Q2 net profit was ₹3,063 lakhs.

Outlook and guidance

• Domestic FY27 high-single-digit growth guidance was maintained; management expects more predictable H2 sales, with seasonal portfolio weakness and divested ophthalmic sales weighing on performance.

• Export revenue is expected to achieve double-digit FY27 growth, supported by regulated markets and a potential H2 catch-up in emerging markets.

• Europe and UK regulated-market growth target is 20%+ over the next one to two years; emerging markets are expected to improve from Q3, with Q4 typically stronger.

• H2 priorities include strengthening domestic brands, accelerating international growth, improving operating efficiency and disciplined resource allocation.

• Management emphasized operational efficiency and a resilient, diversified pharmaceutical business for sustainable long-term growth.