Ipca Laboratories (IPCALAB) Q2 24/25 earnings summary

Executive summary

• Domestic formulation business grew 11% in Q2 FY25, outpacing the Indian pharma market (IPM) growth of 8% and increasing market share to 2.14% from 2.04% year-over-year.

• Standalone net total income rose 8% year-over-year to Rs. 1,827.94 crore in Q2 FY25; consolidated net total income increased 15% to Rs. 2,381.16 crore.

• Standalone net profit after exceptional items grew 51% to Rs. 244.12 crore; consolidated net profit after exceptional items surged 58% to Rs. 229.48 crore.

• Acute and chronic segments saw strong growth, with chronic segment up 17% versus market growth of 10%.

• Export formulation business grew 15% in the quarter, with institutional business up 85% and branded promotional business down 2%.

Financial highlights

• Standalone EBITDA margin for Q2 FY25 was 22.89%, up from 20.86% last year; consolidated EBITDA margin was 19.10%, up from 17.64%.

• Margin improvement attributed to better product mix, lower input costs, and reduced overheads.

• Standalone EPS after exceptional items was Rs. 9.62, up 51% year-over-year; consolidated EPS was Rs. 9.05, up 58%.

• For H1 FY25, standalone net total income increased 6% to Rs. 3,409.19 crore; consolidated net total income rose 21% to Rs. 4,494.40 crore.

• Standalone net profit for H1 FY25 was Rs. 448.25 crore, up 36%; consolidated net profit was Rs. 421.72 crore, up 37%.

Outlook and guidance

• FY25 standalone EBITDA margin expected around 22%, above previous 21% guidance; consolidated margins also expected to be better.

• Full-year consolidated revenue growth revised to 9-10% from earlier 10-11% guidance.

• Unichem revenue for FY25 expected at INR 1,850-1,900 crore, slightly below earlier INR 2,000 crore guidance.

• India business guidance maintained at 11-12% growth for FY25.

• Generic business expected to grow 10-12% for FY25, with stronger H2 performance.