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 notable growth.

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

• 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.

• Domestic business was flat due to challenges in acute therapies, but prescription growth and new product introductions contributed positively.

• The company received the EIR for its Patalganga API site from USFDA and was recognized as a Most Preferred Workplace.

Financial highlights

• Standalone net revenues for Q3 FY26 were INR 3,896 million, up 6.8% year-over-year but down 9% sequentially; consolidated net revenues were 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 was 6.6% (INR 259 million), up from 5.5% last year; consolidated EBITDA margin was 7.3% (INR 315 million), up from 3% last year.

• 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 revenues were INR 2,101 million, down from INR 2,241 million year-over-year; international formulation revenues grew 26.2% to INR 1,356 million.

Outlook and guidance

• Europe business expected to grow at 20%+ annually over the next few years, with revenue targets of INR 400-500 crore by FY28-29.

• 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 new product launches and operational efficiencies take effect.

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