Ipca Laboratories Ltd. share price target

was weak with 4.3% OPM; impacted by certain one offs and price erosion in certain products. Mgmt. reiterated its FY26 guidance of 9-10% revenue growth however 75bps margin expansion vs 100 bps earlier. Our FY26E and FY27E EPS...

Ipca Labs (IPCA) reported EBITDA of Rs4.1bn (up 35% YoY), was in line with our estimates. However, mgmt. FY26 guidance of 8-10% revenue growth was below our expectations (12-13%). Resultant, our FY26E and FY27E EPS stands reduced by 4-8%. API and generic business growth were muted in FY25; recovery will be gradual. Domestic formulation business, which now contributes 40% of revenues and ~55% of EBITDA, continued to outperform and grow at healthy levels. Turnaround in Unichem remains on track with...

Domestic formulation growth was aided by 5-6% each price and volume. Ipca Labs (IPCA) reported EBITDA of Rs4.6bn (up 35% YoY), 7% beat to our estimates. Our FY26E and FY27E EPS broadly remains unchanged. The broadbased revenue growth in 9M provides comfort while export API and generic should recover in coming quarters. Domestic formulation business, which now contributes 40% of revenues and ~60% of EBITDA, continued to outperform and grow at healthy levels. Turnaround in Unichem remains on track with...

Following a muted performance in the US over the past eight years due to compliance issues, IPCA is well-poised to revive its US business through new product launches, relaunches, stable pricing in its base business, and the integration of the Unichem business over the next 12-24M.

Quarterly revenues reached Rs. 2,355 crore, marking a 16% y-o-y increase and a 13% rise from the
previous quarter. Profit after tax (PAT) came in strong at Rs. 245 crore, up 39% as compared to last year and 23%, sequentially.

After three years of earnings deterioration, IPCA is well-poised to deliver strong earnings growth over FY24-27.

Ipca’s board would discuss the strategic integration of Bayshore Pharmaceuticals’ generics business into Unichem Pharma (USA) Inc on September 30, 2024.

Ipca Laboratories Limited’s (Ipca) earnings came above our estimates, as sales grew 32.9% y-o-y to Rs. 2,092 crore. Sales growth was led by 11.6% y-o-y growth in domestic branded formulations.

IPCA delivered better-than-expected 1QFY25 earnings. The improved performance in the domestic formulation (DF) segment was offset to some extent by a subdued show in exports and API segment.