Ipca Laboratories (IPCALAB) Q4 24/25 earnings summary

Executive summary

• Domestic business grew 11% in Q4 and 12% for FY25, outpacing market growth and gaining market share, especially in metro cities.

• Export formulation business saw 10% growth in branded formulations and 15% in generics for Q4; full-year branded business grew 7%.

• 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.

• Unichem subsidiary delivered 18% revenue growth and significant EBITDA margin improvement.

Financial highlights

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

• Standalone FY25 EBITDA margin at 22.66%, up from 19.29% YoY; EBITDA up 27%.

• Consolidated Q4 EBITDA margin at 18.24% (vs. 14.98% YoY); consolidated FY25 EBITDA margin at 18.94% (vs. 16.72% YoY).

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

• API business grew 2% in Q4 and 1% for the year; generic business growth impacted by South Africa tender losses.

Outlook and guidance

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

• Unichem expected to grow 8-10% in revenue and improve EBITDA margin by 1% in FY26.

• API business projected to grow 6-7% in FY26; generic and institutional businesses to grow around 8-10%.

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

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