Earnings Outlook
Exports seen driving up IPCA Labs Apr-Jun net, revenue
This story was originally published at 20:38 IST on 8 August 2025
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By Rizwan Ali
MUMBAI – IPCA Laboratories Ltd. is expected to post robust year-on-year growth in its revenue and net profit in the June quarter. An increase in demand for generic medicines and the Unichem Laboratories portfolio will drive the revenue growth, according to brokerages tracking the company.
IPCA Laboratories is expected to post a net profit of INR 2.62 billion in the June quarter, up 28% on year, according to the average of estimates from seven brokerages. The company had incurred a net loss of INR 650 million in the March quarter. The highest estimate for net profit is INR 3.23 billion by Motilal Oswal Financial Services Ltd. and the lowest is INR 2.30 billion by Prabhudas Lilladher Pvt. Ltd.
The company is expected to post net sales of INR 23.16 billion for the June quarter, up 48% on year, according to the average of estimates. The highest estimate for net sales is INR 23.72 billion by Motilal Oswal and the lowest is INR 22.70 billion from JM Financial Institutional Securities Ltd.
The growth in revenue is expected to be driven by a rise in domestic and export demand for generic formulations, YES Securities said. The pharma company is expected to post strong earnings led by operating efficiencies of Unichem Laboratories, which was acquired by IPCA Labs in 2023, and an increase in exports, Dolat Capital said. The company's key focus will remain on exports of generic medicines and recovery of its active pharmaceutical ingredients business, Prabhudas Lilladher said.
The pharma company had reported an 18% growth in chronic drug sales in the trailing quarter, IQVIA, the data and analytics provider said. The API business of the company is expected to grow 7% on year, driven by both volume and price. The generic medicine business is expected to grow 10% on year, ICICI Direct Research said.
In 2024-25 (Apr-Mar), exports constituted 42% of the company's total revenue. Europe was the largest contributor to the company's export revenue, accounting for almost 30%.
The company is expected to post an earnings before interest, tax, depreciation, and amortisation of INR 4.57 billion for the June quarter, according to the average of estimates. The highest estimate for EBITDA is INR 4.91 billion from Motilal Oswal and the lowest is INR 4.32 billion from Prabhudas Lilladher. The EBITDA margin of the company for the reporting quarter is expected to be 19.8%, up 128 basis points on year and 156 bps on quarter, Dolat Capital said.
IPCA Laboratories is expected to post an adjusted profit after tax of INR 2.63 billion for the June quarter, up 39% on year and 27% on quarter, Nuvama Institutional Equities said. The brokerage did not detail what the adjustment was or the amount of the adjustment.
Friday, shares of IPCA Laboratories ended at INR 1,386.80 on the National Stock Exchange, down 0.3% from the previous close. The shares have fallen 6% since the company announced its March quarter earnings and are down 21% from their all-time high of INR 1,755.90 touched on Jan. 7, 2025.
Of the 12 brokerage reports available on the company with Informist, 10 have a ‘buy' recommendation on the stock with an average target price of INR 1,671 and two brokerages have a sell recommendation. The company will announce its June quarter earnings Monday.
Following are the Apr-Jun earnings estimates, in INR million, for IPCA Laboratories Ltd. based on reports from seven brokerages in descending order of the net profit:
Brokerage firms |
Net Sales (in INR million) |
Net Profit (in INR million) |
EBITDA (in INR million) |
Motilal Oswal Financial Services Ltd | 23,720.00 | 3,225.00 | 4,910.00 |
YES Securities (India) Ltd | 23,703.00 | 2,694.00 | 4,832.00 |
JM Financial Institutional Securities Pvt Ltd | 22,697.00 | 2,641.00 | 4,391.00 |
Nuvama Wealth Management Ltd | 22,704.00 | 2,625.00 | 4,609.00 |
7 Dolat Capital Market Pvt Ltd | 23,111.00 | 2,519.00 | 4,576.00 |
HDFC Securities Ltd | 22,986.00 | 2,305.00 | 4,367.00 |
Prabhudas Lilladher Pvt Ltd | 23,196.00 | 2,298.00 | 4,327.00 |
Average |
23,159.57 |
2,615.29 |
4,573.14 |
End
Edited by Saji George Titus
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