Ipca Laboratories (IPCA IN) – Q1FY27 Result Update – Strong beat; FY27 guidance raised – BUY
Published on 15 Aug 2026
IPCA reported strong EBITDA of INR 6.4bn (up 50% YoY), 23% above our estimates. Company has revised revenue growth upward to 14-16% vs 12-13% earlier and OPM to 23% vs 22% in FY27E post strong Q1. Our FY27E and FY28E EPS stand increased by 4-5% which factors in 14% 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 16x EV/EBITDA and 25x PE on FY28E adjusted for Unichem stake. We maintain our “Buy” rating on stock with revised TP of INR 2,000/share; valuing at 30x P/E on FY28E.
