Indegene Q2 FY26 results: net profit up 11.3% to ₹102.10 crore, revenue up 17.1%

How did Indegene perform in Q2 FY26?

Indegene reported consolidated revenue of ₹804.20 crore for Q2 FY26, the July–September 2025 quarter, against ₹686.80 crore in Q2 FY25 and ₹760.80 crore in Q1 FY26. EBITDA was ₹140.60 crore, up from ₹126.10 crore a year earlier but down from ₹155.30 crore in the previous quarter. The EBITDA margin was 17.5%, against 18.4% in Q2 FY25 and 20.4% in Q1 FY26.

Profit before tax was ₹133.10 crore, against ₹124.10 crore in Q2 FY25 and ₹152.10 crore in Q1 FY26. Tax was ₹31 crore, and net profit was ₹102.10 crore, against ₹91.70 crore a year earlier and ₹116.40 crore in the previous quarter. Basic EPS was ₹4.26, compared with ₹3.84 in Q2 FY25 and ₹4.86 in Q1 FY26. On the standalone basis, revenue was ₹306.70 crore and profit after tax was ₹59.90 crore.

What changed in Indegene's costs and profit?

Total expenses rose to ₹690.80 crore in Q2 FY26 from ₹584.10 crore in Q2 FY25, an increase of ₹106.70 crore. Employee cost was the largest line at ₹515.80 crore, up ₹73.80 crore or 16.7%, while other expenses rose ₹29.10 crore to ₹147.80 crore. Depreciation increased by ₹4 crore to ₹23.40 crore, and finance costs fell by ₹0.20 crore to ₹3.80 crore. There was no exceptional item in either quarter.

Other income was ₹19.70 crore in Q2 FY26, down ₹1.70 crore from ₹21.40 crore in Q2 FY25 and ₹2.40 crore from ₹22.10 crore in Q1 FY26. Tax was lower by ₹1.40 crore than a year earlier and by ₹4.70 crore than in the previous quarter. Against Q2 FY25, the EBITDA margin narrowed by 0.9 percentage points and the profit margin by 0.7 percentage points.

How did the first half of FY26 go?

For the first half of FY26, Indegene reported revenue of ₹1,565.00 crore, up from ₹1,363.30 crore in H1 FY25. Total income was ₹1,606.80 crore against ₹1,407.20 crore, and profit before tax was ₹285.20 crore against ₹243.70 crore. Net profit was ₹218.50 crore, up from ₹179.40 crore, and basic EPS was ₹9.12 against ₹7.63.

What do the balance sheet and cash flow show?

As of 30 September 2025, total assets were ₹3,575.70 crore against ₹3,325.90 crore on 31 March 2025, and total equity was ₹2,865.60 crore against ₹2,615.60 crore. The company reported no borrowings at either date. Cash stood at ₹368.30 crore against ₹241.00 crore, while trade receivables were ₹787.00 crore against ₹751.40 crore and trade payables were ₹91.50 crore against ₹93.40 crore.

For H1 FY26, operating cash flow was ₹202.80 crore, against ₹135.30 crore in H1 FY25. Investing cash flow was ₹3.20 crore against negative ₹322.80 crore, and financing cash flow was negative ₹63.60 crore against positive ₹306.40 crore. Capital expenditure was ₹15.70 crore, against ₹4.60 crore in the earlier period.

How has Indegene done over the last 7 quarters?

Revenue rose in each of the last three quarters on a year-on-year basis. Over the reported period, revenue peaked at ₹804.20 crore in Q2 FY26 after ₹755.60 crore in Q4 FY25 and ₹760.80 crore in Q1 FY26, while the earlier low was ₹673.00 crore in Q4 FY24. Profit after tax reached ₹117.60 crore in Q4 FY25 before easing to ₹116.40 crore in Q1 FY26 and ₹102.10 crore in Q2 FY26.

The EBITDA margin bottomed at 17.5% in Q2 FY26, compared with 20.6% in Q4 FY24, 18.4% in Q2 FY25 and 20.4% in Q1 FY26. The latest quarter therefore combines the highest revenue in the series with a lower profit and a narrower margin than the two preceding quarters.

