Q2 2026 IPCA Laboratories Ltd Earnings Call Transcript
Key Points
- Domestic formulation business grew by 8% in Q2 FY26, with a strong recovery in October following GST rate rationalizations.
- IPCA's market share improved from 2.3% to 2.8% as per IQVIA data, with growth outpacing the Indian Pharmaceutical Market (IPM) in both acute and chronic segments.
- API business saw a significant growth of 28% in Q2 FY26, driven by better business from Europe and Latin America.
- Stand-alone EBITDA margin improved to 25.46% in Q2 FY26 from 22.89% in Q2 FY25, indicating better operational efficiency.
- R&D spend increased to 3.91% of turnover, reflecting a commitment to innovation and future growth, with expectations to maintain around 4% for the year.
- Export formulation business declined by 9% in Q2 FY26 compared to the previous year, indicating challenges in international markets.
- Antimalarial segment experienced a decline of 8% in Q2 FY26, contributing to overall softness in certain therapeutic areas.
- Unichem's first-quarter performance was impacted by restructuring costs and market share loss in key products, affecting overall margins.
- Despite improvements, Unichem's EBITDA margins are expected to remain around 11% in the near term, with significant improvements only expected after regulatory approvals.
- R&D expenses are expected to increase further next year, potentially impacting short-term profitability as biosimilar projects advance to clinical trials.
Ladies and gentlemen, good day, and welcome to IPCA Laboratories earnings conference call Q2 FY26 hosted by DAM Capital. (Operator Instructions) Please note that this conference is being recorded.
I now hand over the call to Mr. Nitin Agarwal. Thank you, and over to you, sir.
Thank you. Hi, good afternoon, everyone, and a very warm welcome to IPCA Labs Q2 FY26 earnings call hosted by DAM Capital Advisors Limited. On the call today, we have representing IPCA Lab management, Mr. A.K. Jain, Managing Director; and Mr. Harish Kamath, Corporate Counsel and Company Secretary.
I will hand over the call to Mr. Jain to make the opening comments, and we will open the floor for questions subsequently. Please go ahead, sir.
Thank you. Thanks, Nitin, and DAM Capital for organizing this call. Today's hearing call and discussions and answer given may include some
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