Revenue and Profit Trends
Indoco Remedies’ net sales exhibited a consistent upward trend from ₹968.45 crores in March 2019 to a peak of ₹1,817.29 crores in March 2024. However, the fiscal year ending March 2025 saw a decline to ₹1,664.92 crores, indicating a contraction of approximately 8.4% from the previous year. This dip interrupts a five-year growth streak and may reflect market challenges or operational headwinds.
Operating profit before depreciation and interest (PBDIT) also followed a similar pattern, rising from ₹76.66 crores in 2019 to a high of ₹329.67 crores in 2022, before falling sharply to ₹104.71 crores in 2025. The operating profit margin correspondingly dropped from 21.77% in 2022 to just 6.05% in 2025, signalling margin pressures.
Profit after tax (PAT) mirrored this volatility, with the company posting a loss of ₹77.95 crores in 2025 after several years of profitability. The PAT margin swung from a positive 10.29% in 2022 to a negative 4.75% in 2025. Earnings per share (EPS) followed suit, declining from a peak of ₹16.80 in 2022 to a loss of ₹7.99 in 2025.
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Cost Structure and Expenses
The company’s raw material costs increased from ₹240.17 crores in 2019 to ₹396.27 crores in 2025, reflecting rising input costs and scale. Employee costs also rose steadily, reaching ₹394.05 crores in 2025 from ₹231.66 crores in 2019, indicating investment in human resources. Selling and distribution expenses climbed from ₹51.51 crores in 2019 to ₹76.01 crores in 2025, consistent with expanded market activities.
Other expenses showed a significant increase, from ₹288.37 crores in 2019 to ₹597.42 crores in 2025, which may have contributed to margin compression. Despite these rising costs, total expenditure excluding depreciation remained relatively stable between ₹1,565 crores and ₹1,572 crores in the last two years, suggesting some cost control efforts.
Balance Sheet and Debt Position
Indoco Remedies’ total assets grew substantially from ₹1,235.69 crores in 2020 to ₹2,429.91 crores in 2025, driven by investments in fixed assets and capital work in progress. The net block of assets nearly doubled over five years, reaching ₹981.97 crores in 2025. Capital work in progress surged to ₹276.12 crores in 2025, indicating ongoing expansion or modernisation projects.
However, the company’s debt levels have increased markedly. Total debt rose from ₹202.91 crores in 2020 to ₹895.21 crores in 2025, with long-term borrowings accounting for the majority. This rise in leverage may have contributed to the sharp increase in interest expenses, which more than doubled from ₹38.02 crores in 2024 to ₹66.23 crores in 2025.
Shareholders’ funds increased steadily from ₹679.57 crores in 2020 to ₹1,022 crores in 2025, reflecting retained earnings and capital infusion. Book value per share also improved from ₹73.75 in 2020 to ₹110.79 in 2025, despite the recent profit setback.
Cash Flow Analysis
Cash flow from operating activities has generally been positive, rising from ₹122 crores in 2020 to ₹94 crores in 2025, though it declined in the latest year. Investing activities consistently showed cash outflows, peaking at ₹339 crores in 2025, aligned with the company’s capital expenditure plans. Financing activities provided significant inflows in recent years, with ₹241 crores raised in 2025 to support growth and debt servicing.
Despite these efforts, the net cash position slightly declined in 2025, with closing cash and cash equivalents at ₹12 crores, down from ₹14 crores in 2024. This indicates tighter liquidity conditions that the company will need to manage carefully going forward.
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Summary and Outlook
Indoco Remedies’ historical performance reveals a company that experienced robust growth in sales and profitability through to 2022, followed by a challenging period in 2025 marked by declining revenues and losses. The sharp increase in debt and interest costs has weighed heavily on profitability, while rising expenses have compressed margins. Nonetheless, the company’s asset base and shareholder equity have expanded, reflecting ongoing investments and retained earnings accumulation.
Investors should weigh the recent financial setbacks against the company’s long-term growth initiatives and capital expenditure plans. The ability to manage debt levels and restore profitability will be critical for Indoco Remedies to regain its upward trajectory in the competitive pharmaceutical sector.
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