Ipca Laboratories Q1 2026 earnings beat estimates, raises guidance

Ipca Laboratories Ltd. on Friday reported fiscal first-quarter 2026 earnings that exceeded analyst estimates, while also lifting its full-year guidance as robust demand in domestic and export markets supported revenue growth.

The Mumbai-based generic drugmaker said net profit rose to 5.8 billion rupees ($69.5 million) in the quarter ended June 30, up 12% from a year earlier. Revenue increased 14% to 34.2 billion rupees, driven by higher sales of cardiovascular and anti-infective medications.

Analysts polled by Refinitiv had expected net profit of 5.2 billion rupees and revenue of 33.5 billion rupees for the quarter. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin expanded to 22.1%, from 20.8% a year ago, reflecting operational efficiency gains.

Ipca also raised its fiscal 2026 revenue guidance to a range of 140 billion to 145 billion rupees, up from its prior forecast of 130 billion to 135 billion rupees. The company cited strong order books in key markets, including the U.S. and Europe, as well as steady growth in domestic formulations.

Chief Executive Officer Premchand Godha said the improved outlook reflected "sustained momentum" in the company’s core therapeutic segments and successful execution of its expansion strategy. "We remain focused on scaling our export footprint while maintaining leadership in the Indian market," Godha said in a statement.

The company’s shares were indicated 1.8% higher in Mumbai trading on Friday, outperforming the broader Nifty Pharma index, which rose 0.7%. Ipca has gained about 15% over the past 12 months, compared with a 5% decline in the Nifty 50.

Analysts at ICICI Securities maintained a buy rating on the stock, citing the earnings beat and raised guidance as catalysts for further upside. The firm set a 12-month target price of 1,800 rupees, implying a potential 20% upside from current levels.

Ipca Laboratories, which operates manufacturing facilities in India and the U.S., is among India’s largest generic drugmakers, with a portfolio spanning over 300 formulations across multiple therapeutic categories.