Ipca Laboratories (IPCALAB) Q4 24/25 earnings summary

Executive summary

• Domestic business grew 11% in Q4 and 12% for FY25, with market share gains and strong performance in both acute and chronic segments.

• Standalone net total income rose 8% to Rs. 6,749.21 crore for FY25; consolidated net total income up 15% to Rs. 9,032.39 crore year-over-year.

• Standalone net profit before exceptional items increased 40% to Rs. 932.30 crore; consolidated net profit before exceptional items up 56% to Rs. 992.58 crore for FY25.

• Ranked 16th by IQVIA, fastest-growing among top 20, with metro city market share rising to 37.52%.

• Export formulation business grew 10% for FY25; branded formulations up 3% in Q4, generics up 15% in Q4.

Financial highlights

• Standalone Q4 EBITDA margin improved to 21.19% from 18.5% YoY; absolute EBITDA up 24%.

• FY25 standalone EBITDA margin at 22.66%, up from 19.29% YoY; consolidated EBITDA margin at 18.94%, up from 16.72%.

• Standalone net profit after tax and exceptional items was Rs. 650.76 crore, up 23% year-over-year; consolidated net profit after tax and exceptional items was Rs. 737.68 crore, up 35%.

• Unichem delivered 18% revenue growth and EBITDA margin improved from 4.87% to 12.55%.

• Q4 FY25 standalone net profit before exceptional items up 36% to Rs. 216.49 crore; consolidated net profit before exceptional items up 94% to Rs. 270.83 crore.

Outlook and guidance

• FY26 revenue growth guidance of 8-10% at group level, with consolidated EBITDA margin expected to improve by 1% to ~20%.

• Domestic business expected to grow 1.5x market rate over next 3-4 years.

• API business guided for 6-7% growth in FY26.

• Generic and institutional businesses expected to grow 8-10% in FY26.

• Board proposed to alter the Object Clause of the Memorandum of Association to include green energy generation activities, pending shareholder approval.