Indegene Ltd reported flat net profit of ₹116.20 crore for the quarter ended June 2026, representing a 0.17% decline from ₹116.40 crore in the corresponding quarter last year. Despite the marginal profit decline, the company achieved strong double-digit revenue growth of 39.73% year-on-year to ₹1,063.10 crore from ₹760.80 crore in the previous year. According to Business Standard, the company's EBITDA increased 12.2% to ₹174.20 crore from ₹155.3 crore year-on-year, but EBITDA margin contracted sharply to 16.4% from 20.4% in the previous year. The 400-basis-point decline in EBITDA margin indicates that costs rose significantly faster than revenue, reducing operating profitability despite healthy topline growth.
According to CNBC TV18, Indegene expects revenue growth in FY27 to surpass last year's 23-24% as a strong deal pipeline, new client additions and steady demand from life sciences companies support momentum. The company's CFO Suhas Prabhu indicated that growth was driven by both existing customers and new client additions, with more than five contract wins above $1 million in annual contract value (ACV), including one worth over $3 million. The company expects operating margins to recover to the 19-20% range by the January-March 2027 quarter as recent investments begin to normalise. Prabhu noted that the April-June 2026 quarter performance reflected sustainable demand rather than one-off revenue recognition, with conversion rates remaining healthy across multiple quarters.
As reported by CNBC TV18, Indegene's revenue per employee hit a record of $77,100 in Q1, up from $75,000 in the previous quarter. The company's CFO Suhas Prabhu explained that this trajectory shows revenue per employee increased from about $50,000-$55,000 four years ago to the current $77,000 level. The growth is attributed to two interlinked factors: GenAI-enabled solutions that offer technology-driven offerings rather than purely effort-based services, and the company's output-based revenue model where significant portions are charged on outcome rather than effort. This technology integration and engagement model enables higher-than-industry revenue per employee growth to be sustainable.
IDBI Capital has initiated coverage on Indegene Ltd. with a Buy rating and has set a target price of ₹620, according to reports from NDTV Profit. The brokerage values the stock at 22.5 times FY28E earnings per share, implying a potential upside of 22% from current levels. This marks IDBI Capital's entry into covering the life sciences commercialisation company, despite the recent margin pressures highlighted in Q1 results.
As reported by NDTV Profit, IDBI Capital highlighted that Indegene is the only listed, pure-play life sciences commercialisation company at scale, with global rivals like EVERSANA and Syneos (both private). The brokerage forecasts FY26-28E revenue/PAT CAGR of ~18%, supported by expanding margins, strong cash conversion, and a durable pharma-outsourcing moat. The company's 18%+ earnings growth comfortably supports a valuation toward the lower-middle end of Indian IT-services peer range, though recent margin challenges may impact near-term profitability. Indegene currently has a market capitalisation of $1.2 billion, while shares have declined more than 5% over the past year.
