Indoco Remedies Q2 Review — Dolat Capital Hikes Target Price Maintaining ‘Sell’, Sees 15% Downside

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Dolat Capital Report

Indoco Remedies Ltd.’s Q2 FY26 earnings came above estimates. Ebitda margin was above our estimates mainly due to better-than-expected gross margin and lower-than-expected other expenses.

Goa plant II remediation is complete, and the company has invited the U.S. Food and Drug Administration for inspection. Any incremental sales from the lines that were restarted will reflect gradually.

We downgrade our FY26E/FY27E Ebitda estimates by 34.2%/9.6%, assuming higher other expenses.

We roll over to FY28E and maintain ‘Sell’ rating with a revised target price of Rs 224 at 16x FY28E P/E.

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