Indoco Remedies Ltd. share price target

Q4FY26 Decent top-line growth with better-than-expected margins Revenues grew ~19/5% YoY/QoQ to 456 crore aided by ~94/58% YoY/QoQ growth in export formulations to ~ 215 crore tracking 69% growth in the Regulated Market (US & Europe). Domestic formulations on the other remained muted to ~200 crore due to unpredictable performance in acute therapies. On the operational front, GPM declined 249/261 bps YoY/QoQ to 70.4%; EBITDA margins improved to 10.5% (1065/338 bps YoY/QoQ) on the back of reduction in operating expenses. Normalisation expected from FY27- After a prolonged hiatus, exports...

Indoco Remedies' (INDR) Q1FY26 EBITDA was largely in line. Though margins and regulated sales have recovered QoQ but they are still below its historical run-rate given elevated expenses and ongoing FDA issues. The warning letter issued for both units has restricted growth, however USFDA has allowed to resume supplies from 2 out of 4 lines. The company cited other expenses to remain elevated in the near term. Our FY26/FY27E EBITDA has been cut by 811% to factor in low margins. At CMP, the stock is trading at 3.9x EV/domestic...

Discontinuing coverage - Regulatory Challenges Overshadow

Product diversification to propel revenue and profitability

Formulation exports accounted for 40% (regulated markets:81%) of revenues while APIs contributed 8% with remaining coming from CRAMS Q3FY22 Results: Indoco reported revenue growth due to traction in domestic...

Indoco Remedies' (INDR) reported another muted quarter in a regulated market performance; management expects to recover in coming quarters given strong order book and new launches. Domestic market continued to witnessed growth on low base in therapies like anti-infective, GI, VMN and Opthal. We remain structurally positive on INDR on account of 1) MR productivity enhancement and higher penetration in North and East markets 2) new launches in US and 3) higher tender business in EU market. This will...

Domestic formulation continues to register strong growth Indoco Remedies' (INDR) Q2FY22 performance was muted in regulated market, but should recover with pick up in profit share from Brinzolamide in US and settling of logistics issues in EU markets. The domestic market continued to witnessed strong growth in therapies like anti-infective, GI, VMN and Opthal. We remain structurally positive on INDR on account of 1) MR productivity enhancement and higher penetration in North and East markets 2) new launches in US and 3) higher tender business in EU market. This will...

last eight quarters. INDR maintains robust guidance in US generics with growth of 67%/24% in FY22E/FY23E. Its business expansion will drive 25%+ growth in Europe. We note that India formulation sales growth of more than 17% with revenue contribution of 55-60% will have multiplier benefit on sales and headline margins going forward. This along with strong and sustainable growth in US will improve EBITDA margin from 15-16% to 18-20% in FY22E23E. We maintain our positive outlook on INDR as we believe that 1) MR productivity would improve to Rs3lakhs/month (from Rs2.5lakh/month) along with existing field force, 2) India formulations growth to return to more than...