Indoco Remedies Releases Q4 FY26 Earnings Call Transcript

Indoco Remedies Limited has released the transcript of its Earnings Conference Call held on May 07, 2026, to discuss the Audited Standalone and Consolidated Financial Results for the Quarter and Year Ended March 31, 2026. The call featured insights from Managing Director Ms. Aditi Panandikar, Joint Managing Director Mr. Sundeep Bambolkar, and CFO Mr. Pramod Ghorpade.

Ms. Panandikar highlighted a return to positive performance after six quarters, driven by strong growth in the international formulations business, both in regulated and emerging markets. While the Indian market saw muted performance due to seasonal factors and impacts on anti-infectives and respiratory segments, product prescriptions showed fundamental strength. Key developments included US FDA approval for ANDAs of liquid orals for Brivaracetam and Lacosamide, the launch of a new brand extension for Cyclopam in India, and the Patalganga API plant achieving an EcoVadis score. Rexidin-M Forte gel was noted as the most prescribed stomatological brand. The company also entered an agreement to hive off its ophthalmic business in India and Africa to Sunway, aiming to focus on core ethical business areas. The OTC business also performed well, with efforts to expand its presence in various retail channels underway.

Mr. Bambolkar detailed the financial highlights: Standalone net revenues for Q4 FY26 were ₹429.1 crore, a 25.8% increase year-on-year. Consolidated net revenues stood at ₹455.9 crore, an 18.8% increase year-on-year. Standalone EBITDA to net sales improved to 14.7% (₹63 crore) from 1% last year, while consolidated EBITDA to net sales was 10.9% (₹49.7 crore) compared to -0.2% last year. The international formulation business saw significant growth of 94.6% to ₹214.7 crore, with US business up 77.5% to ₹54.6 crore and Europe up 68.7% to ₹78.6 crore. API business de-grew by 23% to ₹31.5 crore, while services (CRO) grew by 65.3% to ₹89.5 crore.

During the Q&A, concerns were raised regarding the increase in receivables, particularly from emerging markets with longer credit periods, and overall debt levels. The management confirmed efforts to reduce borrowings and manage working capital. The company also addressed the performance of its domestic business, explaining the lag between prescription growth and sales, and discussed the strategic rationale behind hiving off the ophthalmic business. Future growth drivers for regulated markets, including Europe and the US, were highlighted, focusing on expanding the solid oral and liquid oral portfolios. The company also provided an update on its debt repayment commitments and clarified that no major CAPEX is planned for the next two years. Discussions also touched upon the performance of Warren Remedies and the ongoing validation processes for the API plant.