IOL Chemicals & Pharmaceuticals Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript IOL Chemicals & Pharmaceuticals Ltd filed with BSE on 28 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
IOL Chemicals and Pharmaceuticals reported its highest-ever quarterly revenue in Q4 FY26 at Rs 619 crore, up 17.4% year-on-year, with EBITDA growing nearly 40% to Rs 94 crore and margin improving to 15.2%. For the full year, revenue rose 11.5% to Rs 2,319 crore, EBITDA increased around 29% to Rs 290 crore, and profit after tax grew about 36% to Rs 138 crore. Management attributed the improvement to operational efficiencies, improved product mix, higher capacity utilisation across ibuprofen and non-ibuprofen APIs, and price increases in the chemical business.
Numbers mentioned
Revenue from operations: INR619 crores (Q4 FY26)
p. 4
“the company reported a strong top-line performance with revenue from operations of INR619 crores as compared to INR528 crores in the corresponding quarter last year, reflecting a year-on-year growth of around 17.4%.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
Revenue from operations: INR2,319 crores (FY26)
p. 4
“For the full year financial year 2026, revenue from operations stood at INR2,319 crores, representing a growth of 11.5 percentage year-on-year.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
EBITDA: INR94 crores (Q4 FY26)
p. 4
“EBITDA for the quarter stood at INR94 crores as against INR68 crores in Q4 financial year 2025, registering a growth of nearly 40%, while EBITDA margin improved by 251 basis points to 15.2%.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
EBITDA: INR290 crore (FY26)
p. 4
“For the full year of financial year 2026, EBITDA increased by around 29% to INR290 crore, with margin improving to 12.4% from 10.7% in the previous year.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
PAT: INR53 crores (Q4 FY26)
p. 4
“profit after tax for Q4 stood at around INR53 crores as compared to INR32 crores in corresponding quarter of the last year, witnessing a growth of 68 percentage, with PAT margins improving by 262 basis points to 8.6 percentage.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
PAT: INR138 crore (FY26)
p. 4
“For the full year financial year 2026, PAT increased by around 36% to INR138 crore.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
Capex: INR160 crores (FY26)
p. 4
“During financial year 2026, the company incurred capex of around INR160 crores towards capacity expansion, operational improvements and infra enhancement, and were funded entirely through internal accruals, reflecting disciplined capital allocation.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
Inventory: INR371 crores
p. 18
“Inventory of INR371 crores.”
Rakesh Mahajan, page 18 of the filed PDF · View the filing
Ibu vs non-ibu revenue split: 62% ibu, 38% non-ibu (Q4 FY26)
p. 10
“this is around 62% for this quarter contributed through ibu, and remaining around 38% from non-ibu.”
Abhay Raj Singh, page 10 of the filed PDF · View the filing
Ethyl acetate capacity: 1,10,000 to 1,20,000 tons
p. 8
“In ethyl acetate, we have increased our capacity from 1,10,000 to 1,20,000 tons or so.”
Rakesh Mahajan, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — mid-teens to high-teens · medium term
stated as an aspiration by Pradeep Khanna
p. 4
“We remain confident of delivering midteens to high-teens revenue growth over the medium term, along with gradual improvement in EBITDA margins from the current trajectory, supported by operating leverage and efficiency enhancement.”
Pradeep Khanna, page 4 of the filed PDF · View the filing
Revenue growth — 15% growth · FY27
stated firmly by Pradeep Khanna
p. 6
“We expect 15% growth in top line. It may be more or 1%, 2% more or less. And for EBITDA margin, we expect 14%.”
Pradeep Khanna, page 6 of the filed PDF · View the filing
EBITDA margin — 14% to 14.5% · FY27
stated firmly by Abhay Raj Singh
p. 15
“Overall, blended margin for this year is 12.4%. And what we expect for the next year is around 14% to 14.5%.”
Abhay Raj Singh, page 15 of the filed PDF · View the filing
Greenfield project capex — INR200 crores to INR250 crores annually · next four to five years
stated firmly by Abhay Raj Singh
p. 5
“we will be doing around INR200 crores to INR250 crores because the development will be in a gradual and phased manner. The whole investment will be completed in the next four to five years.”
Abhay Raj Singh, page 5 of the filed PDF · View the filing
Total greenfield investment — INR1,200 crore to INR1,400 crore
stated as an aspiration by Abhay Raj Singh
p. 5
“Broad mind set, yes. Broad mind set is around INR1,200 crores to INR1,400 crore.”
Abhay Raj Singh, page 5 of the filed PDF · View the filing
Paracetamol capacity utilisation — 70% to 75% · FY2027
stated firmly by Abhay Raj Singh
p. 13
“We are hopeful that we will be reaching to around 70% to 75% capacity utilization in FY 2027 itself. And I think in FY 2028, we will be having the full capacity utilization by that time.”
