Target: ₹1,710
CMP: ₹1,480.15
Ipca reported strong EBITDA of ₹530 crore, up 19 per cent year on year, which was 10 per cent above our estimates. Its revenues came in at ₹2,400 crore, up 6.6 per cent; broadly in line with our est.
Domestic formulations growth was 12 per cent. Export formulation was up 17 per cent at ₹530 crore above our estimare. . API sales remained flat at ₹410 crore. Export API was up 6 per cent, whereas domestic API declined 14 per cent. Revenues from subsidiaries, including Unichem, were at ₹560 crore.
The company has witnessed 400 bps gross margin expansion, ex Unichm, for 9MFY26, which should sustain, given product mix and softer raw material prices. Export API business witnessed recovery in 9MFY26 with 26 per cent growth.
Consolidated gross margins improved 230 bps to 72.5 per cent. There was forex loss to the tune of ₹3.5 crore booked under other expenses. Adjusted for forex, other expenses were up 2 per cent. EBITDA adjusted for forex gain came in at ₹530 crore, up 19 per cent vs our est of ₹480 crore. . Adjusted for Unichem, EBITDA growth was at 35 per cent with OPM of 25.9 per cent. PAT came at ₹310 crore, up 31 per cent.
We believe recovery in API segment, higher margins ex Unichem, steady growth in domestic formulation are the key growth drivers. We maintain our “Buy” rating on stock with revised TP of ₹1,710/share; valuing at 17x EV/EBITDA on FY28E.
Published on February 18, 2026
