IPCA Laboratories Limited (IPCALAB)
Large CapPharma stocks · Large cap · NSE
Ipca Laboratories Limited is an Indian pharmaceutical company engaged in domestic and export formulations, and API manufacturing. It operates in branded, generic, and institutional segments, with a significant presence in India, US, Europe, and other international markets. The company also has a subsidiary, Unichem, and an associate, Lyka Labs.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +21% YoY · PAT +82% YoY · margin expansion · +17% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,788 Cr | +20.7% | +16.8% |
| EBITDA | ₹670 Cr | +61.1% | +38.4% |
| Operating margin | 24.0% | +600 bps | +400 bps |
| PAT | ₹424 Cr | +82.0% | +38.1% |
| PAT margin | 15.2% | +512 bps | +235 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Ipca reports solid FY26 consolidated revenue growth of 8% to INR 9,646 crores, with EBITDA margins improving to 20.72%. Domestic formulations grew 10%, export formulations 9%, and US business 14%.
Management delivered on FY26 consolidated EBITDA margin guidelines, driven by product mix changes and strong domestic/export growth. While raw material and freight costs are rising, management expects to offset these, guiding for 12-13% consolidated growth and improved margins in FY27. Unichem's turnaround is key.
Domestic Formulations
Domestic business is continuously beating the market in both chronic and acute segments, with a policy to take 5-6% price rises annually.
US Generics Pipeline
Ipca expects to commercialize 6-8 products in the US in FY27, while Unichem plans to launch at least 5-6 products in the current year.
ROW Generics Expansion
Generic business in Europe, Australia, and New Zealand has performed well, contributing to overall growth and improved margins.
Cardiac Business
The proportion of cardiac business has moved up, contributing to overall margin improvement on a standalone basis.
US Formulation Facility
A formulation facility at Pisgah Labs (US subsidiary) is under construction and expected to be ready for commissioning in Q4 FY27.
Product Mix Improvement
Overall margin improvement is largely due to product mix changes, with domestic, ROW, cardiac, and generic businesses doing well.
API Cost Pass-Through
For API sales, the company is passing on the entire cost increase to buyers, mitigating margin impact.
Unichem Ireland Facility Closure
Closure of the Ireland facility and shifting production to India will stop EUR 4-5 million in overhead costs, improving Unichem's margins.
Raw Material Price Increases
Overall material costs are expected to rise by 10-12% due to increases in packaging materials, solvents, and certain APIs like paracetamol and metformin.
Elevated Freight Costs
Freight costs increased by almost 25% in Q4 FY26 and this trend is continuing due to geopolitical issues (Iran-US conflict, Strait of Hormuz), impacting profitability.
Unichem Margin Decline
Unichem's EBITDA margins declined from 12% to 8% in FY26 due to loss of market share in certain high-volume US businesses and additional costs.
Institutional Business Decline
Institutional business declined 24% in FY26 due to funding constraints faced by institutions.
Raw Material Price Volatility
Current 10-12% increase in material costs, if sustained or further elevated, could pressure margins despite efforts to pass on costs.
Geopolitical Impact on Logistics
Ongoing geopolitical conflicts are causing elevated freight costs and cargo availability issues, potentially impacting supply chain efficiency and costs.
Competition in US Generics
Unichem lost market share in certain high-volume US businesses, indicating competitive pressures in the generic market.
Institutional Funding Constraints
The decline in institutional business due to funding constraints suggests a vulnerability to public health spending policies and budgets.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company primarily reports full-year (FY26 vs FY25) and quarterly (Q4 FY26 vs Q4 FY25) comparisons, which are more indicative of underlying business trends and performance in the pharmaceutical sector, which can have seasonal variations.
Domestic Formulations Growth
Domestic formulation business grew 12% in Q4 FY26 (INR 853 crores vs INR 764 crores in Q4 FY25) and 10% for FY26 (INR 3,817 crores vs INR 3,455 crores in FY25).
US Business Growth (Consolidated)
Consolidated US business grew 10% in Q4 FY26 (INR 428 crores vs INR 388 crores in Q4 FY25) and 14% for FY26 (INR 1,567 crores vs INR 1,379 crores in FY25).
Export Formulations Growth
Export formulation business grew 9% for FY26 to INR 2,083 crores from INR 1,919 crores in FY25. Promotional branded export grew 14% for FY26.
API Business Growth
API business grew 10% for FY26 to INR 1,396 crores from INR 1,266 crores in FY25.
FY27 Consolidated Growth Guidance
Management expects overall company consolidated growth of around 12-13% for FY27, including Unichem.
FY27 Consolidated EBITDA Margin Guidance
Consolidated EBITDA margin is projected to improve to around 22-22.3% in FY27 from 20.72% in FY26.
FY27 Unichem Margin Outlook
Unichem's margin is expected to improve to around 12-13% in FY27, driven by US business growth and cost savings from the Ireland facility closure.
Domestic Price Increase Strategy
The company plans to take a slightly higher price rise of 6-7% in the domestic market in FY27 to offset input cost increases.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated EBITDA Margin | 20.72% (FY26) | Achievement of FY27 guidance of 22-22.3%. |
| Unichem EBITDA Margin | 8% (FY26) | Improvement towards the FY27 guidance of 12-13%. |
| Raw Material Cost Trends | 10-12% increase | Stabilization or decline in key raw material prices and effective pass-through. |
| Freight Costs | 25% increase in Q4 FY26 | Moderation of freight costs and impact on overall profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
75Bullishfull bull SMA stack · SMA20 +5.5% / mo · MACD + · near 52W high · sector +2.2pp vs Nifty (3M)
Technical chart
IPCALABdaily · 1Y · AUTO+30.9%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 65.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~5.2% over last month) — short-term momentum positive.
- RSI(14) at 65 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 20.5% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +3.5%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 43 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 43 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Cash flow contributes 7/10 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -372.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 93rd percentile of the scored universe and 90th percentile within Pharma. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 90th pctile, median 70 · Large: 83rd pctile, median 73
64 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.8%.
- ▸10 years of positive FCF.
- ▸Debt/equity is 0.10.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 36.30
- P/B
- 6.18
- EV/EBITDA
- 19.04
- Market Cap
- 49860.00Cr
Profitability
- ROE
- 15.70%
- ROCE
- 17.00%
- ROA
- 11.13%
- Dividend Y
- 0.31%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 1.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 37.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 32.35×
- Altman Z
- 8.56
- Book Value
- 318.00
Cash Flow
- FCF Yield
- 1.80%
- FCF Positive Y
- 10/5
- OCF
- 1142.00 Cr
- EPS TTM
- 51.63
Shareholding
- Promoter Hold
- 44.72%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 95%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Pharma, ranked by similarity
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.