Corporate Development     

Published: September 30, 2026
Updated: September 30, 2026

IOL Chemicals and Pharmaceuticals

Upsizing to meet global Ibuprofen demand

Based at Ludhiana, NSE-BSE listed IOL Chemicals and Pharmaceuticals has undertaken key business and capacity expansion initiatives aimed at strengthening its manufacturing capabilities, broadening its product and service portfolio, and supporting its long-term growth strategy.

The company is setting up a fully backward-integrated, state-of-the-art manufacturing unit for Ibuprofen at its existing site at Barnala, Punjab, with an installed manufacturing capacity of 6,000 mtpa, which will enhance the company’s existing Ibuprofen manufacturing capacity from 12,000 mtpa to 18,000 mtpa. The estimated project cost is Rs 350 crore, which is proposed to be funded through internal accruals.

The current capacity utilisation is at 95%. However, the expansion is being undertaken to address the growing global demand for Ibuprofen, reinforce the company’s position as a leading global manufacturer, and support long-term growth in the Ibuprofen business. During FY26, the company achieved revenues of Rs 2,319 crore, EBITDA of Rs 290.4 crore and PAT of Rs 137.7 crore. EBITDA and NPM were 12.4% and 5.9% respectively.

CONTRACT BIZ

The company has installed a new pharmaceutical formulation manufacturing facility at its existing site at Barnala, diversifying as a Contract Development and Manufacturing Organisation (CDMO) for pharmaceutical formulations. The facility has an installed capacity of approximately 1,500 million tablets per annum or an equivalent volume of direct compressible grade, and has been established at an estimated project cost of approximately Rs 110 crore, funded entirely through internal accruals.

The new line of business has been established primarily to cater to the evolving and long-term contract manufacturing requirements of IOL’s anchor customers in the European region, leveraging its existing manufacturing capabilities, quality standards, regulatory compliance and technical expertise. This represents a customer-led and complementary extension of its existing API business.

The facility has successfully completed the requisite regulatory inspection and received the certificate of GMP compliance of a manufacturer from the National Centre for Public Health and Pharmacy, Directorate for Drug Inspection, Hungary. The facility is expected to be commercialised during Q3FY27. The initiative is expected to strengthen long-term customer relationships and create additional opportunities across the pharmaceutical value chain.

‘SPECIAL’ CLIENT

IOL is establishing a dedicated manufacturing facility for the manufacture of specialty chemicals for a leading global chemical company under a long-term tolling arrangement. The project entails an estimated capital expenditure of approximately Rs 35 crore, to be funded through internal accruals. The facility will be dedicated to fulfilling the customer’s long-term requirements, and is expected to be commercialised during Q3FY27.

In Q1 of FY27, the company fared impressively, with revenues of Rs 756.3 crore (up 37.1%), EBITDA of Rs 111.7 crore (up 60.7%), and PAT of Rs 64.5 crore (up 89.9%). On a yoy basis, EBITDA and net profit margins have improved to 14.6% and 8.4% respectively.

Commenting on the performance, Vikas Gupta, Joint Managing Director, said, “We have commenced FY27 with a record quarterly performance, delivering our highest-ever revenue. Our pharmaceuticals business remained a key growth driver, with revenue increasing 43% yoy and EBIT growing 72% yoy. Non-Ibuprofen products contributed 43% of pharma revenue in Q1FY27, up from 36% a year ago, led by healthy demand across paracetamol, pantoprazole, metformin, fenofibrate and other APIs. Paracetamol capacity utilisation also improved to 65% from 60% in the previous quarter. The chemicals business delivered 29% yoy revenue growth and 193% yoy EBIT growth, supported by improved operational efficiencies, disciplined and efficient raw-material procurement, and better realisations.”

EXPORTS CLIMB

On the export front, he said, “Our overall export performance continued to strengthen, with exports contributing 28.5% of revenue compared with 24.4% in Q1FY26, reflecting growing traction across international markets. We are also pleased to share that our Clopidogrel API product has received NMPA approval in China, in addition to our valid CEP, further expanding our access to the Chinese pharmaceutical market. Going forward, we remain focused on scaling our portfolio, improving product mix, enhancing capacity utilization, and expanding our presence across value-added APIs and speciality chemicals. We remain confident of building on this momentum and delivering sustainable long-term growth.”

At the current market price of Rs 203, the company’s market capitalisation is Rs 5,963 crore, with a yearly high-low price at Rs 219 and Rs 67. Equity capital is Rs 58.71 crore, book value is Rs 61.30 (face value Rs 2), and the promoter group holds a 62.28% stake.

FINANCIAL HIGHLIGHTS: Q1 (Rs Cr)

Revenue split for Q1FY27: exports 29% and domestic 71% of revenue (geographical break-up).