Indoco Remedies Ltd. achieved a significant financial turnaround in the second quarter of FY27, reporting a consolidated net profit of ₹184 million compared with a net loss of ₹79 million in the corresponding period last year. The result also beat analyst estimates of a loss of ₹93 million, marking a complete reversal of the company's financial position and demonstrating improved bottom-line efficiency despite flat EBITDA margins. According to the latest financial reports, this represents a return to profitability for the pharmaceutical company.
The company's consolidated revenue from operations increased 7.4% year-on-year to ₹5,069 million, up from ₹4,718 million in the year-ago quarter. As reported by the latest financial data, EBITDA remained stable at ₹464 million, with margins holding steady at 9.2% compared to 9.1% at ₹431 million for the same quarter last year. The company's H1FY27 revenue grew 7.8% to ₹9,731 million, while H1FY27 EBITDA margins expanded by 230 basis points to 9% from 6.7% a year earlier, indicating better operational efficiency. The exceptional gain of ₹3,663 lakh from the sale of property in Mumbai contributed to the standalone profit before tax, with the company noting that reported profits were bolstered by non-operational assets disposal alongside core business growth.
Indoco Remedies demonstrated robust performance across multiple business segments in Q2FY27. The international formulations segment recorded impressive 21.1% growth, highlighting the company's strong regulated international business. The Active Pharmaceutical Ingredients (API) and Allied Services segments also demonstrated strong momentum, posting 22.0% and 27.4% growth respectively in the first half of FY27. Managing Director Aditi Panandikar attributed the results to improved business performance and enhanced operational efficiency, noting that the company is currently executing its "New Indoco – 80 Years Forward" strategy aimed at building a resilient and diversified pharmaceutical business.
Following the results announcement, Indoco Remedies shares were trading 3.42% higher at ₹227 on Tuesday, October 27. According to CNBC TV18, the stock was trading over 3% higher after the company reported the return to profitability along with growth in revenue and EBITDA. Despite the day's gains, the stock remains down around 1% so far in 2026. The transition from a net loss to a net profit in Q2FY27 highlights improved bottom-line efficiency despite flat EBITDA margins, with the profitability swing suggesting better management of below-EBITDA costs or non-operating items.
