IPCALAB · Healthcare · filed 5 Nov 2026
Ipca Laboratories Ltd. reported revenue of ₹2,910 cr for July to September 2026, +13.8% on the year and +4.4% on the quarter. That is in line with how this quarter has grown in recent years (+12.2% on average). It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹10,478 cr, +12.0% on the four before.
Operating profit (EBITDA) was ₹673 cr, a margin of 23.1%, +183 bps on the year and −87 bps on the quarter. Over the last 8 quarters the margin has ranged from 18.0% to 24.0%, averaging 21.1%. Operating costs grew +11.2% against revenue growth of +13.8%, so more of each rupee of sales reached operating profit.
Net profit was ₹389 cr, +38.8% on the year and −8.2% on the quarter, with earnings per share of ₹14.79. Profit before other income, one-offs and tax grew faster, at +63.0%; other income, one-offs or tax held the headline back. The tax rate of 28% is in line with its recent average. Profit over the last four quarters totals ₹1,485 cr, +73.9% on the four before.
Of the 13 companies in Pharmaceuticals that have reported Q2 FY27 so far, Ipca Laboratories Ltd. ranks 6th on revenue growth; the sector median is +11.8%. Its margin moved +183 bps on the year against a sector median of −60 bps.
Pharma quarters swing with US generic launches and price erosion, while India formulations grow more steadily. Currency gains and other income can be material, so headline profit needs a check against operating profit.
On earnings per share of ₹55.28 over the last four quarters, the stock at ₹1,959.70 trades at 35.5 times trailing earnings.
No check fired. That is a statement about the checks below, not a verdict on the company.
Core profit grew faster than reported profit: one-offs held the headline down.
Source: Results filing
Could not run on this quarter: IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹2,395 cr | ₹2,014 cr | ▲ 18.9% |
| Inventory | ₹2,938 cr | ₹2,731 cr | ▲ 7.6% |
| Cash | ₹207 cr | ₹437 cr | ▼ 52.6% |
| Bank balances | ₹58.3 cr | ₹127 cr | ▼ 54.3% |
| Long-term borrowings | ₹67.4 cr | ₹109 cr | ▼ 38.3% |
| Short-term borrowings | ₹559 cr | ₹595 cr | ▼ 6.0% |
| Trade payables | ₹1,074 cr | ₹940 cr | ▲ 14.3% |
| Net block | ₹4,282 cr | ₹4,180 cr | ▲ 2.4% |
| Capital work in progress | ₹832 cr | ₹762 cr | ▲ 9.2% |
| Equity | ₹8,678 cr | ₹8,064 cr | ▲ 7.6% |
| Total assets | ₹13,133 cr | ₹12,370 cr | ▲ 6.2% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹573 cr | ₹780 cr |
| Capital expenditure | −₹443 cr | −₹461 cr |
| Investing cash flow | −₹341 cr | −₹298 cr |
| Financing cash flow | −₹252 cr | −₹211 cr |
| Dividends paid | −₹154 cr | −₹52.7 cr |
Operating cash flow was 0.70× profit. Receivables at 77 days of sales (+0 days against the last year end). Inventory at 94 days of sales (−9 days).
Other matter 1: “We did not review the special purpose consolidated financial results of one subsidiary, whose consolidated financial results reflect total assets of Rs. 3905.28 Crores, total revenue of Rs. 1303.82 Crores and net profit after tax of Rs. 61.13 Crores and… Read in full
We did not review the special purpose consolidated financial results of one subsidiary, whose consolidated financial results reflect total assets of Rs. 3905.28 Crores, total revenue of Rs. 1303.82 Crores and net profit after tax of Rs. 61.13 Crores and total comprehensive income of Rs 61.27 Crores for the half year ended September 30, 2026, before giving effect to elimination of intra-group transactions as considered in the preparation of the consolidated financial results. These special purpose financial statements have been prepared for the purposes of harmonizing accounting policy as followed by parent company for inventory valuation i.e. change the cost formula followed by the subsidiary company from weighted average to First in First out and have been reviewed by other auditors whose report has been furnished to us by the Management and Our conclusion on the statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiary is based solely on the reports of the other auditor and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of this matter.
Other matter 2: “These consolidated financial results also include the Group's share of loss after tax of Rs 2.54 crores and Total Comprehensive loss of Rs 2.54 crores in respect of one associate and one joint venture, for the half year ended September… Read in full
These consolidated financial results also include the Group's share of loss after tax of Rs 2.54 crores and Total Comprehensive loss of Rs 2.54 crores in respect of one associate and one joint venture, for the half year ended September 30, 2026, as considered in the Statement. These unaudited financial results have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of this associates and joint venture, are based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above. Our conclusion on the Statement is not modified in respect of the above matters.
