Indegene FY26: Revenue re-accelerates as GenAI moves from pilots to mandates

Indegene closed FY26 with its strongest growth in three years and crossed two milestones in the same quarter. Revenue from operations for FY26 was ₹35,105 million (₹3,510.5 crore), up 23.6% year on year in INR terms and 18.2% in USD terms. Q4 FY26 revenue rose to ₹10,034 million (₹1,003.4 crore), up 32.8% YoY and 6.5% QoQ.

Profitability was steady on an adjusted basis but noisy on reported numbers due to hedging mark-to-market, one-time costs and an exceptional legal provision. FY26 adjusted EBITDA was ₹6,793 million at a 19.4% margin, while reported EBITDA was ₹6,247 million at 17.8%. Reported profit after tax was ₹4,011 million (₹401.1 crore), a 1.4% decline YoY. Operating cash flow was a standout, rising to ₹6,508 million with an OCF to PAT ratio of 162%, supported by better collections and improved DSOs.

Growth was broad-based across clients and offerings

Management attributed FY26 performance to both deeper engagement in large accounts and expansion across the broader client base. Active client relationships increased to 91 from 73 in FY25. The number of USD 1 million plus clients rose to 53 from 41, reflecting deeper wallet share and a wider revenue pyramid.

The client concentration metrics also improved. As of March 31, 2026, the top client contributed 9.3% of trailing twelve months revenue. The top 5 contributed 31.2%, top 10 contributed 47.3%, and top 20 accounted for 68.6%. While still concentrated, the direction suggests better diversification.

On service mix, the company continued to skew towards Enterprise Commercial Solutions. For FY26, Enterprise Commercial Solutions contributed 70.1% of revenue, Enterprise Medical Solutions 26.5%, and Others 3.4%.

Note: Adjusted numbers exclude mark-to-market impact on FX contracts, one-time expenses and exceptional items as disclosed by the company.

GenAI strategy: from tools to operating models

The investor presentation and the earnings call both leaned heavily on the GenAI narrative, but with a specific industry framing. Management argued that Indegene operates as a revenue partner embedded in commercial and medical functions, and that much of its work is judgment-intensive and compliance-heavy. This positioning is important because it supports a shift away from effort-based billing and towards outcome-aligned commercial models.

The company laid out multiple GenAI “north stars” described as live or in advanced development across three areas.

In Commercial, it highlighted agentic content creation and AI-embedded omnichannel engagement using platforms such as Tandem and Invisage, with deployments referenced at top pharma customers. In Medical Affairs, it spoke about targeting sub-24-hour review cycles through GenAI-assisted MLR and a NEXT Medical Writing Platform already active across clients. In Regulatory, it referenced offerings such as one-click submissions and label management with global rollout underway.

Alongside product roadmaps, management connected AI adoption to productivity metrics. Revenue per employee increased to USD 74,693 in FY26 from USD 66,862 in FY25. The CEO and CFO linked this to a combination of technology embedded into delivery and the company’s output or outcome-based pricing approach.

Why reported profits fell while cash improved

FY26’s financial story had a clear split between underlying operating performance and reported results. The company disclosed a hedging accounting change, designating forward contracts as cash flow hedges starting January 1, 2026. Mark-to-market losses on open FX contracts booked up to December 2025 resulted in an MTM charge of ₹398 million for FY26 and ₹241 million for Q4 FY26.

The company also recorded one-time expenses of ₹148 million in FY26 related to acquisitions and restructuring. In Q4, it recorded an exceptional item of ₹203 million as a one-time provision towards the estimated cost of settling a U.S. class action lawsuit alleging breach of the Telephone Consumer Protection Act. The CFO stated that mediation was close to completion, terms were being drafted, and court approval was still awaited.

Despite these items, cash generation remained strong. Operating cash flow grew to ₹6,508 million, supported by non-cash charges and DSOs improving to 63 days. Cash and investments stood at ₹15,385 million at March 31, 2026.

FY27: no revenue guidance, but clear operational signals

Management did not provide formal revenue guidance for FY27. However, both the CEO and CFO described the pipeline as stronger, more balanced and better qualified than the prior year-end. They highlighted two expected drivers of FY27 conversion.

First, scaling of GenAI-linked mandates across both Enterprise Commercial and Enterprise Medical. Second, the company’s Tectonic model, which management described as a GenAI plus creative transformation approach aimed at compressing traditional agency cycles. The CEO stated Tectonic had secured five customers, with two moving from pilots to long-term engagements, and positioned it as a material growth driver in FY27.

On margins, the CFO stated the company expects profitability and EBITDA margins to improve in FY27, with the second half of FY27 reverting to earlier higher margin levels as prior investments get absorbed. The CFO also guided net DSO to stabilize in the mid-60s to 70 days range.

The company also announced a final dividend of ₹2.25 per share for FY26, up 12.5% YoY, subject to shareholder approval.

Takeaways

Indegene’s FY26 performance showed clear revenue re-acceleration with stable adjusted margins and stronger cash conversion. The company’s strategy is tightly tied to GenAI-driven operating model change inside regulated life sciences workflows, with management claiming these initiatives are already live and moving into larger mandates.

The near-term watch items are equally clear: normalization of reported profitability after MTM and one-offs, progress on the legal settlement approval, and whether margin recovery in the second half of FY27 plays out as management expects. If GenAI pilots convert into repeatable, outcome-based contracts at scale, the company’s FY26 momentum could extend into a multi-year growth phase.