Innova Captab (INNOVACAP) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 revenue grew 19.5% YoY to ₹380.381 crore and ₹731.923 crore, respectively; EBITDA rose 8% and 17%, while PAT declined 15.2% and 5.9%.

• Growth reflected expansion in Branded Generics and CDMO, despite falling API prices; Jammu ramp-up and a reduced GST incentive weighed on near-term outlook.

Financial highlights

• Consolidated Q2 revenue was ₹380.381 crore versus ₹318.203 crore; H1 revenue was ₹731.923 crore versus ₹612.473 crore.

• EBITDA was ₹56.1 crore in Q2 versus ₹51.9 crore and ₹112.6 crore in H1 versus ₹96.2 crore; margins were 14.7% and 15.4%.

• Consolidated PAT was ₹29.670 crore in Q2 versus ₹35.004 crore and ₹60.685 crore in H1 versus ₹64.481 crore.

• Consolidated EPS was ₹5.18 in Q2 versus ₹6.12 and ₹10.60 in H1 versus ₹11.27.

• Exports contributed 30% of revenue in both Q2 and H1 FY26.

Outlook and guidance

• FY26 Jammu revenue guidance was reduced from ₹400 crore to ₹270–280 crore, with H1 revenue of ₹120 crore and lower API prices among the cited factors.

• Long-term targets include 20%+ growth and doubling revenue, EBIT and PAT over three years; Jammu revenue above ₹1,000 crore is targeted in three years.

• Jammu ramp-up is expected over 2–3 years, with optimum utilization in 5–6 years; 65%–70% utilization could support revenue above ₹1,400 crore.

• Sustainable 15% margins are expected once Jammu turnover stabilizes above breakeven; near-term margins face GST changes and repricing.

• Existing capacity is expected to meet demand; utilization at Baddi and Dehradun/Taloja is expected to rise to 70%–75%.