IOL Chemicals & Pharmaceuticals Ltd., headquartered in Ludhiana, has reported a strong financial performance in Q4 FY25, showcasing its resilience and strategic focus despite prevailing headwinds in the global pharmaceutical and specialty chemicals industry.

For the quarter ending March 31, 2025, IOLCP reported a standalone revenue from operations of INR 527.8 crore, reflecting a 4.7% year-on-year growth compared to INR 503.9 crore in the same quarter last year. The company posted an EBITDA of INR 67.5 crore, a 17.1% increase, and a Profit After Tax (PAT) of INR 31.6 crore, marking a 12.2% year-on-year growth. The EBITDA margin rose by 141 basis points to 12.7%, and PAT margin increased by 43 basis points to 5.9%.

Over the full fiscal year (FY25), however, IOLCP's total revenue was INR 2,079.2 crore, showing a slight decline compared to INR 2,132.8 crore in FY24. EBITDA for the year stood at INR 224.6 crore (down from INR 261.6 crore), while PAT was INR 101.0 crore, as compared to INR 135.4 crore last year.

Gross margins also saw a decline from 35.4% in FY24 to 33.8% in FY25, attributed to pricing pressure in key markets and rising input costs. However, operational efficiencies and a stable demand environment helped mitigate deeper margin erosion.

Strategic Capacity Expansions

A major operational milestone for the quarter was the successful commissioning of the fully backward-integrated Paracetamol manufacturing unit at Barnala, with an annual capacity of 10,800 MTPA. This tripled the company’s Paracetamol production capacity, thereby reducing dependency on Ibuprofen and strengthening the company's non-Ibuprofen API portfolio. The unit was set up with a capital investment of INR 155.51 crore, fully funded through internal accruals.

Additionally, Clopidogrel Bisulphate production capacity was increased from 180 MTPA to 240 MTPA at Unit-5, with an investment of INR 7.87 crore, also internally funded.

Global Regulatory Approvals

The company achieved regulatory breakthroughs during FY25, including:

• EDQM (Europe) CEP certifications for Mesalazine and Quetiapine Fumarate, opening up lucrative CEP-compliant markets.

• Approval from China’s NMPA for the export of Ibuprofen, marking IOL’s entry into one of the world’s largest pharmaceutical markets.

These milestones underscore IOLCP's continued internationalization strategy and its commitment to quality, compliance, and innovation.

Market and Product Dynamics

IOLCP remains the world’s largest producer of Ibuprofen, holding a 30% global market share. Despite global pricing pressures and competition, the Ibuprofen segment showed renewed traction during Q4, driven by stable demand and improved production economics.

The pharmaceutical segment generated INR 322 crore in Q4 FY25, slightly down from INR 295 crore in Q4 FY24, while the chemicals segment remained stable, with revenue of INR 205 crore.

A significant contributor to performance has been the company’s backward integration strategy, which helps in cost control, operational resilience, and consistent product quality.

Land Acquisition for Future Growth

In a bold step towards long-term expansion, IOLCP acquired 101 acres of land along the Chandigarh-Bathinda Highway. This land is expected to support future production facilities, with regulatory and environmental clearances already underway.

Management Commentary

Mr. Vikas Gupta, Joint Managing Director of IOLCP, stated:

“In Q4FY25, we delivered sustainable performance, with the Ibuprofen segment showing improved traction despite intense competition and continued pricing pressure. A key highlight was the successful commissioning of our fully backward-integrated Paracetamol production unit. FY25 was marked by strategic consolidation and investments focused on capacity enhancement, cost control, and regulatory expansion.”

He also emphasized that API pricing across therapeutic categories remained stable, and the company is optimistic about operational excellence and global market penetration driving future growth.

Financial Overview (Standalone):

Company Outlook

With a strong portfolio, backward integration, and growing international regulatory approvals, IOLCP is positioned for sustained growth. The company plans to diversify further into high-demand APIs, optimize costs through internal sourcing and technology, and maintain leadership in key therapeutic markets.

It remains focused on enhancing operational leverage, compliance standards, and value creation for stakeholders while navigating global uncertainties

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