Innova Captab Q4 FY25 results: net profit up 3.0% to ₹29.57 crore, revenue up 19.8%

How did Innova Captab perform in Q4 FY25?

Innova Captab's consolidated revenue for the January–March 2025 quarter was ₹314.74 crore, up ₹52.11 crore or 19.8% from ₹262.63 crore in Q4 FY24. Total income was ₹318.12 crore, up ₹49.80 crore or 18.6%. EBITDA was ₹47.69 crore, up ₹9.61 crore or 25.2%, while the EBITDA margin was 15.2%, up 0.7 percentage points from 14.5%.

Profit before tax was ₹39.31 crore, down ₹0.24 crore or 0.6% from ₹39.55 crore in Q4 FY24. After tax of ₹9.74 crore, net profit was ₹29.57 crore, up ₹0.85 crore or 3.0%, and basic EPS was ₹5.17 against ₹5.02. The net profit margin was 9.4%, down 1.5 percentage points from 10.9%.

Against Q3 FY25, revenue fell ₹1.72 crore or 0.5% to ₹314.74 crore and total income fell ₹2.67 crore or 0.8% to ₹318.12 crore. EBITDA rose ₹1.13 crore or 2.4% to ₹47.69 crore and the margin was up 0.5 percentage points to 15.2%. Profit before tax fell ₹6.28 crore or 13.8% to ₹39.31 crore, net profit fell ₹4.63 crore or 13.5% to ₹29.57 crore, and basic EPS fell ₹0.80 or 13.4% to ₹5.17. On the standalone basis, revenue was ₹242.52 crore and net profit was ₹17.12 crore.

What changed in Innova Captab's costs and profit?

Total expenses were ₹278.81 crore in Q4 FY25, up ₹50.04 crore or 21.9% from ₹228.77 crore in Q4 FY24. Cost of materials rose ₹50.88 crore or 31.8% to ₹210.93 crore, employee cost rose ₹9.62 crore or 37.1% to ₹35.52 crore, depreciation rose ₹6.39 crore or 187.4% to ₹9.80 crore, finance costs rose ₹1.14 crore or 140.7% to ₹1.95 crore, and other expenses rose ₹3.13 crore or 10.3% to ₹33.52 crore.

Other income fell ₹2.30 crore or 40.5% to ₹3.38 crore from ₹5.68 crore, and tax expense fell ₹1.08 crore or 10.0% to ₹9.74 crore from ₹10.82 crore. There was no exceptional item. The filing did not state reasons for the changes in the cost lines, other income or tax. Against the previous quarter, total expenses rose ₹3.61 crore or 1.3%, led by cost of materials at ₹15.17 crore and employee cost at ₹7.31 crore.

How did Innova Captab do in FY25 as a whole?

For the full year FY25, consolidated revenue was ₹1,243.68 crore, up ₹162.37 crore or 15.0% from ₹1,081.31 crore in FY24. Total income was ₹1,255.72 crore, up ₹161.93 crore or 14.8% from ₹1,093.79 crore.

Profit before tax rose ₹41.49 crore or 32.0% to ₹171.02 crore from ₹129.53 crore, and net profit rose ₹33.92 crore or 36.0% to ₹128.26 crore from ₹94.34 crore. Basic EPS for the year was ₹22.41, up ₹3.75 or 20.1% from ₹18.66.

What do the balance sheet and cash flow show?

Total assets were ₹1,580.41 crore as at 31 March 2025, against ₹1,434.55 crore as at 30 September 2024. Total equity rose to ₹959.42 crore from ₹895.3 crore, borrowings rose to ₹338.12 crore from ₹258.66 crore, and cash and cash equivalents stood at ₹15.52 crore against ₹3.38 crore. Inventories were ₹208.0 crore versus ₹175.19 crore, trade receivables ₹331.64 crore versus ₹329.14 crore, and trade payables ₹201.8 crore versus ₹205.14 crore.

