Ipca Laboratories (IPCALAB) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 standalone revenue from operations rose 17% YoY to ₹2,255.61 crore; consolidated revenue increased 14% to ₹2,909.94 crore.

• H1 FY27 standalone and consolidated net profit after tax increased 34% to ₹760.58 crore and 51% to ₹777.02 crore, respectively.

• Q2 consolidated EBITDA margin rose to 22.97% from 21.68%; standalone margin increased to 26.61% from 25.46%, excluding forex gains/losses, other income and exceptional items.

Financial highlights

• Q2 standalone net profit after tax was ₹387.29 crore, up 27% YoY; consolidated net profit attributable to owners was ₹375.13 crore, up 33%.

• H1 revenue from operations grew 19% standalone to ₹4,374.85 crore and 17% consolidated to ₹5,698.04 crore.

• Q2 standalone EBITDA before forex, other income and exceptional items rose 22% to ₹600.22 crore; consolidated EBITDA on the same basis increased 21% to ₹668.27 crore.

• H1 standalone EBITDA on the same basis rose 27% to ₹1,157.04 crore; consolidated EBITDA increased 33% to ₹1,306.21 crore.

• Q2 EPS after exceptional items was ₹15.27 standalone and ₹14.79 consolidated; H1 EPS was ₹29.98 and ₹30.63, respectively.

Outlook and guidance

• FY27 growth guidance remains 14%-16% and consolidated EBITDA margin guidance 22%-23%, with no revision; consolidated margin is expected to improve 1%-1.25% annually and standalone margin ~1.5% annually.

• Institutional sales may reach ₹325-340 crore this year, above the earlier ₹300 crore guidance; management cautioned growth may ease next year.

• Pain portfolio growth of 14%-15% is expected to continue over the next 3-4 years; umbrella brand sales have exceeded ₹1,500 crore.