Ipca Laboratories (IPCA IN) – Q2FY27 Result Update – Growth guidance intact – BUY
Published on 06 Nov 2026
IPCA reported strong EBITDA of INR 6.7bn (up 21% YoY), in line with our estimates. Company has maintained revenue growth of 14-16% and OPM at 23% in FY27E with 100-125bps improvement annually. Our FY28E and FY29E EPS stand increased by 2-~5% which factors in 15% 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 17x EV/EBITDA and 26.5x PE on Sept 2028E adjusted for Unichem stake. We maintain our “Buy” rating on stock with revised TP of INR 2,200/share; valuing at 30x P/E on Sept 2028E.
