Indegene Q4 FY25 results: net profit up 24.1% to ₹117.60 crore, revenue up 12.3%

How did Indegene perform in Q4 FY25?

Indegene reported Q4 FY25 consolidated revenue of ₹755.60 crore, compared with ₹673 crore in Q4 FY24 and ₹720.40 crore in Q3 FY25. Revenue rose ₹82.60 crore or 12.3% year on year and ₹35.20 crore or 4.9% sequentially. EBITDA was ₹147.50 crore, up ₹8.80 crore or 6.3% from the year-ago quarter, while EBITDA margin was 19.5%, down 1.1 percentage points.

Profit before tax was ₹149.30 crore in Q4 FY25, against ₹133.50 crore in Q4 FY24 and ₹146.30 crore in Q3 FY25. Net profit was ₹117.60 crore, compared with ₹94.80 crore a year earlier and ₹109.70 crore in the previous quarter; basic EPS was ₹4.91. On the standalone basis, revenue was ₹266.7 crore and profit after tax was ₹54.2 crore, down 2.1% and from ₹48.9 crore, respectively.

The quarter’s net profit margin was 15.6%, compared with 14.1% in Q4 FY24 and 15.2% in Q3 FY25. The results include no exceptional item in Q4 FY25, while Q4 FY24 included a ₹2.40 crore gain.

What changed in Indegene's costs and profit?

Total expenses increased ₹66.80 crore or 11.8% year on year, to ₹631.90 crore, against revenue growth of 12.3%. Employee cost was ₹485.10 crore, up ₹56.70 crore or 13.2%, while other expenses rose ₹17.10 crore or 16.1% to ₹123 crore. Depreciation increased ₹2.20 crore or 11.9% to ₹20.70 crore.

Finance costs fell ₹9.20 crore or 74.8% to ₹3.10 crore from ₹12.30 crore. Other income increased ₹2.40 crore or 10.3% to ₹25.60 crore, while tax expense declined ₹7 crore or 18.1% to ₹31.70 crore. Q4 FY25 had no exceptional item, compared with a ₹2.40 crore gain in Q4 FY24.

Against Q3 FY25, total expenses rose ₹20.10 crore or 3.3% to ₹631.90 crore. Employee cost increased ₹41.30 crore or 9.3% to ₹485.10 crore, while other expenses fell ₹21.80 crore or 15.1% to ₹123 crore. Other income decreased ₹12.10 crore or 32.1% to ₹25.60 crore, and tax expense declined ₹4.90 crore or 13.4% to ₹31.70 crore.

How did Indegene do in FY25 as a whole?

For FY25, Indegene reported consolidated revenue of ₹2,839.3 crore, up ₹249.7 crore or 9.6% from FY24. Total income was ₹2,946.5 crore, up ₹280.6 crore or 10.5%, while profit before tax increased ₹80.7 crore or 17.6% to ₹539.3 crore.

Net profit for FY25 was ₹406.7 crore, up ₹70.0 crore or 20.8% from FY24. Basic EPS increased from 15.19 to 17.15, a rise of ₹1.96 or 12.9%.

What do the balance sheet and cash flow show?

At 31 March 2025, total assets were ₹3,325.9 crore, compared with ₹3,024.1 crore at 30 September 2024, while total equity was ₹2,615.6 crore against ₹2,360 crore. The company reported no borrowings at both dates, and cash was ₹241 crore compared with ₹311.9 crore.

Trade receivables were ₹751.4 crore at 31 March 2025, up from ₹704.8 crore at 30 September 2024. Trade payables were ₹93.4 crore against ₹87 crore, and there was no inventory at either balance-sheet date. FY25 operating cash flow was ₹441.9 crore, compared with ₹507.7 crore in FY24.

Investing cash flow was negative ₹682.7 crore in FY25, against negative ₹327.2 crore in FY24, while financing cash flow was ₹287.5 crore compared with negative ₹66.2 crore. Capital expenditure was ₹30 crore in FY25, up from ₹10.7 crore in FY24; FY24 closing cash was ₹188.6 crore.

How has Indegene done over the last 5 quarters?

