Indoco Remedies (INDOCO) Q3 25/26 earnings summary

Executive summary

• Q3 saw improved performance, especially in exports and APIs, with subsidiaries FPP (US) and Warren Remedies (OTC) showing strong growth.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2025 were approved, with statutory auditors issuing an unmodified opinion.

• Two new OTC toothpaste products launched in India, expanding the sensitivity and clean toothpaste segments.

• Domestic business was flat due to challenges in acute therapies, but prescription growth and new introductions remain robust.

• Patalganga API site received EIR for USFDA audit, and the company won a workplace award.

Financial highlights

• Standalone Q3 revenue: ₹38,957 lakhs, up from ₹36,491 lakhs YoY; consolidated Q3 revenue: ₹43,434 lakhs, up from ₹40,245 lakhs YoY.

• Standalone EBITDA for Q3: ₹2,590 lakhs, up 29% YoY; standalone EBITDA margin improved to 6.6% (₹259 million) from 5.5% YoY; consolidated EBITDA margin rose to 7.3% (₹315 million) from 3% YoY.

• Standalone Q3 net loss: ₹2,000 lakhs vs. net profit of ₹1,505 lakhs YoY; consolidated Q3 net loss: ₹2,945 lakhs vs. net loss of ₹2,840 lakhs YoY.

• International formulation revenues grew 26.2% YoY to INR 1,356 million; US up 21.6%, Europe up 36.9%, emerging markets up 26.8%.

• API business revenues grew 24% YoY to INR 344 million.

Outlook and guidance

• Expecting improved performance in Europe in Q4 as supply constraints ease and new approvals come through.

• European business targeted to grow at 20%+ annually, with aspirations to reach INR 400-500 crore by FY28-29.

• OTC business expected to grow at least 30% next year, driven by brand extensions and increased marketing.

• API business anticipated to ramp up further as new sites are validated and approved, with internal transfers already at INR 200 crore run rate.

• Company continues to monitor regulatory changes, especially the impact of new labour codes.