Ipca Q2 standalone profit rises 27% as EBITDA margin reaches 26.61%

Ipca Laboratories Limited reported standalone net profit of Rs 387.29 crore for Q2 FY27, up 27% from Rs 304.74 crore a year earlier, while its EBITDA margin rose to 26.61% from 25.46%. Revenue from operations increased 17% to Rs 2,255.61 crore in the quarter ended September 30, 2026.

How did Ipca’s standalone Q2 profit and revenue change?

Ipca’s standalone profit after tax increased by Rs 82.55 crore year on year to Rs 387.29 crore in Q2 FY27. This exceeded the 17% increase in revenue from operations, which rose by Rs 325.29 crore to Rs 2,255.61 crore from Rs 1,930.32 crore in Q2 FY26.

Standalone net total income was Rs 2,274.53 crore, up 17%, for the three months ended September 30, 2026. Earnings per share after exceptional items was Rs 15.27 on a Re 1 face-value share, compared with Rs 12.01 in Q2 FY26, an increase of 27%.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, before foreign-exchange gain or loss, other income and exceptional items increased 22% to Rs 600.22 crore. Tax expense rose 41% to Rs 146.42 crore from Rs 103.57 crore, while depreciation and amortisation increased 16% to Rs 77.59 crore.

How did Ipca’s Q2 EBITDA margin change?

Ipca’s standalone EBITDA margin before foreign-exchange gain or loss, other income and exceptional items expanded by 1.15 percentage points to 26.61% in Q2 FY27. The margin was 25.46% in Q2 FY26, while standalone EBITDA increased by Rs 108.75 crore to Rs 600.22 crore.

Finance cost declined 59% to Rs 4.68 crore from Rs 11.46 crore, a reduction of Rs 6.78 crore. Other income declined 14% to Rs 18.92 crore from Rs 21.92 crore, while the reported foreign-exchange gain or loss figure was Rs 3.16 crore in Q2 FY27 against Rs 26.76 crore a year earlier.

The margin increase coincided with higher revenue from operations rather than a reduced sales base. Ipca recorded standalone revenue of Rs 2,255.61 crore and EBITDA of Rs 600.22 crore in Q2 FY27, compared with Rs 1,930.32 crore and Rs 491.47 crore, respectively, in Q2 FY26.

Which Ipca businesses delivered Q2 revenue growth?

Ipca’s total formulations revenue rose 20% to Rs 1,809.94 crore in Q2 FY27, making it the largest disclosed component of standalone revenue. Domestic formulations income increased 14% to Rs 1,157.20 crore, while the company reported growth in branded, institutional and generic export formulations.

Generic export revenue increased 36% to Rs 364.48 crore from Rs 268.01 crore. Institutional exports rose 45% to Rs 115.76 crore, branded exports grew 19% to Rs 172.50 crore, and total standalone export income increased 17% to Rs 951.39 crore.

Ipca’s active pharmaceutical ingredients revenue increased 6% to Rs 434.21 crore, but its domestic and export components moved in opposite directions. Domestic active pharmaceutical ingredients revenue rose 56% to Rs 135.56 crore, whereas exports declined 7% to Rs 298.65 crore; other operating income increased 5% to Rs 11.46 crore.

How did Ipca’s consolidated Q2 results compare?

Ipca’s consolidated profit after tax rose 33% to Rs 375.13 crore in Q2 FY27 from Rs 282.57 crore in Q2 FY26. The increase outpaced the 14% rise in consolidated revenue from operations to Rs 2,909.94 crore, while consolidated net total income reached Rs 2,934.97 crore from Rs 2,584.36 crore.

Consolidated EBITDA increased 21% to Rs 668.27 crore from Rs 554.31 crore, and the corresponding margin expanded to 22.97% from 21.68%. The consolidated margin was 3.64 percentage points below the standalone margin of 26.61% in Q2 FY27.

Consolidated exceptional items were Rs 24.26 crore in Q2 FY27, compared with Rs 58.26 crore in Q2 FY26. Finance cost fell 36% to Rs 12.57 crore, depreciation and amortisation rose 11% to Rs 114.51 crore, and tax expense increased 44% to Rs 155.63 crore.

What do Ipca’s first-half figures show?

Ipca’s standalone profit after tax for H1 FY27 rose 34% to Rs 760.58 crore, while revenue from operations increased 19% to Rs 4,374.85 crore. H1 FY27 covers the six months ended September 30, 2026, during which standalone EBITDA increased 27% to Rs 1,157.04 crore.

Standalone EBITDA margin for H1 FY27 was 26.45%, compared with 24.68% in H1 FY26, an expansion of 1.77 percentage points. H1 export income increased 25% to Rs 1,886.78 crore, exceeding the 13% growth in Indian formulations income to Rs 2,239.32 crore.

On a consolidated basis, H1 FY27 profit after tax increased 51% to Rs 777.02 crore from Rs 515.78 crore, while revenue from operations grew 17% to Rs 5,698.04 crore. Consolidated EBITDA margin rose to 22.92% from 20.12%, and earnings per share after exceptional items increased to Rs 30.63 from Rs 20.33.

Conclusion

Ipca’s Q2 FY27 performance combined 17% standalone revenue growth with a 1.15-percentage-point EBITDA-margin increase and a 27% rise in profit after tax. Formulations revenue increased 20%, led by 36% growth in generic exports and 45% growth in institutional exports, while total active pharmaceutical ingredients revenue grew 6% as domestic growth offset lower exports.

The release does not provide a financial target, guidance or a scheduled future event. A reporting matter to watch in future consolidated disclosures is the inventory-cost-policy harmonisation at a subsidiary, where the weighted-average method was changed to first-in, first-out; its special-purpose H1 FY27 results before intra-group eliminations included Rs 1,303.82 crore of revenue and Rs 61.13 crore of profit after tax.