Ipca Laboratories Ltd. share price target

Q4FY26 - Formulations drive numbers- Revenues grew 6.3% YoY to 2388.5 crore, mainly driven by formulations. Domestic formulations grew 12% YoY to 853 crore. Under exports formulations - Branded exports grew ~14% to 190 crore, generic exports also grew 39% YoY to 341 crore whereas Institutional exports de-grew 33% YoY to 74.1 crore. The API business was flat at 344.6 crore. The subsidiaries (including Unichem) performance was also below par with ~6% degrowth to 574 crore. EBITDA grew 13% YoY to 483.9 crore while EBITDA margins improved...

IPCA reported strong EBITDA of INR 4.9bn (up 19.6% YoY), 7% above our estimates. Company has guided strong revenue growth of 12-13% and 150 bps margin expansion in FY27. Our FY27 and FY28E EPS stand increased by 2-3% which factors in 11% revenue growth in FY27. Domestic formulation and branded generic business, which now contributes 46% of revenues and ~70% of EBITDA, continued to outperform and grow at healthy levels. We believe 1) recovery in API segment 2) higher margins ex Unichem 3) steady growth in domestic formulation are the key growth drivers. At CMP, the stock is trading at 14.5x EV/EBITDA and 23x PE on FY28E adjusted for Unichem stake. We...

Ipca’s 4QFY26 EBITDA was ahead of our expectations (broadly in line with the consensus’). The beat was driven by higher overall sales, a marginally higher gross margin, as well as lower staff costs.

Ipca Laboratories (IPCA) delivered in-line revenue in 4QFY28. It delivered 5% beat on EBITDA, driven by higher gross margin. PAT came in line with estimate.

IPCA is taking multiple initiatives for its domestic formulation (DF) segment, such as cardiology portfolio restructuring, Zerodol franchise strengthening, RA focus within pain management, and entry into high-end cosmo-dermatology, to boost its growth prospects.

We interacted with the management of IPCA Laboratories (IPCA) to assess its medium-term growth trajectory. The company is prioritizing disciplined execution over aggressive diversification, with a clear focus on strengthening its core businesses while building growth levers. Domestic formulations and branded generics which now contribute 45% of revenues and ~70% of EBITDA, continued to outperform market and grow at healthy levels. We expect IPCA to deliver revenue growth ex Unichem at +11% over FY26-28E with normalization in export generic and API business. This will aid operating...

Ipca reported strong EBITDA of Rs5.3bn (up 19% YoY) which was 10% above our estimates. Company has witnessed 400bps GMs expansion ex Unichme for 9MFY26 which should sustain given product mix and softer raw material prices. Export API business witnessed recovery in 9MFY26 with 26% YoY growth. Domestic formulation business, which now contributes 40% of revenues and ~55% of EBITDA, continued to outperform and grow at healthy levels. We believe 1) recovery in API segment 2) higher margins ex Unichem 3) steady...

Revenue break-up Q3FY26 Formulations: 64% (domestic: 41%, export: 22% - export generic: 11%, export institutional: 2%, export branded: 9%), APIs: 13% (export API: 10%, domestic API: 3%), subsidiaries: 23%...

Ipca Laboratories (IPCA) reported in-line revenue and better-than-expected EBITDA/PAT (10%/12% beat) in 3QFY26, aided by product mix, favorable currency and a lower tax rate.

Q2FY26- Revenues growth a little subdued but margins strongRevenues grew ~9% YoY to 2556.5 crore driven by both domestic formulations and API exports. Domestic formulations grew 8% YoY to 1019 crore, driven by strong traction in pain management but also had some impact on account of GST rate rationalization. Export APIs grew ~45% to 221 crore. Under exports formulations - Branded exports grew ~2% to 145 crore, Institutional exports de-grew 29% YoY to 79.7 crore and generic exports de-grew 6% YoY to 268 crore. EBITDA grew 23.4% YoY to 545 crore while EBITDA margins grew by 257 bps to 21.3% aided...

Ipca Laboratories (IPCA) delivered slightly better-than-expected revenue in 2QFY26, while EBITDA/PAT beat our estimates by 18%/22%.

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.