Revenue increased from ₹673 crore in Q4 FY24 to ₹755.60 crore in Q4 FY25, reaching its highest level in the reported five-quarter period. Profit after tax moved from ₹94.80 crore to ₹117.60 crore over the same period, also ending at the highest level.

EBITDA margin was highest at 20.6% in Q4 FY24 and fell to 18.3% in Q3 FY25 before recovering to 19.5% in Q4 FY25. Profit after tax bottomed at ₹87.7 crore in Q1 FY25 and rose in each of the following two reported quarters.

Which businesses drove the quarter?

Enterprise Medical Solutions reported Q4 FY25 revenue of ₹210.7 crore, up 31.5% from ₹160.2 crore in Q4 FY24. Segment EBIT rose from ₹47.5 crore to ₹58.5 crore, and the reported EBIT margin was 27.8%.

Enterprise Commercial Solutions recorded revenue of ₹425.5 crore, up 8.4% from ₹392.7 crore in the year-ago quarter. EBIT was ₹91.5 crore, compared with ₹99 crore, while the reported EBIT margin was 21.5%.

Omnichannel Activation reported revenue of ₹96.7 crore, up 10.0% from ₹87.9 crore in Q4 FY24, and EBIT of ₹14.7 crore compared with ₹9.2 crore. The reported EBIT margin was 15.2%. The Others segment reported revenue of ₹22.7 crore, down 29.5%, and an EBIT loss of ₹10 crore compared with a loss of ₹6.4 crore.

What else did the company announce?

The board approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2025. The auditor’s report on the consolidated annual results carried an unmodified opinion. The board also approved allotment under the RSU Scheme 2020.

The board recommended a final dividend of Rs. 2 per equity share of Rs. 2 each for FY25, which the company said would be paid within 30 days after shareholder approval at the ensuing annual general meeting. The record date and AGM date were to be intimated later.

Indegene also filed an analyst presentation and fact sheet for the Q4 and FY25 financial results on the same day. The presentation said the company had launched Cortex, its flagship GenAI platform purpose-built for the life sciences industry, and announced its maiden dividend at 100% for FY25.

What did Indegene's management say?

Management did not issue formal forward guidance. It described the short-term FY26 outlook as “cautiously optimistic” and the medium-to-long-term outlook as “optimistic”. Management expected two top-five customers to face revenue reductions of about $1 million each from late Q1 FY26, and said reconfiguration at the largest customer would lower realisation by about $1 million with minimal margin impact.

Management said capex would be in line with the RHP, at about 1% of revenue, while technology and R&D investment would remain in the 1.7%-2% band of revenue. CFO Suhas Prabhu said: “The margin outlook would be fairly stable even in the coming periods, and we will continue to strive to improve this, as we grow because we would get more operating leverage, which should add to the margins.”

Chairman and CEO Manish Gupta said FDA staff reductions of nearly 3,500 full-time employees, or 20% of the workforce, could create a medium-term opportunity as clients seek regulatory bandwidth. He said Indegene had launched Cortex to contextualise GenAI for life sciences with governance and compliance capabilities.

Gupta said the growth agenda would remain a priority and that the company would continue pursuing tuck-in acquisitions using cash. He said: “We will be prioritizing growth agenda hard. We'll continue to pursue tuck-in acquisitions to enhance, deepen and broaden our capabilities and use our cash for these acquisitions.” Management also identified customer concentration and macro uncertainty as risks.

How did Indegene shares react?

After the filing appeared after market hours, Indegene’s shares fell 1.3% within five minutes, 1.7% within 15 minutes and 1.6% within 30 minutes. On the reaction day, the stock closed 2.6% below its pre-results close of ₹578, compared with a 1.1% decline for the Healthcare Services industry median.

By the next day’s close, the stock was down 4.2% from the pre-results close. By five sessions, it was down 2.7%, while the industry median was down 2.9%, leaving Indegene 0.1 percentage points above the industry move. The Nifty Smallcap 250 was down 1.6% over the same five-session period.

Earlier reaction-day moves were also negative: 0.7% on 30 January 2025, 5.9% on 28 October 2024, 2.9% on 1 August 2024 and 2.4% on 29 May 2024. The stock was up 3.3% over the one-month period measured from the pre-results close.