Indoco Remedies Limited (INDOCO) AI Stock Analysis

• Market Cap: ₹17.64B
• Dividend Yield: 0.08%
• Average Volume (3M): 38.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -2.81%
• EPS Growth: -444.69%
• Country: IN
• Employees: 6,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -3.20
• Shares Outstanding: 92,303,604
• 10 Day Avg. Volume: 7,145
• 30 Day Avg. Volume: 38,334
• PEG Ratio: 0.16
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -6.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -2.18
• Revenue Forecast (FY): ₹17.72B

• Rating: 49 Neutral
• Price Target: ₹190.00 ▼(-16.79% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held down primarily by weak financial performance (declining revenue, negative profitability, rising leverage, and negative free cash flow). Technicals are mixed with some near-term support but bearish longer-term trend signals. Valuation is supported by a high dividend yield, though losses (negative P/E) increase risk.

Positive Factors

Diversified revenue streams

A multi-pronged business model (formulations, APIs, and contract manufacturing) reduces dependence on a single product or market. This structural diversification supports steadier revenue opportunities across cycles and allows the firm to reallocate capacity to higher-margin or faster-growing segments over months.

In-house manufacturing & R&D

Owning manufacturing and R&D capabilities provides long-term control over quality, cost and product development timelines. It enables faster new-product launches, better margin capture versus pure-play generics suppliers, and greater resilience to contract supply disruptions.

Domestic + regulated export presence

A presence in domestic and regulated export markets broadens addressable demand and reduces single-market exposure. Access to regulated markets supports structural revenue upside from higher-value contracts and pricing stability, provided compliance and approvals are maintained.

Negative Factors

Declining revenue & profitability

A recent drop in revenue and a swing to negative net income indicate structural demand or execution issues. Sustained revenue decline erodes scale economics, pressures margins, and makes reinvestment and R&D funding harder, weakening competitiveness over a multi-month horizon.

Negative free cash flow

Negative free cash flow and worsening cash conversion reduce internal funding for working capital, capex, and product development. Over several months this forces reliance on external financing, constrains strategic investments, and increases liquidity risk if not reversed.

Rising leverage; lower ROE

Higher debt-to-equity raises financial fixed costs and reduces flexibility to pursue growth or weather shocks. Coupled with sharply lower ROE, this suggests capital is generating poor returns, increasing refinancing and solvency risk until profitability and cash generation improve.

Indoco Remedies Limited Business Overview & Revenue Model

Company Description

Indoco Remedies Limited manufactures and sells formulations and active pharmaceutical ingredients in India and internationally. The company offers respiratory products, such as Karvol Plus, Febrex Plus, and Tuspel; stomatologicals products that include Sensodent-K, Sensoform Toothpaste, Sensoform Gum Paint, Rexidin M, Rexidin SRS, RR Sensoform Dental, Snowdent, Kidodent, Rexidin Plus, and Dentogel; gastrointestinal products, such as Carmicide, Cyclopam, Cyclomeff, and Nosic; pain/analgesics products that include Lignox and T-lac; and ophthal/otologicals products, such as Renolen, Homide, Dexoren – S, Zincoren, Otorex, Mofloren-D, and Mofloren LP. It also provides vitamins/minerals/nutrients that include Methycal, Cital UTI, SM Fibro, Cal Aid, SM Fibro, MCBM DHA, and Apispur; urology products, such as Carmicide and Cital; Cloben G and Scabex for dermatology; ATM for anti-infectives; Hemsyl for blood related; MCBM 69 and D Chiro for gynecological; and Spear for anti-haemorrhoidal. In addition, the company provides analytical services, such as impurity profile, particle size analysis, heavy metal analysis, polymorphism and compatibility studies, extractables and leachables studies, lyophilization studies, reference and working standards, forced degradation studies, and chromatographic method development and validation services. Further, it offers services that include architectural design, lighting, mechanical and utility engineering, project and construction management, electrical, control system, piping, structural design, data transfer system, and process engineering. The company serves general practitioners, pediatricians, consultant physicians, dentists, cardiologists, diabetologists, endocrinologists, gynaecologists, and ophthalmologists. The company was formerly known as Indo Continental Trading Company. Indoco Remedies Limited was founded in 1945 and is based in Mumbai, India.

How the Company Makes Money

Indoco Remedies makes money primarily by selling pharmaceutical products and related services through a mix of domestic and international channels. Key revenue streams include: (1) Formulations sales: revenue from selling finished dosage medicines (e.g., tablets, capsules, injectables, ophthalmics/other dosage forms depending on the portfolio) in India through its marketing and distribution network, and overseas through exports to regulated and semi-regulated markets via partners, distributors, and tender/business-to-business routes. (2) API sales: revenue from manufacturing and selling active pharmaceutical ingredients to other drug manufacturers, supporting both internal needs and third-party supply. (3) Contract development and manufacturing / B2B supply: revenue from manufacturing formulations for other companies under contract, supplying finished products or intermediates where applicable. Earnings are influenced by product mix (chronic vs. acute therapies), geographic mix (domestic vs. export markets), regulatory approvals and compliance status of manufacturing sites, pricing/competition in generics, and the company’s ability to launch new products and scale volumes. Specific material partnerships, customer concentration, or segment-level revenue splits: null.

