IOL Chemicals and Pharmaceuticals Reports Strong Q1 Performance, Plans UK Subsidiary and Minoxidil Production
IOL Chemicals & Pharmaceuticals announced strong Q1 results with a 9.8% revenue increase to ₹551.69 crore and a 14.5% rise in net profit to ₹34.00 crore. The company's EBITDA grew to ₹62.10 crore with an improved margin of 11.3%. The pharmaceutical segment led revenue generation at ₹329.33 crore. The Board approved establishing a wholly-owned subsidiary in the UK and plans to manufacture Minoxidil with a 120 MTPA capacity at a new Unit 9B, investing ₹5.50 crore from internal funds. The project is set for completion by December 2025.

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IOL Chemicals & Pharmaceuticals has announced robust financial results for the first quarter, along with strategic expansion plans that include establishing a wholly-owned subsidiary in the United Kingdom and initiating production of Minoxidil.
Financial Performance
The company reported a consolidated revenue of ₹551.69 crore for the quarter, marking a 9.8% increase from ₹502.38 crore in the same period last year. This growth was driven by strong performances in both the chemical and pharmaceutical segments.
IOL Chemicals & Pharmaceuticals' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant rise to ₹62.10 crore, up from ₹50.80 crore in the corresponding quarter of the previous year. The EBITDA margin improved to 11.3% from 10.11%, indicating enhanced operational efficiency.
Net profit for the quarter stood at ₹34.00 crore, showing a 14.5% increase from ₹29.70 crore in the year-ago period. The company's earnings per share (EPS) for the quarter was ₹5.78, compared to ₹5.05 in the same quarter of the previous fiscal year.
Segment-wise Performance
Segment | Revenue (₹ crore) | Profit before tax and interest (₹ crore) |
---|---|---|
Chemical | 281.06 | 5.91 |
Pharmaceutical | 329.33 | 40.09 |
The pharmaceutical segment continued to be the primary revenue driver, contributing ₹329.33 crore to the total revenue, while the chemical segment generated ₹281.06 crore.
Strategic Initiatives
In a significant move to expand its global footprint, IOL Chemicals & Pharmaceuticals' Board of Directors has approved the formation of a wholly-owned subsidiary in the United Kingdom. This strategic decision aims to establish a local presence to serve customers in the UK and EU more efficiently and promote the company's global business.
Additionally, the company has announced plans to manufacture Minoxidil and its intermediates in a new Unit 9B, which will be created by carving out a portion of the existing Unit 9. The new unit will have an installed capacity of 120 MTPA and will be dedicated to the production of Minoxidil and its intermediates. The estimated cost for establishing Unit 9B is ₹5.50 crore, which will be fully funded through internal accruals. The project is expected to be completed by December 2025.
Management Commentary
Commenting on the results and new initiatives, the Joint Managing Director of IOL Chemicals & Pharmaceuticals stated, "Our strong performance in Q1 reflects the resilience of our business model and the growing demand for our products. The strategic decision to establish a UK subsidiary and venture into Minoxidil production aligns with our vision for global expansion and portfolio diversification. These initiatives are expected to enhance our manufacturing capabilities and strengthen our position in the international market."
The company's board meeting, which approved these results and initiatives, commenced at 1:00 PM and concluded at 2:20 PM on August 7, 2025. The unaudited financial results have been subjected to a limited review by the statutory auditors, who have expressed an unmodified opinion.
With these robust financial results and forward-looking initiatives, IOL Chemicals & Pharmaceuticals appears well-positioned for sustained growth and expansion in both domestic and international markets.
Historical Stock Returns for IOL Chemicals & Pharmaceuticals
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-6.18% | -13.39% | +13.10% | +68.48% | +6.20% | -31.45% |