Indoco Remedies Ltd (INDOCO) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Indoco Remedies Q2 FY27 earnings call hosted by Dolat Capital. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you
Moderator: questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Rashmi Shetty from Dolat Capital. Thank you, and over to you, ma'am.
Rashmi Shetty (Dolat Capital): Thank you, Iqra. And good afternoon, everyone. I, Rashmi Shetty, on behalf of Dolat Capital, welcome you to the Q2 FY '27 earnings call of Indoco Remedies. We thank the Indoco Remedies management for giving us this opportunity to host the call. Today, we have with us the senior management of the company represented by Ms. Aditi Panandikar, Managing Director; Mr. Sundeep Bambolkar, Joint Managing Director; Mr. Pramod Ghorpade, CFO. I will now hand over the call to the management for the opening remarks. Over to you, sir.
Pramod Ghorpade (Indoco Remedies Ltd): Thank you, Rashmi. Good afternoon, everyone. Thank you all for joining this call today. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are projections or estimates about our future events. These estimates reflect the management's current expectation of the future performance of the company. Please note that these estimates involve involve several risks and uncertainties that include a cause for actual results to differ materially from what is expressed or implied. Indoco does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new confirmation, future events or otherwise. Now I'll request our Managing Director, Ms. Aditi Panandikar, for her opening comments. Thank you. Over to you, ma'am.
Aditi Panandikar (Indoco Remedies Ltd): Good afternoon, everyone, and a very warm welcome to Indoco Remedies Q2 FY '27 earnings call. The second quarter of FY '27 marks an important milestone in Indoco's growth journey. Despite a dynamic operating environment and near-term challenges, we have continued to make progress across key business segments, strengthening strengthened our operating performance, and advanced our long-term strategic priorities. I'm particularly pleased to share that, for the first time, Indoco has crossed the 500-crore mark in quarterly consolidated revenues, recording 5,069 million in Q2 FY '27. While we have made encouraging progress in improving our operating profitability, the expansion in margins was partially impacted by increase in material costs along with elevated freight costs arising from ongoing geopolitical conflicts. Despite these external cost pressures, we remain focused on driving operational efficiencies, strengthening cost management, and improving profitability. These results reflect the progress we are making in strengthening our operating performance and building a more resilient business. Moving to our domestic operations, our domestic formulations business continues to benefit from established brands, strong prescription franchises, and leadership positions across select therapeutic categories. While the business has faced near-term challenges, we are encouraged by the continued strength of several of our core brands and the growth opportunities emerging from priority therapies. Cyclopam has further strengthened its position as a flagship brand, crossing the 200-crore threshold, and now at a sales of 206 crore, and maintaining its number two position in the antispasmodics and anticholinergics market. Our gastrointestinal portfolio recorded encouraging growth of 30.3% during the quarter, while our stomatologicals business grew by 34.8%, reinforcing the strength of our differentiated brand portfolio. We are also seeing promising traction in our newer introductions and emerging brands. These products represent an important growth opportunity as we continue to deepen our prescription reach, strengthen our presence in priority therapies, and build the next generation of brands for Indoco. Our focus remains on improving the performance of our domestic franchise through sharper execution, stronger field force productivity, disciplined brand investments, and a continued emphasis on high-potential therapeutic segments. We believe these initiatives will help us progressively strengthen our domestic growth trajectories. Turning to our international operations, happy to share that Plant 1 at Goa had a
