1. At a Glance
Q1 FY26 was a medicinal bitter pill for Indoco Remedies: Revenue at ₹438 Cr, but PAT a negative ₹36 Cr. That’s not a typo, that’s a trend. Margins went from “meh” to “flatline,” and USFDA gave a not-so-loving slap in FY25. Yet, the company’s still pushing launches, approvals, and hoping its heartbeat stabilizes soon.
2. Introduction with Hook
If Indoco Remedies were a patient, the doctor would say: “Stable, but not out of ICU.” With four consecutive loss-making quarters, rising interest costs, and regulatory warnings, it’s basically the Grey’s Anatomy of pharma stocks — endless drama, occasional recovery, lots of painkillers.
Yet, they still get FDA approvals. Still launch new products. Still attract investor eyeballs. Go figure.
3. Business Model (WTF Do They Even Do?)
Indoco is a formulations-focused pharma company that also dabbles in APIs. But really, they manufacture pain relief for others and pain for shareholders lately.
- Domestic Formulations (48% of revenue):
Gastro, dental, cardio, diabetology – basically the syllabus of MBBS in one company. - International Business:
Exporting tablets to the US, UK, Europe. Also exporting responses to warning letters. - CDMO & API:
Like side hustles – helps pay some bills, doesn’t drive the story.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|
| Revenue (Cr) | 1,669 | 1,817 | 1,665 | 1,671 |
| PAT (Cr) | 142 | 97 | -78 | -116 |
| OPM (%) | 17% | 13% | 6% | 4% |
| ROCE (%) | 17% | 10% | -0.5% | – |
Margins dropped faster than paracetamol prices during COVID.
From 21% peak OPM to 4% now. The balance sheet’s sweating.
5. Valuation
- P/E (TTM): Not applicable (because: losses)
- CMP/Book Value: 2.9x (Book Value = ₹111)
- Fair Value Range (Ballpark):
- Assuming recovery to ₹100 Cr PAT → P/E 15–20x: ₹180–240
- Reality check (current loss): FV closer to ₹150 until EBITDA makes a comeback
Right now, you’re paying for a turnaround story. Or a tragedy. Time will tell.
6. What’s Cooking – News, Triggers, Drama
More plot twists than a pharma soap opera:
- USFDA warning letter (Dec 2024) – red flag for exports
- May 2025: Launched Ticagrelor tablets in UK (cardio segment)
- 2024–25: Multiple USFDA ANDA approvals – Pregabalin, Allopurinol, etc.
- Joint venture with Clarity Pharma
- Tax demand (March) + GST notice (May) – Because drama must continue
This company files more forms than profits lately.
7. Balance Sheet
| Metric | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Equity Capital (₹Cr) | 18 | 18 | 18 |
| Reserves (₹Cr) | 1,010 | 1,091 | 1,004 |
| Borrowings (₹Cr) | 333 | 672 | 994 |
| Total Liabilities (₹Cr) | 1,658 | 2,145 | 2,430 |
| Total Assets (₹Cr) | 1,658 | 2,145 | 2,430 |
Borrowings tripled in 2 years. So did indigestion. They’re either planning something massive or just patching up losses with EMIs.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹Cr) | CFI (₹Cr) | CFF (₹Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | 179 | -208 | 23 | -7 |
| FY24 | 157 | -433 | 280 | +4 |
| FY25 | 94 | -339 | 241 | -4 |
Operating cash is… surviving. But the capex + interest expense = bleeding edge biotech budget. Expect another rights issue? Or prayer?
9. Ratios – Sexy or Stressy?
| Ratio | Value | Comment |
|---|---|---|
| ROE (%) | -7% | Red. Painfully red. |
| ROCE (%) | -0.5% | Not even positive. |
| Interest Cover | ~0.3x | Danger zone. |
| OPM (%) | 4% (TTM) | Down from 17%. Margin erosion alert. |
| D/E Ratio | ~1.0x+ | Debt is no longer “mild.” |
10. P&L Breakdown – Show Me the Money
| FY | Revenue (₹Cr) | EBITDA (₹Cr) | PAT (₹Cr) |
|---|---|---|---|
| FY23 | 1,669 | 288 | 142 |
| FY24 | 1,817 | 245 | 97 |
| FY25 | 1,665 | 99 | -78 |
They didn’t just slip. They rolled down the pharma hill. Still not uninvestable — just very, very unloved right now.
11. Peer Comparison
| Company | Rev (₹Cr) | PAT (₹Cr) | P/E | ROCE (%) |
|---|---|---|---|---|
| Sun Pharma | 52,578 | 11,454 | 35.4 | 20.2 |
| Cipla | 27,548 | 5,142 | 23.4 | 22.7 |
| Zydus Life | 23,241 | 4,643 | 21.0 | 24.3 |
| Indoco | 1,671 | -116 | — | -0.5 |
Looks like the guy who forgot his lines during the biotech awards ceremony.
12. Miscellaneous – Shareholding, Promoters
| Group | Jun 2025 |
|---|---|
| Promoters | 58.90% |
| FIIs | 1.22% |
| DIIs | 18.96% |
| Public | 20.82% |
Stable hands — but still low FII interest, which is not surprising given the recent USFDA drama.
No major promoter selloff = still hopeful?
13. EduInvesting Verdict™
Indoco Remedies is not for the faint-hearted. You’ll need patience, conviction, and maybe blood pressure meds.
- Pros: Established brands, steady domestic biz, strong prescriber base, USFDA approvals still coming.
- Cons: USFDA red flags, rising debt, collapsing margins, negative earnings.
A true “pharma turnaround candidate,” but turnaround is not on Amazon Prime — it’ll take quarters. Maybe years.
Right now? Feels more like IND-OH-NO Remedies.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Indoco Remedies, Pharma, USFDA, Q1 FY26, EduInvesting Premium
