Indoco Remedies Q2 FY27 results: net profit ₹19.47 crore vs ₹9.21 crore loss, revenue up 7.3%

How did Indoco Remedies perform in Q2 FY27?

Indoco Remedies reported consolidated revenue of ₹520.17 crore in Q2 FY27, up 7.3% from ₹484.67 crore in Q2 FY26 and 11.3% from ₹467.50 crore in Q1 FY27. EBITDA increased 7.9% year on year to ₹46.43 crore, with the margin unchanged at 8.9% from Q2 FY26 and up 0.1 percentage points from Q1 FY27.

Profit before tax was ₹24.19 crore, compared with a loss of ₹13.53 crore in Q2 FY26, but it fell from ₹77.72 crore in Q1 FY27. Net profit was ₹19.47 crore against a net loss of ₹9.21 crore a year earlier and ₹65.44 crore in the previous quarter. Basic EPS was ₹2.11, compared with ₹1.00 in Q2 FY26 and ₹7.09 in Q1 FY27.

On the standalone basis, revenue was ₹451.59 crore, up 2.1%, while PAT was ₹30.63 crore. Standalone profit before tax was ₹15.05 crore.

What changed in Indoco Remedies' costs and profit?

Against Q2 FY26, total expenses were ₹535.09 crore, up 7.4% from ₹498.43 crore. Cost of materials rose 13.0% to ₹127.63 crore from ₹112.99 crore, while employee cost increased 1.8% to ₹105.11 crore from ₹103.23 crore.

Finance costs increased 9.6% to ₹26.91 crore from ₹24.56 crore, and depreciation rose 6.8% to ₹34.44 crore from ₹32.25 crore. Other expenses fell 2.2% to ₹188.79 crore from ₹193.05 crore. Other income increased 159.2% to ₹1.97 crore from ₹0.76 crore.

Exceptional items were a gain of ₹37.14 crore, compared with a charge of ₹0.53 crore in Q2 FY26. Tax was ₹4.72 crore, against a tax credit of ₹4.32 crore in the year-ago quarter. The filing stated that the exceptional gain included ₹3,663 lakhs from the sale of the company’s Andheri property in Mumbai.

How did the first half of FY27 go?

H1 FY27 revenue rose 6.9% to ₹987.67 crore from ₹924.35 crore in H1 FY26, while total income increased 7.0% to ₹991.83 crore from ₹926.74 crore. Profit before tax was ₹101.92 crore, compared with a loss of ₹50.18 crore in the year-ago half.

PAT for H1 FY27 was ₹84.92 crore, compared with a net loss of ₹45.55 crore in H1 FY26, while EPS was ₹9.21 against ₹1.00 in the year-ago half. The company attributed no additional reason for the turnaround beyond the reported financial results.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,612.74 crore, up from ₹2,593.27 crore at 31 March 2026. Total equity increased to ₹1,015.92 crore from ₹932.11 crore, while borrowings fell to ₹976.10 crore from ₹1,035.85 crore and cash rose to ₹34.76 crore from ₹25.93 crore.

Inventories were ₹396.65 crore, lower than ₹405.21 crore at 31 March 2026. Trade receivables increased to ₹537.55 crore from ₹489.17 crore, while trade payables fell to ₹279.09 crore from ₹308.52 crore.

H1 FY27 operating cash flow was ₹184.57 crore, compared with ₹157.78 crore in H1 FY26. Investing cash flow was negative ₹49.23 crore against negative ₹59.56 crore, and financing cash flow was negative ₹126.49 crore against negative ₹97.67 crore. Capex was ₹60.49 crore, compared with ₹103.74 crore in the year-ago half.

How has Indoco Remedies done over the last 8 quarters?

Revenue reached a peak of ₹520.17 crore in Q2 FY27 after rising for each of the last six quarters on a year-on-year basis. Revenue had bottomed at ₹390.21 crore in Q4 FY25 and has since moved higher, including ₹475.61 crore in Q4 FY26 and ₹467.50 crore in Q1 FY27.

PAT moved from a net loss of ₹41.34 crore in Q4 FY25 to a net profit of ₹65.44 crore in Q1 FY27, before falling to ₹19.47 crore in Q2 FY27. The EBITDA margin bottomed at negative 0.2% in Q4 FY25, peaked at 10.5% in Q4 FY26 and stood at 8.9% in Q2 FY27, unchanged from Q2 FY26.

What else did the company announce?

On 27 October 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with a press release and the limited review report. The same-day filing stated that AnaCipher, Indoco Remedies’ clinical research organisation, had received ANVISA Brazil approval for its clinical and bioanalytical facilities.

The ANVISA filing said AnaCipher could conduct bioavailability and bioequivalence studies for submission to Brazil with related bioanalytical support. The filing also stated that AnaCipher is a clinical research organisation headquartered in Hyderabad and provides services to pharmaceutical companies worldwide. No dividend or fund-raising announcement was included in the same-day filings.

What did the auditors point out?

The board approved the limited review report with an unmodified opinion issued by Gokhale & Sathe, Chartered Accountants. The auditors drew attention to an emphasis of matter concerning non-current financial investments in the standalone financial statements at FPP Holding LLC and Warren Remedies Private Limited.

The emphasis-of-matter excerpt stated that FPP Holding reported a net profit of Rs 728.14 Lakhs in the quarter and a cumulative profit of Rs 1,029.03 Lakhs for 1 April 2026 to 30 September 2026, while retaining a negative net worth of Rs 3,082.60 Lakhs. It also stated that Warren Remedies reported a net loss of Rs 1,819.90 Lakhs in the quarter and a cumulative loss of Rs 3,739.78 Lakhs for the half, with a negative net worth of Rs 1,735 in the excerpt.

What did Indoco Remedies' management say?

Management said regulated-market revenue grew 21.1%, with Europe and the UK targeted at 20% or more growth over the next one to two years. It maintained high-single-digit domestic formulations growth guidance for FY27 despite first-half weakness, while export revenue was expected to reach a decent double-digit, if not more, in FY27.

Management said freight added about Rs. 13 crore of quarterly expense pressure, while material inflation constrained margin expansion. R&D was expected to remain at no more than 5% of sales and was 4% on a year-to-date basis. Tangible capex was expected below Rs. 25 crore in FY27, with no major spend expected in H2 FY27 or FY28.

Management said emerging markets were expected to improve in Q3 and H2 FY27, although the divested ophthalmology portfolio was expected to create a Rs. 10-12 crore full-year revenue headwind. The company also identified material inflation, freight disruption, seasonal acute-therapy weakness, Goa FDA observations and underutilisation at Warren API as risks. The earliest update on the Goa FDA response was the first week of December 2026.

How did Indoco Remedies shares react?

After the filing appeared, the stock was up 4.4% after five minutes, 2.2% after 15 minutes and 0.8% after 30 minutes. It closed the reaction day unchanged from the pre-results close, then was down 2.2% by the next day’s close and down 2.4% by the fifth session’s close, measured cumulatively from the pre-results close.

How did other Pharmaceuticals companies do?

Sixty Pharmaceuticals companies had filed for the quarter by 4 November 2026, with a median revenue growth of 19.8%. Fourteen peers grew more slowly than Indoco Remedies, while 46 grew faster than the company.

Among the 54 peers for which profit was compared, 38 reported higher profit. Indoco Remedies’ Q2 FY27 revenue growth of 7.3% was below the peer median of 19.8%.