Indoco Remedies (INDOCO) Q4 25/26 earnings summary

Executive summary

• Achieved a return to positive performance after six quarters, driven by strong international formulations growth in both regulated and emerging markets.

• Q4 FY26 revenues grew 26% year-over-year to ₹4,291 mn, with full-year revenues reaching ₹16,335 mn, up from ₹14,948 mn in FY25.

• EBITDA margin for Q4 improved to 14.7% (₹630 mn) from 1.0% (₹35 mn) YoY; full-year EBITDA margin rose to 9.6% (₹1,572 mn) from 8.6% (₹1,280 mn).

• Domestic business was muted due to unfavorable seasonality, especially in anti-infectives and respiratory segments, but core brands showed robust prescription growth.

• Board recommended a dividend of ₹0.20 per equity share for FY26, subject to AGM approval.

Financial highlights

• Standalone Q4 net revenues: INR 4,291 million, up 25.8% YoY and 10.1% sequentially; consolidated Q4 net revenues: INR 4,559 million, up 18.8% YoY and 5% sequentially.

• Standalone Q4 net profit: ₹2,735 lakhs; full-year net loss: ₹566 lakhs. Consolidated Q4 net loss: ₹2,368 lakhs; full-year net loss: ₹9,870 lakhs.

• Standalone EBITDA margin: 14.7% (INR 630 million) vs. 1% (INR 35 million) YoY; consolidated EBITDA margin: 10.9% (INR 497 million) vs. -0.2% (INR -8 million) YoY.

• Domestic formulation revenues: INR 1,739 million, slightly down YoY; international formulation revenues grew 94.6% to INR 2,147 million.

• Services (CRO and analytical): INR 895 million, up 65.3% YoY.

Outlook and guidance

• Expect continued growth in international markets, especially with new launches in liquid orals in US and Europe.

• Margin improvement anticipated in Europe due to manufacturing efficiency and completed scale-ups.

• Domestic business expected to grow in line with IPM, with new launches contributing significantly.

• No major CapEx planned for the next two years; focus on debt reduction and operational efficiency.