Aditi Panandikar (Indoco Remedies Ltd): successful MHRA audit. And as we just got the message today and the release has been made earlier this day, the our CRO AnaCipher has also cleared the ANVISA inspection. Our International Formulations business delivered a strong performance. We witnessed encouraging momentum across regulated markets, particularly the United Kingdom and Europe, alongside strong growth in USA and Latin America. This performance reflects the strength of our international platform, our established customer relationships, and our growing capabilities in contract research and manufacturing services. Regulated markets remain an important pillar of our growth strategy. We continue to leverage our regulatory-approved manufacturing infrastructure, development capabilities, and customer partnerships to pursue higher-value opportunities and strengthen our presence across established and emerging markets. Our API business has also continued to demonstrate great resilience. Our integrated API capabilities remain strategically important in strengthening supply chain security, supporting our formulation portfolio, and enhancing our competitiveness. Additionally, our allied services businesses, comprising of Indoco Analytical Solutions and AnaCipher, the CRO, continue their encouraging growth trajectory. We believe these capabilities will play an increasingly important role in strengthening our development and research platform, while creating opportunities for future business expansion. As we look ahead for the second half of FY '27, our priorities are clear: strengthening domestic brand performance, accelerating international growth, and improving operational efficiency while building capabilities that support sustainable profitability. We will remain focused on disciplined execution, prudent resource allocation, and investments that create long-term value. This year is specially significant for Indoco, as we are progressing towards celebrating our 80 years of existence. For 79 years, trust, integrity, and nurturance has been the foundation of our journey. As we move ahead, our renewed focus on accountability, meritocracy, agility, and resilience reflect our commitment to build a stronger, more agile, and competitive organization. We are New Indoco, 80 years forward. We recognize that there is more work to be done, particularly in strengthening our domestic performance. However, the progress across our International Formulations, API, and allied service businesses, together with improving operating matrices and continued strength of our core brands, gives us confidence in the opportunities that lie ahead. We remain optimistic about Indoco's long-term growth prospects and firmly committed to building a more resilient, innovation-driven, and profitable pharmaceutical business that delivers sustainable value for our shareholders and stakeholders. Thank you. I will now hand over the floor to Mr. Sandeep to present to you the details of the financial highlights for the quarter.
Sundeep Bambolkar (Indoco Remedies Ltd): Thank you, Aditi. Good afternoon, everyone. Let me first begin with the financial highlights. Standalone revenue, net revenue of the company for the second quarter '26-'27 grew by 2% at Rs. 4,381 million compared to Rs. 4,293 million for the same quarter last year. Consolidated net revenues of the company for the second quarter '26-'27 grew by 7.4% at 5,069 million compared to Rs. 4,718 million. Standalone EBITDA to net sales for the quarter is 9.2% at Rs. 403 million compared to 12.4% at Rs. 534 million. And for the immediately preceding quarter, EBITDA is 10.3% at Rs. 422 million. Consolidated EBITDA to net sales for the quarter is 9.2% at Rs. 464 million compared to 9.1% at Rs. 431 million. And for the immediately preceding quarter, EBITDA is 8.8% at Rs. 410 million. Domestic Formulation Business: Revenues from domestic formulation business for the quarter are at Rs. 2,128 million compared to Rs. 2,261 million. Major therapeutic segments like Stomatology, Gastrointestinal, Urology, and Dermatology performed
Sundeep Bambolkar (Indoco Remedies Ltd): well during the quarter as compared to the same quarter last year. On the International Formulation business front, revenues from International Formulation business grew by 12.1% at Rs. 1,720 million compared to Rs. 1,533 million. Revenues from regulated markets for the quarter grew by 21.1% at Rs. 1,109 million as against Rs. 915 million. Revenues from US business for the quarter grew by 16.4% at Rs. 391 million as against Rs. 336 million. Revenues from Europe for the quarter grew by 23.5% at Rs. 675 million as against Rs. 547 million. Revenues from South Africa, Australia, New Zealand grew by 31.2% at Rs. 43 million against Rs. 33 million. Revenues from emerging markets for the quarter are at 612 million against Rs. 618 million. Revenues from API business for the quarter grew by 4.6% at Rs. 451 million against Rs. 431 million. And finally, revenues from AnaCipher CRO and Indoco Analytical Solutions for the quarter grew by 20.8% at Rs. 82 million against Rs. 68 million. That is all about the business highlights for the second quarter, and I now request the participants to put forth their questions. Thank you all.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nirman from Unique PMS. Please go ahead.
Nirman (Unique PMS): Hello, am I audible?
Moderator: Yes, you are audible.
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