Indoco Remedies (INDOCO) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw improved performance, especially in exports and API divisions, 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 on both sets of results.

• 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 product introductions remain robust.

• Q3 revenues grew 7% year-over-year, driven mainly by Export Formulations and API business.

Financial highlights

• Standalone net revenue for Q3 FY26 was INR 3,896 million, up 6.8% year-over-year but down 9% sequentially.

• Consolidated net revenue was INR 4,343 million, up 7.9% year-over-year and down 7.9% sequentially.

• 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 margin improved to 6.6% (INR 259 million) from 5.5% last year; consolidated EBITDA margin rose to 7.3% (INR 315 million) from 3%.

• 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.

• Domestic formulation revenue was INR 2,101 million, down from INR 2,241 million year-over-year.

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

• API business revenue grew 24% year-over-year to INR 344 million.

• Standalone EBITDA for Q3: ₹2,590 lakhs, up 29% YoY.

• Earnings per share (consolidated, Q3): ₹(3.20) basic and diluted.

Outlook and guidance

• Europe expected to see a strong Q4 as supply constraints ease, with long-term double-digit growth and margin improvement targeted.

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

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

• Margin improvement anticipated as remediation and one-time costs subside and product mix shifts to higher-value segments.

• Management highlights continued focus on export and API business as key growth drivers.