For FY25, cash flow from operating activities was ₹63.84 crore, against ₹146.34 crore in FY24. Cash flow from investing activities was negative ₹151.59 crore, against negative ₹498.97 crore, while financing cash flow was ₹91.53 crore against ₹360.83 crore. Capital expenditure was ₹172.5 crore in FY25, down from ₹287.35 crore in FY24. Closing cash for FY24 was ₹11.73 crore.

How has Innova Captab done over the last 7 quarters?

Revenue in the last seven reported quarters rose from ₹282.94 crore in Q2 FY24 to a peak of ₹318.2 crore in Q2 FY25, before easing to ₹316.46 crore in Q3 FY25 and ₹314.74 crore in Q4 FY25. Revenue rose year on year in each of the last three quarters.

Net profit increased from ₹22.91 crore in Q2 FY24 to a peak of ₹35.0 crore in Q2 FY25, then fell to ₹34.2 crore in Q3 FY25 and ₹29.57 crore in Q4 FY25. Profit rose year on year in each of the last three quarters.

The EBITDA margin bottomed at 14.3% in Q2 FY24 and Q1 FY25, peaked at 15.6% in Q2 FY25, and stood at 15.2% in Q4 FY25, above the 14.5% recorded in Q4 FY24.

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, along with the statement of assets and liabilities, the statement of cash flow and the independent auditor's report. A declaration of unmodified opinion signed by the Chief Financial Officer was also enclosed for both consolidated and standalone results.

The board appointed M/s. Jaspreet Dhawan and Associates, Practicing Company Secretaries, as secretarial auditors for five consecutive years from FY2025-26 to 2029-30, subject to shareholder approval; M/s. Gurvinder Chopra & Co. as cost auditor for FY2025-26; and M/s. Grant Thornton Bharat LLP as internal auditor for FY2025-26.

The company also approved shifting its registered office to Office No. 1513, Satra Plaza Premises Co-op. Soc. Ltd., Sector-19D, Vashi, Navi Mumbai, with effect from 2 June 2025, amended its vigil mechanism, whistle-blower, nomination and remuneration, risk management and performance evaluation policies, and approved the notice for the 21st annual general meeting. The same-day filings did not announce a dividend or a fund raise.

What did Innova Captab's management say?

On the earnings call, management said the Jammu plant began commercial production on 14 January 2025 and contributed ₹36 crore in Q4 revenue, with incremental annual depreciation of ₹24-25 crore. Management projected margin expansion from operating leverage, the GST benefit and product mix, without formal segment margin guidance.

Managing Director Vinay Lohariwala said: "As on date, we are very much confident that this number is achievable. And being four facility, so say, if we say, like INR400 crores, sometimes it looks quite aggressive. But if we divide in the four plants, so it's not 1 facility, but there are four block. So, it's like INR100 crores. And each quarter, if we see, then it come out to be, let's say, INR25 crores each block." He also said: "The company being in CIRP, there was some hurdle in acquiring the new business and all that. So once the Innova name is there, the customer is also having a good confidence and all supply side hurdle has been removed."

How did Innova Captab shares react?

The filing appeared after market hours. From the price when the filing appeared, the stock was down 2.2% after five minutes, down 2.7% after 15 minutes and down 1.4% after 30 minutes. On the reaction day, the stock closed 1.2% below its previous close of ₹922.0.

By the next day's close the stock was down 4.0% from its pre-results close, and by the fifth session it was down 6.3%. The Pharmaceuticals industry median moved down 1.0% on the reaction day and down 0.3% by the next day and by the fifth session, leaving Innova Captab behind the sector by 0.1 percentage points on the reaction day, 3.7 percentage points by the next day and 6.0 percentage points by the fifth session.

Earlier results-day moves were mixed: the stock fell 4.3% on 5 February 2025, rose 9.5% on 7 November 2024, rose 2.2% on 9 August 2024 and fell 3.2% on 29 May 2024.

How did other Pharmaceuticals companies do?

Among the 155 Pharmaceuticals companies compared for the quarter, the median revenue growth was 8.3%, below Innova Captab's 19.8%. Of the other companies, 114 grew more slowly than Innova Captab and 41 grew faster. In total, 87 of the 155 peers reported higher profit.