IPCA Laboratories

Ipca Laboratories reported quarterly results with domestic business growing 10% and maintaining its 16th rank per IQVIA. Market share increased from 2.01% to 2.08% compared to the previous year. Export business showed strong performance with branded formulations growing 10% to Rs. 124 crores and generic business up 15% to Rs. 326 crores. API business delivered 12% growth driven by Europe and Latin America markets. Standalone EBITDA margins improved to 23.82% from 22.22%, while consolidated margins declined slightly to 18.39% from 18.52%. Standalone net profit increased 26% to Rs. 262 crores, with consolidated net profit up 18% to Rs. 234 crores. Unichem faced challenges with margin pressures due to lost market share on profitable products in the US, business decline in Myanmar and Brazil, plus additional provisions of Rs. 12 crores for currency fluctuation and Rs. 10 crores for Ireland facility closure. The company added 400 people to its cardiovascular division, causing temporary growth slowdown in that therapy area. Management revised full-year guidance, maintaining 9-10% topline growth but reducing EBITDA margin improvement expectation from 100 basis points to 75 basis points.

IPCA Labs has revised its consolidated EBITDA margin guidance downward, now expecting a 75 basis points improvement compared to the original 100 basis points target. The company's management projects 9-10% overall topline growth for FY26. In the US market, IPCA Labs plans to launch 5-6 products annually and has completed one filing in Q1, with 15-16 products currently under various stages of development. The company's previous guidance for Unichem to achieve Rs 300 crores EBITDA this year is no longer expected to be met, though improvement is anticipated in coming quarters.