Ipca Laboratories shares jump 12% to hit record high on strong Q1 show; check revised target prices
Select brokerages retained their bullish stance on the stock and raised their target prices following the earnings.
- Aug 17, 2026,
- Updated Aug 17, 2026 10:01 AM IST
Shares of Ipca Laboratories Ltd surged 12.19 per cent in Monday's trade, hitting an all-time high of Rs 1,945 after the pharmaceutical company reported strong financial results for the June quarter of FY27. Select brokerages retained their bullish stance on the stock and raised their target prices following the earnings.
JM Financial said Ipca reported strong Q1 FY27 numbers, with revenue, EBITDA and PAT growing 21 per cent, 61 per cent and 72 per cent year-on-year (YoY), respectively. The figures were ahead of Street estimates by 8 per cent, 24 per cent and 27 per cent, respectively.
EBITDA margin stood at 24 per cent, expanding by around 600 basis points (bps) YoY. The India business grew 13 per cent YoY, while the institutional export business doubled YoY to Rs 120 crore. However, JM Financial noted that around Rs 40 crore of the export growth represented shipments delayed from March into April, and the company does not expect this timing benefit to recur.
"Branded formulations performed well with 16 per cent YoY growth," the brokerage said.
"However, generics remained relatively weaker, at 8 per cent YoY growth. API business was up 33 per cent/20 per cent in exports/domestic. The company upgraded FY27 revenue growth guidance to 14–16 per cent from 12–13 per cent and raised consolidated EBITDA margin guidance to ~23 per cent from 22 per cent. US growth is expected at 15–17 per cent, with 7–8 launches in total by Unichem and Ipca. Unichem's existing guidance of 10 per cent growth and 13 per cent EBITDA margin is unchanged," it also said. Unichem is a subsidiary of Ipca.
JM Financial maintained its 'Buy' rating on the stock and raised its 12-month target price to Rs 2,118 from Rs 1,887 earlier.
Nuvama Institutional Equities also retained its 'Buy' call and raised the target price to Rs 2,025 from Rs 1,720 previously.
"Mid-term margin is set to improve to 25–26 per cent. The margins are expected to be driven by mix change, operating leverage and to an extent due to backward integration. Additionally, ~Rs 900 crore of Ipca's capacity would see start of production/trial batches in CY26, indicating future growth potential," Nuvama said.
Motilal Oswal Financial Services Ltd (MOFSL) retained its 'Buy' rating with a target price of Rs 2,060.
"After three years of robust earnings growth over FY24-26, we expect the momentum to sustain over FY26-28, led by industry-beating growth in DF, increased offtake in exports, and favourable currency movements," MOFSL stated.
Shares of Ipca Laboratories Ltd surged 12.19 per cent in Monday's trade, hitting an all-time high of Rs 1,945 after the pharmaceutical company reported strong financial results for the June quarter of FY27. Select brokerages retained their bullish stance on the stock and raised their target prices following the earnings.
JM Financial said Ipca reported strong Q1 FY27 numbers, with revenue, EBITDA and PAT growing 21 per cent, 61 per cent and 72 per cent year-on-year (YoY), respectively. The figures were ahead of Street estimates by 8 per cent, 24 per cent and 27 per cent, respectively.
EBITDA margin stood at 24 per cent, expanding by around 600 basis points (bps) YoY. The India business grew 13 per cent YoY, while the institutional export business doubled YoY to Rs 120 crore. However, JM Financial noted that around Rs 40 crore of the export growth represented shipments delayed from March into April, and the company does not expect this timing benefit to recur.
"Branded formulations performed well with 16 per cent YoY growth," the brokerage said.
"However, generics remained relatively weaker, at 8 per cent YoY growth. API business was up 33 per cent/20 per cent in exports/domestic. The company upgraded FY27 revenue growth guidance to 14–16 per cent from 12–13 per cent and raised consolidated EBITDA margin guidance to ~23 per cent from 22 per cent. US growth is expected at 15–17 per cent, with 7–8 launches in total by Unichem and Ipca. Unichem's existing guidance of 10 per cent growth and 13 per cent EBITDA margin is unchanged," it also said. Unichem is a subsidiary of Ipca.
JM Financial maintained its 'Buy' rating on the stock and raised its 12-month target price to Rs 2,118 from Rs 1,887 earlier.
Nuvama Institutional Equities also retained its 'Buy' call and raised the target price to Rs 2,025 from Rs 1,720 previously.
"Mid-term margin is set to improve to 25–26 per cent. The margins are expected to be driven by mix change, operating leverage and to an extent due to backward integration. Additionally, ~Rs 900 crore of Ipca's capacity would see start of production/trial batches in CY26, indicating future growth potential," Nuvama said.
Motilal Oswal Financial Services Ltd (MOFSL) retained its 'Buy' rating with a target price of Rs 2,060.
"After three years of robust earnings growth over FY24-26, we expect the momentum to sustain over FY26-28, led by industry-beating growth in DF, increased offtake in exports, and favourable currency movements," MOFSL stated.