Ipca Laboratories (IPCA IN) – Management Meet Update – Steady growth visibility – BUY
Published on 06 Mar 2026
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 leverage and will further improve margins by 200bps over FY26-28E for ex Unichem. Our FY27E and FY28E EPS broadly remains unchanged. At CMP, the stock is trading at 15x EV/EBITDA and 24x PE on FY28E adjusted for Unichem stake. We maintain our “Buy” rating on stock with TP of Rs1,800/share; valuing at 18x EV/EBITDA on FY28E.