Other matter 3: “We also did not review the financial results of ten subsidiaries whose financial results reflects, total assets Rs. 1,263.94 crores total revenues Rs. 259.23 Crores, net profit after tax of Rs 4.56 Crores and Total Comprehensive loss of Rs 9.11… Read in full
We also did not review the financial results of ten subsidiaries whose financial results reflects, total assets Rs. 1,263.94 crores total revenues Rs. 259.23 Crores, net profit after tax of Rs 4.56 Crores and Total Comprehensive loss of Rs 9.11 crores for the half year ended September 30, 2026, as considered in these financial results. The consolidated financial results also include the Group's share of net profit of Rs 1.78 crores and Total Comprehensive income of Rs 1.78 crores in respect of 1 joint ventures. These financial statements of immaterial subsidiaries and joint venture have been prepared by the management for consolidation purposes and are incorporated in these consolidated financial statements on the basis of the management accounts on which we have not carried out any review procedures. Our conclusion is not modified on this account.
Filing p. consolidated limited review report p.1-3
Board of Directors approved the scheme of amalgamation of M/s. Krebs Biochemicals & Industries Ltd. with the Company w.e.f. April 1, 2026, subject to necessary consents and approvals. (p. consolidated note 6)
Tax: Consolidated tax expense of ₹155.63 crore (current tax ₹147.35 crore, deferred tax charge ₹8.28 crore) on Profit before tax of ₹547.17 crore for Q2 FY27
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| India growth YoY | 14% | — | 1,019% |
| Gross margin | 72.03% | 71.5% | 75.36% |
| Exports Income (₹ crore) | 951.39 | — | 813.65 |
| Generics Export Formulations Revenue (₹ crore) | 364.48 | — | 268.01 |
Worked out from filed numbers. Gross Margin: Consolidated Gross Margin = (Revenue ₹2,909.94 crore - Cost of materials/purchases/inventory change ₹813.96 crore) / ₹2,909.94 crore * 100
Plant-wise regulatory status is not explicitly updated in the quarterly financial release notes; operations span vertically integrated FDF and API facilities across India.
Facility-specific regulatory audit updates were omitted from the quarterly results presentation.
Exports income expanded 17% YoY to ₹951.39 crore in Q2 FY27, with Generics export formulation revenue growing 36% YoY to ₹364.48 crore, absorbing base generic pricing pressure.
Volume-driven generic export growth (+36% YoY) effectively offset US/EU price erosion.
Revenue stream is well-balanced between Domestic Formulations (₹1,157.20 crore), Export Formulations (Branded ₹172.50 crore, Institutional ₹115.76 crore, Generics ₹364.48 crore), Domestic APIs (₹135.56 crore), and Export APIs (₹298.65 crore).
Diversified therapeutic and product mix across formulation markets and active pharmaceutical ingredients mitigates product concentration risk.
Read using the Pharmaceuticals framework (named in the filing read). Primary valuation lens: P/E excluding one-time exclusivity gains.
Read more closely in this sector: Status of each US-filed plant · Price erosion stated · One-product dependence.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Amalgamation of Krebs Biochemicals & Industries Ltd. | Approved w.e.f. April 1, 2026 | FY2026-27 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Pharmaceuticals | ₹2,910 cr | ▲ 13.8% | ₹571 cr | ▲ 27.0% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹2,053 cr | ₹2,033 cr | ₹2,093 cr | ₹2,355 cr | ₹2,245 cr | ₹2,247 cr | ₹2,309 cr | ₹2,557 cr | ₹2,392 cr | ₹2,388 cr | ₹2,788 cr | ₹2,910 cr |
| YoY | — | — | +32% | +16% | +9% | +11% | +10% | +9% | +7% | +6% | +21% | +14% |
| EBITDA margin | 16.1% | 15.8% | 18.8% | 18.7% | 20.6% | 19.1% | 18.0% | 21.3% | 22.3% | 20.3% | 24.0% | 23.1% |
| Other income, % of PBT | 31% | −153% | 7% | 8% | 5% | −140% | 10% | 7% | 9% | 12% | 4% | 5% |
| Exceptional items | — | — | — | — | — | — | — | ₹58.3 cr | — | — | — | ₹24.3 cr |
| Tax rate | 23% | — | 31% | 29% | 25% | 49% | 29% | 28% | 18% | 24% | 26% | 28% |
| Net profit | ₹221 cr | ₹1.0 cr | ₹199 cr | ₹246 cr | ₹276 cr | ₹64.0 cr | ₹233 cr | ₹281 cr | ₹364 cr | ₹307 cr | ₹424 cr | ₹389 cr |
| YoY | — | — | +21% | +81% | +25% | +6,300% | +17% | +14% | +32% | +380% | +82% | +39% |
| Core profit YoY | — | — | +30% | +41% | +76% | +57% | +11% | −4% | +17% | +16% | +83% | +63% |
| EPS | ₹7.09 | ₹2.35 | ₹7.58 | ₹9.05 | ₹9.78 | ₹2.67 | ₹9.19 | ₹11.14 | ₹12.86 | ₹11.79 | ₹15.84 | ₹14.79 |
| Flags | 2 | · | ✓ | 1 | ✓ | 1 | ✓ | 1 | 1 | 1 | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Ipca Laboratories Ltd. reported revenue of ₹2,910 cr (+13.8% on the year) and net profit of ₹389 cr (+38.8% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved +63.0% on the year, against +38.8% for reported profit.
None of the 15 checks that could run raised a question.
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