According to reports from Moneycontrol and The Hindu BusinessLine, Prabhudas Lilladher has issued a buy rating on Ipca Laboratories with a target price of ₹1,710 per share. The broker's research report dated February 17, 2026, recommends the stock based on strong operational performance and growth prospects. As per The Hindu BusinessLine, the current market price stands at ₹1,480.15, indicating significant upside potential from the target price. Recent market data shows the stock has experienced 17.12% positive change in February 2026, with an average positive change of 7.41% over the month.
As reported by Moneycontrol and The Hindu BusinessLine, Ipca Laboratories delivered robust financial results with EBITDA of ₹5.3 billion, representing a 19% year-on-year growth. The company's performance exceeded analyst estimates by 10%, demonstrating strong operational efficiency. The company has witnessed 400 basis points gross margin expansion excluding Unichem for the nine-month period of FY26, which is expected to sustain given the favorable product mix and softer raw material prices. The Hindu BusinessLine reports that consolidated gross margins improved 230 bps to 72.5%, while PAT came at ₹310 crore, up 31%. The company's revenue growth trajectory shows consistent expansion from ₹5,419.99 crore in 2021 to ₹8,939.59 crore in 2025, with net profit growing from ₹1,148.84 crore to ₹787.53 crore over the same period.
According to the reports, the export API business witnessed a significant recovery in the nine-month period of FY26 with 26% year-on-year growth. As per The Hindu BusinessLine, export formulation was up 17% at ₹530 crore above our estimates. The domestic formulation business continues to outperform with 40% of revenues and approximately 55% of EBITDA contribution. This diversified revenue base provides stability and growth potential for the company. The company's financial strength is evidenced by its debt-to-equity ratio improving from 0.25 in 2023 to 0.19 in 2025, indicating better financial management and reduced leverage.
As reported by Moneycontrol and The Hindu BusinessLine, at the current market price, the stock is trading at 15x EV/EBITDA and 24x PE on FY28E adjusted for Unichem stake. Prabhudas Lilladher maintains its buy rating with a revised target price of ₹1,710 per share, valuing the company at 17x EV/EBITDA on FY28E. The broker identifies recovery in the API segment, higher margins excluding Unichem, and steady growth in domestic formulation as key growth drivers for the company. The Hindu BusinessLine notes that adjusted for Unichem, EBITDA growth was at 35% with OPM of 25.9%, highlighting the company's strong operational performance. The company's EPS growth from ₹18.58 in 2023 to ₹35.14 in 2025 demonstrates consistent earnings expansion, while ROE improved from 8.06% to 10.61% over the same period, reflecting enhanced profitability.