Which businesses drove the quarter?

Enterprise Commercial Solutions reported revenue of ₹487.40 crore, up 26.2% from ₹386.30 crore in Q2 FY25, with EBIT of ₹102.30 crore against ₹79.70 crore and an EBIT margin of 21.0%. Enterprise Medical Solutions recorded revenue of ₹224.20 crore, up 13.4% from ₹197.70 crore, with EBIT of ₹57.50 crore against ₹52.10 crore and an EBIT margin of 25.6%.

Brand Activation reported revenue of ₹63.80 crore with an EBIT of negative ₹4.10 crore and an EBIT margin of negative 6.4%. The Others segment reported revenue of ₹28.80 crore with an EBIT of negative ₹5.90 crore and an EBIT margin of negative 20.5%. Year-ago figures were not given for these two segments, and the investor presentation noted that Brand Activation declined 15.8% from the previous quarter.

What else did the company announce?

At its meeting on 30 October 2025, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025, along with the auditors' limited review report carrying an unmodified opinion and the CFO declaration. The same-day investor presentation and fact sheet were also filed.

The board approved allotment of shares under the ESOP 2020 Plan and RSU 2020 Plan, and noted grants under the RSU 2020 Plan, ESOP 2020 Plan and CSOP 2022 plan. It also approved an amendment to the Anti-Sexual Harassment Policy and an investment of up to Euro 8.5 million in equity shares of wholly owned subsidiary Indegene Ireland Limited, in one or more tranches, in cash by 31 December 2026. The filing states that the investment supports the subsidiary's capital expenditure requirement intended to expand its business.

What did Indegene's management say?

Management said near-term EBITDA margin compression of about 1.5% is expected from go-to-market and capability investments from the next quarter onwards, with recovery to the prior range of around 20% and slightly north expected over 6 to 8 quarters. Manish Gupta, Chairman and CEO, said: “These ahead of the curve investments should accelerate our growth progressively over 6 to 8 quarters, but with EBITDA margins compression in the near term by about 1.5%.” No quantitative revenue or growth guidance was given, as the company follows a policy of not doing so.

Management said two deals with annual contract value above $3 million and four deals in the $1 million to $3 million range closed in the quarter, with the pipeline skewing toward larger annual contract values. The Tectonic GenAI offering scaled to about $2 million of revenue in the first half across four customers, up from two in Q1. BioPharm was acquired for about $65 million and consolidates from 1 October 2025, while WARN was acquired for GBP 2 million upfront, and the cash balance was described as healthy at USD 210 million.

Management flagged risks including margin compression, the 6 to 8 quarter payback horizon, revenue impact from a prior onsite-to-offshore mix shift in a renewed contract with the largest customer, Brand Activation degrowth of 15.8% from the previous quarter, and higher technology costs from GenAI subscriptions and cloud infrastructure. Suhas Prabhu, CFO, said: “Given our engagement model, which is a hybrid construct of time and material, but a larger construct of catalog pricing or output-based pricing, we believe that we have sufficient levers to be able to impact productivity, which results in better margins for us.” Management said US policy changes had minimal direct impact on Indegene.

How did Indegene shares react?

The stock moved lower after the filing, which was released after market hours on 30 October 2025. From the price when the filing appeared, it was down 1.5% after 5 minutes, 2.7% after 15 minutes and 2.6% after 30 minutes. On the reaction day, the stock fell 2.7% from its previous close, and by the next day's close it was down 3.0% from that pre-results close. By the fifth session, the decline was 6.6%.

The Healthcare Services industry median moved down 0.3% on the reaction day, down 0.4% by the next day's close and down 2.5% by the fifth session. Indegene therefore lagged the industry by 2.4 percentage points on the reaction day, by 2.7 percentage points by the next day's close and by 4.1 percentage points by the fifth session. Earlier results-day moves were 5.1% on 31 July 2025, negative 2.6% on 28 April 2025, negative 0.7% on 30 January 2025, negative 5.9% on 28 October 2024, negative 2.9% on 1 August 2024 and negative 2.4% on 29 May 2024.