Indoco Remedies Limited (INDOCO) share price

₹236.90 on NSE as of 2026-10-08. -3.91% on the day. market cap ₹2,187 Cr. P/E 740.3. 52-week range ₹164.00 to ₹296.85. Healthcare.

www.indoco.com

Indoco Remedies Q1 FY27: A ₹97 Cr Divestment Gain Turns a Five-Quarter Loss Streak Into a ₹65 Cr Profit

At a glance

Indoco Remedies makes finished medicines, the chemicals that go into them, and runs testing work for other drug companies. Revenue for the three months to June 2026 was ₹468 crore, against ₹440 crore a year earlier. The March quarter had brought in ₹476 crore. Operating profit was ₹41 crore, against ₹18 crore in the same quarter last year. Operating margin, the share of sales left after running costs, moved to 9% from 4%.

Net profit was ₹65 crore, ending five straight quarterly losses from September 2024 to March 2026. Sitting inside that figure is a one-off gain of ₹97.34 crore. The company completed the slump sale of its Ophthalmic Business Division to Sunways (India) Private Limited. A slump sale hands over a whole division as a working business for one lump sum. Profit before tax was ₹78 crore. Interest cost ₹28 crore in the quarter, down from ₹46 crore in the March quarter. Earnings per share, the profit attached to each share, was ₹7.04.

The full year that closed in March 2026 reads differently. Revenue was ₹1,845 crore, against ₹1,665 crore the year before. Operating profit was ₹142 crore and the net loss was ₹95 crore. Borrowings stood at ₹1,090 crore in March 2026, against ₹672 crore two years earlier. ICRA, a credit-rating agency, reaffirmed its long-term rating at [ICRA]A in September 2025, with a Negative outlook. It cited worsening revenues, operating margins and debt measures in the year to March 2025. It also cited continued weak performance in the three months to June 2025.

Management says the quarter's growth came from the domestic formulation business, which sells finished medicines in India. The auditors drew attention to a matter concerning one subsidiary.

Introduction

Indoco was founded in 1947, a week after Indian independence. It grew out of Indo-Continental Trading Company, which Govind Ramnath Kare had set up in 1945. That firm imported European medicines and sold them across western India. Suresh G. Kare took charge in 1963. Nearly eight decades on, the company runs ten manufacturing plants in India. Six make finished medicines and four make active ingredients, the chemicals that do the work in a pill. There is also a research centre with over 300 scientists, a clinical research arm and a global stability centre.

The past two years have been about regulators and building work rather than new products. ICRA, the credit-rating agency, notes that the United States drug regulator inspected Goa Plants II and III in February 2023. The plants were given official action indicated status in June 2023, the regulator's flag that enforcement may follow. A further audit came in February 2024, and a warning letter went to the site in December 2024. Alongside that, the company ran a master manufacturing plan, refurbishing sites at Goa, Waluj and Baddi. It also borrowed to fund building work at Warren Remedies, a wholly owned subsidiary, for toothpaste and active-ingredient plants.

Recent months have been busier on approvals. Baddi Plant III won European good-manufacturing certification after an inspection in April 2026. The United States regulator inspected the Patalganga active-ingredient plant in September 2025. It recorded no Form 483 observations, the list of problems an American inspector leaves behind after a factory visit. Final approval to sell a generic copy in America arrived for Lacosamide Oral Solution in January 2026. Brivaracetam Oral Solution followed in February 2026, and both are made at Verna in Goa. Generic Rivaroxaban tablets had won final approval in August 2025.

The board approved the slump sale of the ophthalmic division to Sunways for ₹110 crore on 30 April 2026. The transfer completed on 18 May 2026. Aditi Panandikar has been reappointed Managing Director for a term running from February 2027 to February 2032. Sudhir Kadam has been appointed Senior Vice President, Human Capital.

Business model

Three businesses sit on top of one another here: medicines, the chemicals inside them, and testing done for other firms.

Domestic formulations is the largest slice, at 53% of total revenues in the three months to June 2025, ICRA says. It sells into crowded areas: anti-infectives, respiratory, gastrointestinal and dental. These are mature molecules with a large number of competitors. ICRA, the credit-rating agency, puts it plainly: market share and pricing power remain low. The individual brands rank well. Cyclopam holds first place in gastrointestinal medicines and Karvol Plus first in respiratory. Sensodent-K is first in stomatologicals, meaning medicines for the mouth and teeth. Management said in July 2026 that the top five flagship brands make up 42% of the domestic portfolio. It put Cyclopam at ₹196 crore, with absolute growth of 44% since 2022.

Export formulations go to more than 55 countries. ICRA notes that regulated markets generated 68% of export formulation revenue. Those markets are the United States, Europe, South Africa, Australia and New Zealand. In the three months to June 2025, export formulations were 36% of revenue and active ingredients 10%, per ICRA.

Warren Remedies, the wholly owned subsidiary, is where the plan to lift margins became toothpaste. Management reported over-the-counter sales of ₹34 crore for the three months to June 2026. Over-the-counter means goods a shopper can buy without a prescription. Warren overall carried a marginal loss of about ₹6 crore. Management added that at least three years of consistent brand support will be required. The incumbents in that aisle have been advertising for longer than some of these plants have stood.

AnaCipher, the contract research arm in Hyderabad, works from a 150-bed facility. It runs bioequivalence, pharmacovigilance and clinical research. Bioequivalence testing checks that a copy of a medicine behaves in the body like the original. Pharmacovigilance is the tracking of side effects once a medicine reaches patients. Management put research and analytical revenue at ₹6.9 crore for the quarter.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Indoco Remedies Limited.

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