3 weeks ago
Indegene defies IT slowdown with 40% growth, pharma focus
Indegene is a company in India that helps medicine makers.
When a new medicine is found, companies must write thousands of pages of papers to prove it is safe.
They also need to teach doctors about it and watch out for any problems.
Indegene does this work using computers and special experts like doctors and scientists.
Right now, most computer companies in India are finding it hard to grow.
But Indegene is growing very fast, by about 40% in a year.
It earns more money for each worker than most other computer companies.
The company also uses clever AI tools, which are like robot helpers, to do the work faster.
Some people who owned parts of the company sold their shares, which made the stock price stay flat.
Everyone is now waiting to see if Indegene can keep growing while making more profit.
Indegene, a listed mid-cap Indian IT company focused exclusively on pharmaceutical and medical device companies, has been delivering 30-40% revenue growth while the wider IT sector struggles.
Revenue from operations rose 23.6% year-on-year to ₹3,511 crore in FY26, and Q1 FY27 revenue grew 39.7% to ₹1,063 crore.
Revenue per employee has climbed to nearly $75,000, about 50% higher than the $40,000-50,000 typical of large Indian IT services firms.
EBITDA margins fell from 20.7% in FY24 to 16.9% in Q1 FY27 due to investments in AI platforms and the integration of acquisitions including BioPharm, WARN and Cake Communications.
Private equity investor Carlyle Group sold its remaining roughly 10% stake in a ₹1,447-crore block deal in June 2025, contributing to the stock's sideways performance since its May 2024 IPO.
- Who
- Indegene, a listed mid-cap Indian IT company; private equity investors Carlyle Group and Brighton Park Capital; the world's top 20 biopharma companies as clients; and sector leaders Infosys and TCS used as comparisons.
- What
- Indegene reported 30-40% revenue growth and nearly $75,000 revenue per employee by specialising in technology-enabled commercialisation and regulatory services for pharma and medical device firms, while its EBITDA margins declined.
- Where
- India — Indegene is a listed Indian company serving global pharmaceutical and medical device companies worldwide.
- When
- FY26 full-year results and Q1 FY27 quarterly results; the stock has traded mostly sideways since the company's May 2024 IPO.
- Why
- Growth was driven by deeper engagements with existing clients, contributions from recent acquisitions, and sustained demand for AI-enabled life sciences services.
Growth Optimists
Valuation Skeptics
Growth versus margins
Growth Optimists
Revenue growth accelerated to 39.7% in Q1 FY27, and margin compression stems from one-time investments in AI platforms and acquisition integration, with a recovery expected from the second half of FY27.
Valuation Skeptics
EBITDA margins have fallen from 20.7% in FY24 to 16.9%, net profit was flat year on year, and there is no proof yet that heavy investments will translate into sustained margin expansion.
Premium valuation
Growth Optimists
Indegene's specialised life sciences model, higher revenue per employee and relationships with all of the world's top 20 biopharma firms justify a premium to traditional Indian IT companies.
Valuation Skeptics
The stock listed at roughly 30-33x FY24 earnings, opened at a 45% premium, and has stayed sideways since, trading at a premium to most IT peers with little room for execution misses.
AI as opportunity or risk
Growth Optimists
AI platforms like Cortex, NEXT and Tectonic act as productivity enhancers, potentially creating operating leverage through higher revenue per employee and improved margins.
Valuation Skeptics
AI monetisation remains unproven, and slower-than-expected AI-led revenue could weigh on valuations.
Key facts
- Company
- Indegene — mid-cap Indian IT firm focused on pharma and medical devices
- FY26 Revenue
- ₹3,511 crore, up 23.6% YoY
- Q1 FY27 Revenue
- ₹1,063 crore, up 39.7% YoY
- Revenue per employee
- ~$75,000, versus $40,000-50,000 for large Indian IT firms
- EBITDA margin
- 20.7% in FY24, declining to 16.9% in Q1 FY27
- IPO and pricing
- Listed May 2024 at ₹452 per share; opened at ₹655 (≈45% premium)
- Carlyle exit
- Sold remaining ~10% stake for ₹1,447 crore in June 2025
- AI platforms
- Cortex, NEXT and Tectonic
Sources
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