Ipca Laboratories reports improved margins and steady growth in Q2 FY26

Ipca Laboratories reported an 8% growth in its domestic formulation business for Q2 FY26, despite GST rate rationalizations in September 2025. The company's market share, as per IQVIA, improved from 2.3% to 2.8% in MAT September 2025. The API business saw a significant 28% growth, reaching INR408 crores, driven by strong performance in Europe and Latin America.

Consolidated EBITDA margin for Q2 FY26 increased by 2.58% to 21.68% from 19.1% in Q2 FY25. The company projects an overall API business growth of 14% to 15% for the current financial year. R&D expenditure is expected to remain around 4% of turnover in FY26, potentially increasing to 4.5% or 4.75% in the next financial year due to biosimilar clinical trials.

Unichem's integration is progressing, with 12 product dossiers filed in European and other markets, targeting an 8% to 10% growth in its U.S. business on a standalone basis. Unichem's Ireland facility closure and the transfer of manufacturing to Baddi are expected to cut €3.5 million to €4 million in annual expenditure.