Abhay Raj Singh, page 13 of the filed PDF · View the filing
Non-ibu export share of pharma — around 25% · FY2027
stated as an aspiration by Abhay Raj Singh
p. 10
“So we are expecting that we should achieve around 25% in this FY 2027.”
Abhay Raj Singh, page 10 of the filed PDF · View the filing
Maximum revenue potential at full capacity — INR3,200 crores to INR3,300 crores
stated as an aspiration by Abhay Raj Singh
p. 14
“So I think having -- considering the -- if we achieve 100% for all, this will be around INR3,200 crores to INR3,300 crores.”
Abhay Raj Singh, page 14 of the filed PDF · View the filing
Ibuprofen demand growth — 3% to 4% annually
stated as an aspiration by Rakesh Mahajan
p. 16
“And the annual growth rate of 3% to 4% every year for ibuprofen demand also.”
Rakesh Mahajan, page 16 of the filed PDF · View the filing
Employee benefit expense as % of turnover — 9% to 10%
stated firmly by Abhay Raj Singh
p. 19
“Yeah. 9% to 10%.”
Abhay Raj Singh, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the improvement was mainly from operational efficiencies and product mix, not inventory gains, and expected it to continue for a couple of quarters.
Answered by Abhay Raj Singh
Asked by Jainam Ghelani: Whether the improved gross margins this quarter are sustainable or a one-off from price increases and inventory gains.
p. 5
“This is mainly because of the operational efficiencies from our side and good traction in the nonIbu.”
Abhay Raj Singh, page 5 of the filed PDF · View the filing
Existing products including ibuprofen, metformin, clopidogrel and fenofibrate ran at 85-95% utilisation, with paracetamol at 55% of its enhanced capacity.
Answered by Rakesh Mahajan
Asked by Maulik Varia: What drove volume growth across products and capacity utilisation levels.
p. 6
“they are running almost at 85% to 95% capacity utilization.”
Rakesh Mahajan, page 6 of the filed PDF · View the filing
Management said IOL's ibuprofen remains one of its best products with high capacity utilisation and no concerns for the next few quarters.
Answered by Abhay Raj Singh
Asked by Sachin Kasera: Whether Ibuprofen margins are under pressure like a peer that is exiting the business.
p. 8
“this is one of the best product, and that is witnessed by the capacity utilizations we are doing now and for last few quarters.”
Abhay Raj Singh, page 8 of the filed PDF · View the filing
Management confirmed spreads had improved and current margins in April/May were better than the March quarter.
Answered by Rakesh Mahajan
Asked by Sachin Kasera: Whether ethyl acetate spreads have improved and are sustainable.
p. 8
“It is absolutely correct.”
Rakesh Mahajan, page 8 of the filed PDF · View the filing
Management said no buyback discussion has occurred at the Board level, with funds prioritised for growth projects.
Answered by Abhay Raj Singh
Asked by Sheikh Mohammad: Whether there is a buyback under consideration.
p. 18
“As of now, no, because as of now, this has not been discussed in the Board.”
Abhay Raj Singh, page 18 of the filed PDF · View the filing
Management said there was some impact on raw material and logistics costs but no major or direct disruption.
Answered by Abhay Raj Singh
Asked by Sheikh Mohammad: Whether raw material procurement was affected by the West Asia conflict and crude pricing.
p. 18
“I think not much issue, but the prices across the board of the -- all the raw materials has gone up to the extent that crude is having the impact.”
Abhay Raj Singh, page 18 of the filed PDF · View the filing
Management declined to comment on the potential acquisition.
Answered by Abhay Raj Singh
Asked by Kenil: Whether IOL is interested in acquiring a competitor's ibuprofen assets being sold.
p. 15
“I think we cannot comment on this sort of a question because of the regulatory as well as we are not sure about it or anything.”
Abhay Raj Singh, page 15 of the filed PDF · View the filing
Risks flagged
Raw material and logistics price increases due to global disturbances including crude oil and West Asia conflict.
p. 18
“Logistics has also gone up and is going up. And some delays in the logistics across the globe.”
Abhay Raj Singh, page 18 of the filed PDF · View the filing
Brief raw material supply disruption from government refineries in early March.
p. 10
“In the first week of March only, we have faced some crude-based chemical and gas, which are provided by oil marketing company, the government refineries.”
Rakesh Mahajan, page 10 of the filed PDF · View the filing
Difficulty predicting quarter-to-quarter performance due to global dynamism.
p. 7
“quarter-to-quarter basis predictions is very complicated and is very risky to say about that considering so much of dynamism globally happening.”
Abhay Raj Singh, page 7 of the filed PDF · View the filing
Prior overstocking of ibuprofen in the market that weakened demand.
p. 7
“the demand was lower due to overstocking of product ibuprofen in 2023-2024 -- year 2023 and 2024.”
Rakesh Mahajan, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.