This article first appeared on GuruFocus .
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Revenue:INR9,421 million, 30.8% year-on-year growth, 17.1% quarter-on-quarter growth.
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Revenue Growth (USD terms):24.4% year-on-year, 15.1% quarter-on-quarter.
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Adjusted EBITDA:INR1,747 million, 15.7% year-on-year increase, 19.6% quarter-on-quarter increase.
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Adjusted EBITDA Margin:18.5%, 30 bps improvement quarter-on-quarter.
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PAT (Profit After Tax):INR1,026 million, 0.5% sequential increase, 6.5% decline year-on-year.
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PAT Margin:10.9%, adjusted for one-time expenses would be 11.7%.
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Top Five Customers Growth:3.1% quarter-on-quarter.
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$1 Million-Plus Customers:Increased by 12, now totaling 52.
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Active Customers:Increased by 10, now totaling 86.
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Revenue Per Employee:Exceeded USD70,000 annually.
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Geographic Revenue Contribution:North America 71.8%, Europe 25.5%.
Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Indegene Ltd ( NSE:INDGN ) reported a robust revenue growth of 30.8% year-on-year and 17.1% quarter-on-quarter.
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The company achieved an adjusted EBITDA margin of 18.5%, marking a 30 basis points improvement quarter-on-quarter.
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Indegene Ltd ( NSE:INDGN ) secured seven large deals exceeding $1 million ACV each, showcasing strong new business generation.
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The company has successfully integrated BioPharm, with positive client responses and no disruption in active engagements.
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Indegene Ltd ( NSE:INDGN ) is leveraging AI and Gen AI to enhance productivity and expand its service offerings, positioning itself as a strategic partner in the life sciences industry.
Negative Points
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Despite revenue growth, the PAT for the quarter declined by 6.5% year-on-year, with a PAT margin of 10.9%.
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The company faced elevated costs related to upfront investments and go-live costs in large deals, impacting short-term profitability.
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Amortization costs increased significantly, impacting the PAT margin and expected to remain elevated for the next three quarters.
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There is a potential risk of drag on growth from the brand businesses, although the company is optimistic about future prospects.
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The integration of BioPharm, while progressing well, is still in early stages, and its long-term impact on growth remains to be fully realized.
Q & A Highlights
Q: We've added about seven to eight clients in the $1 million range this quarter. What contributed to this growth, and what momentum can we expect going forward? A: Manish Gupta, CEO: Our teams are well-positioned, and after some industry consolidation, clients are actively engaging again. The decision-making cycles, especially in smaller companies, are now more agile. Suhas Prabhu, CFO: Our strategy has always been to expand from initial projects to larger annuity businesses, which is reflected in the increase in our $1 million-plus customers.
Q: How is the BioPharm acquisition performing, given its previous tepid growth? A: Manish Gupta, CEO: It's early days, but customer conversations have been positive, and the pipeline is building up. Customers are excited about the joint proposition with Indegene. Suhas Prabhu, CFO: BioPharm generated $10.3 million in revenue this quarter, and we've already won deals integrating BioPharm capabilities, indicating positive momentum.
Q: Are we looking at stronger market growth, given the 18%-plus growth this quarter, excluding BioPharm? A: Suhas Prabhu, CFO: While we refrain from giving future guidance, our quarter-on-quarter performance has been strong, and the deal pipeline is robust, suggesting steady growth.
Q: With the brand business growing more than the enterprise business, is there a risk of drag on growth from these segments? A: Manish Gupta, CEO: We don't see a risk of drag. The enterprise part of the business will continue to scale, and with Gen AI and centralization trends, we see opportunities to move upstream and downstream, benefiting from this trend.
Q: What volume increase are we witnessing from existing top accounts and new logos? Also, what are the current pricing trends? A: Suhas Prabhu, CFO: Renewals have been stable, and we've converted short-term engagements into annual annuity businesses, increasing volume. On pricing, cost of living adjustments have been accepted by more customers, and we've proactively offered benefits from Gen AI-led productivity gains.
Q: How is Indegene positioning its platform and service offerings to deepen client relationships in the digital and AI space? A: Manish Gupta, CEO: We integrate deep medical expertise with technology, positioning ourselves as a next-generation company enabling pharma companies to take drugs from lab to patient. We focus on sales, marketing, patient engagement, regulatory services, and medical affairs, using Gen AI to transform these areas.
Q: How will AI impact Indegene's growth rate compared to the rest of the industry? A: Manish Gupta, CEO: AI is a positive tailwind for us. It enables more centralization and allows us to take a larger market share by driving more processes upstream and downstream. This applies to sales, marketing, regulatory, safety, and clinical trials.
Q: Can you explain the nature of the 1.5% EBITDA margin compression due to investments? A: Manish Gupta, CEO: We've hired senior talent in go-to-market teams and invested in Gen AI licensing, cloud infrastructure, and security. Suhas Prabhu, CFO: These investments are already reflected in our financials, impacting Q3 but not expected to increase further.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