Indoco Remedies Limited Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined from 2024 to 2025, profitability turned negative (net income, EBIT, and EBITDA), margins deteriorated, leverage rose (higher debt-to-equity), and 2025 free cash flow was negative, indicating cash strain.

Income Statement

The company experienced a decrease in revenue from 2024 to 2025 and reported a negative net income in 2025, indicating challenges in maintaining profitability. Gross profit margin decreased significantly in 2025, and both EBIT and EBITDA margins were negative, highlighting operational struggles. Prior years showed better profitability, but the recent performance suggests a downward trajectory.

Balance Sheet

The debt-to-equity ratio increased due to rising debt levels, indicating higher financial leverage. The equity ratio remained stable, suggesting moderate balance sheet stability. However, return on equity dropped significantly due to negative net income in 2025, reflecting inefficiencies in generating returns for shareholders.

Cash Flow

The company reported negative free cash flow in 2025, indicating cash outflows exceeding inflows. Operating cash flow to net income ratio worsened, reflecting challenges in converting earnings to actual cash. The free cash flow to net income ratio was negative, further emphasizing cash management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.94B	16.65B	17.88B	16.40B	15.04B	12.19B
Gross Profit	10.58B	6.59B	6.03B	11.01B	10.24B	8.59B
EBITDA	775.50M	1.06B	2.67B	2.88B	3.25B	2.27B
Net Income	-1.10B	-737.40M	984.60M	1.42B	1.55B	930.46M
Balance Sheet
Total Assets	25.08B	24.30B	21.45B	16.58B	14.86B	13.15B
Cash, Cash Equivalents and Short-Term Investments	231.50M	153.17M	221.00M	119.25M	416.17M	115.18M
Total Debt	9.99B	9.94B	6.72B	3.33B	2.57B	2.67B
Total Liabilities	15.34B	14.12B	10.34B	6.30B	5.81B	5.46B
Stockholders Equity	9.80B	10.22B	11.10B	10.28B	9.05B	7.69B
Cash Flow
Free Cash Flow	540.40M	-3.28B	-2.71B	-284.30M	485.05M	53.73M
Operating Cash Flow	1.58B	278.90M	1.55B	1.79B	1.74B	822.22M
Investing Cash Flow	-595.60M	-3.44B	-4.38B	-2.08B	-1.21B	-666.93M
Financing Cash Flow	-976.70M	3.09B	3.19B	228.10M	-443.72M	-298.73M

Indoco Remedies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 228.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOCO, the sentiment is Negative. The current price of 228.35 is above the 20-day moving average (MA) of 198.83, above the 50-day MA of 208.94, and below the 200-day MA of 263.95, indicating a bearish trend. The MACD of -4.99 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDOCO.

Indoco Remedies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEMBICLTD	74 Outperform	₹20.40B	10.80	―	2.36%	16.53%	4.37%
SMSPHARMA	70 Outperform	₹34.96B	29.96	―	0.13%	11.91%	36.92%
ADVENZYMES	65 Neutral	₹31.46B	19.90	―	1.70%	14.11%	7.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹19.44B	144.78	―	―	9.78%	50.78%
INDOCO	49 Neutral	₹17.64B	-18.14	―	0.08%	-2.81%	-444.69%
ZOTA	41 Neutral	₹33.50B	-40.91	―	0.06%	82.58%	-63.05%

Indoco Remedies Limited Corporate Events

Indoco Remedies Releases Q3 FY26 Earnings Call Transcript

Indoco Remedies Limited has released the transcript of its Q3 FY26 earnings conference call, held on February 3, 2026, covering unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The disclosure, made to both the National Stock Exchange of India and the Bombay Stock Exchange in line with SEBI listing regulations, enhances transparency for investors by providing detailed management commentary on recent financial performance.

Indoco Remedies Posts Quarterly Loss Amid One-Time Labour Code Impact and Higher Costs

Indoco Remedies reported unaudited standalone financial results for the quarter and nine months ended 31 December 2025, showing net revenue from operations of ₹38,957 lakh for the quarter and ₹1,20,448 lakh for the nine-month period, with total income of ₹40,768 lakh for the quarter. Despite healthy top-line performance and an unmodified review opinion from its statutory auditors, the company posted a quarterly standalone loss before tax of ₹2,045 lakh and a net loss of ₹2,000 lakh, driven in part by higher finance costs, operating expenses and exceptional items. Exceptional items included income from licensing its trademarks as well as a loss on sale-and-leaseback of non-current assets and a one-time charge of ₹694 lakh arising from increased employee benefit liabilities due to implementation of India’s new labour codes, which raised gratuity and leave liabilities through a revised definition of wages. The board approved these results at its meeting on 3 February 2026, and management highlighted that the impact of labour law changes is non-recurring, with the company continuing to monitor regulatory developments, a factor that may influence future profitability and cost structures.

Indoco Remedies Schedules Earnings Call for Q3 and Nine-Month FY26 Results

Indoco Remedies Limited has announced that it will host an earnings conference call to discuss its unaudited financial results for the quarter and nine months ended 31 December 2025. The call, organized in association with Nirmal Bang Institutional Equities, is scheduled for Tuesday, 3 February 2026 at 3:30 p.m. IST and will feature key members of the company’s top management, including the managing director, joint managing director and chief financial officer, underscoring the importance of the interaction for investors and analysts seeking clarity on Indoco’s financial performance and business outlook.