Ipca Labs. Q2 FY27 Results (NSE: IPCALAB)
Signal: Margin expansion
The read
Ipca delivered another solid quarter with consolidated revenue growing 13.8% YoY and operating profit before exceptional items rising 27.0% YoY, aligning well with its 14-16% FY27 top-line guidance, while finance costs dropped 39.4% on steady deleveraging.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,909.94 Cr | +13.82% | +4.37% |
| EBIT | ₹583.31 Cr | +24.25% | |
| Net profit | ₹375.13 Cr | +32.76% | |
| EPS | ₹14.79 | +32.76% | |
| EBIT margin | 20.05% |
P&L walk
Topline expanded 13.8% YoY while operating profit before exceptional items grew 27.0% YoY, aided by lower finance costs.
Key positives
- Consolidated revenue grew 13.82% YoY to ₹2,909.94 Cr, maintaining double-digit momentum.
- Finance costs fell 39.42% YoY to ₹11.88 Cr due to net debt reduction.
- Profit before exceptional items and tax expanded 27.03% YoY to ₹571.43 Cr.
- Standalone gross margin expanded 197bps YoY to 65.34%.
Key concerns
- Exceptional item of ₹24.26 Cr provision for claims recorded in Q2FY27.
- H1 operating cash flow decreased 26.5% YoY to ₹573.32 Cr due to working capital additions in receivables (₹364.57 Cr) and inventory (₹206.78 Cr).
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