IGIL Q4 FY26 Results Analysis: PAT Jumps 27.6%, Domestic Revenue Surges 30.2%

IGIL's Q4 FY26 numbers came in strong, with revenue of Rs. 3,685.62 Cr (+20.90% YoY) and PAT growth of +27.60% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

IGIL delivered strong Q4 FY26 with revenue growth of 20.9% YoY and PAT growth of 27.6% YoY, exceeding management's FY25 guidance targets of 15% revenue and 20% EBITDA growth. EBITDA margin recovered to 64% QoQ, and PAT margin at 48.7% exceeded the 40-45% guidance range. Domestic market strength (30.2% YoY) offset international weakness, with LGD certifications maintaining 65% global market share. The company shows strong operating cash conversion and improved balance sheet leverage.

Key Investment Insights

Key Positives

• Revenue grew 20.9% YoY to Rs.3,685.62 Mn, beating management's 15% FY25 guidance
• PAT grew 27.6% YoY to Rs.1,795.96 Mn; EPS was Rs.4.16
• EBITDA margin recovered to 64.0% in Q4, up 410 bps QoQ from Q3
• India revenue grew 30.2% YoY, driving overall growth; domestic mix increased to 64.5%
• PAT margin of 48.7% exceeded management's 40-45% guidance range
• Operating cash flow strong at Rs.6,241 Mn (0.88x conversion)
• Debt/Equity improved significantly from 0.42x to 0.25x
• LGD segment at 52% of volumes with 65% global market share

Risk Factors

• International revenue grew only 7.0% YoY vs India 30.2%, indicating relative weakness in European and US markets
• Volume peaked at 3.45 Mn in Q3 and declined to 3.21 Mn in Q4, potential volume normalization
• Subsidiaries contribute 19.6% of revenue but only 3.0% of PAT, indicating margin dilution from international operations
• Depreciation grew 29.8% YoY, reflecting recent capacity expansion and acquisitions