India's IPCA Labs' Q1 miss due to unit's low gross margin, soft institutional sales, Nomura says

Ipca Laboratories

12/08/2025 06:27

** Nomura says IPCA Laboratories' IPCA.NS weaker-than-expected Q1 performance can be largely attributed to subsidiary Unichem Laboratories' UNLB.NS low gross margin, low domestic formulation growth, soft institutional sales

** Co holds 52.67% stake in UNLB, which was acquired in 2023

** IPCA's Q1 sales, profit, EBITDA below Nomura's estimates; but consol profit, revenue up ~21%, ~10% y/y, respectively

** API segment revenue up 13% y/y, led by 28% y/y growth in exports; domestic API sales down 18% y/y

** IPCA up 1.4% on the day, trims YTD losses to ~20%

 (Reporting by Vijay Malkar)

 ((VijayDattaram.Malkar@thomsonreuters.com;))