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Indegene Limited Call Transcript 2026
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INDGN/SE/2026-27/17
May 06, 2026
| BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001, India. Scrip Code: 544172 | National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051, India. Trading symbol: INDGN |
|---|---|
Dear Sir / Madam,
Sub: Transcript of the conference call on financial results for the quarter and year ended March 31, 2026
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the conference call for the quarter and year ended March 31, 2026, held on 30th April 2026.
The above information will be made available on the website of the Company: https://www.indegene.com/
This is for your information and records.
Yours Sincerely,
For Indegene Limited
Srishti
Ramesh
Kaushik
Digitally signed
by Srishti
Ramesh Kaushik
Date: 2026.05.06
19:12:04 +05'30'
Srishti Ramesh Kaushik
Company Secretary and Compliance Officer
Encl: As above
indegene
Indegene Limited
Third Floor, Aspen G-4 Block, Manyata Embassy
Business Park (SEZ), Outer Ring Road, Nagawara, Bengaluru-
560 045, Karnataka, India
Phone: +91 80 4674 4567, +91 80 4644 7777
www.indegene.com
CIN: L73100KA1998PLC102040
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indegene
“Indegene Limited
Q4 and Annual FY26 Earnings Conference Call”
April 30, 2026
indegene
MANAGEMENT: MR. MANISH GUPTA – CHAIRMAN AND CHIEF EXECUTIVE OFFICER
MR. SUHAS PRABHU – CHIEF FINANCIAL OFFICER
MR. ABHISHEK AGARWAL – HEAD OF INVESTOR RELATIONS
indegene
Indegene Limited
April 30, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to the Indegene Limited Q4 and Annual FY26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.
I now hand over the conference to Mr. Abhishek Agarwal, Head of Investor Relations, Indegene Limited. Thank you, and over to you, sir.
Abhishek Agarwal:
Thank you, moderator. A very good morning to all of you and thank you for joining us today for Indegene's Earnings Conference Call for the fourth quarter and full year ended financial year 2026. Today, we have with us Mr. Manish Gupta, Indegene's Chairman and CEO; and Mr. Suhas Prabhu, CFO, to share the highlights of the business and financials of the quarter.
I hope you have gone through our results release and the investor presentation, which have been uploaded on the website as well as the stock exchange website. The transcript of this call will be available in a week's time on the company's website. Please note that today's discussion will be forward-looking in nature and must be viewed in relation to the risks pertaining to our business. After the end of this call, in case you have any further questions, please feel free to reach out with the Investor Relations team.
I now hand over the call to Manish to make his opening remarks.
Manish Gupta:
Thank you, Abhishek. Good morning, everyone, and welcome to Indegene's Q4 FY26 earnings call. I want to start by acknowledging what this quarter and the fiscal year represents and not just in numbers, but also in strategic progress. FY26 was a milestone year for Indegene on 2 fronts, Q4 FY26 was the first ever quarter in our history where our revenues exceeded ₹1,000 crores. And for the full year, our revenues crossed ₹3,500 crores. This is another first. Two thresholds crossed in a single quarter.
More importantly, these are not isolated milestones. These are culmination of deliberate compounding work across our customer portfolio, our domain capabilities, our technology stack and our people. I will cover 4 topics today- our customer portfolio performance, our GenAI-led innovation wins, our competitive differentiator and our forward outlook.
My colleague Suhas will take you through the financial details. So, let's get into the financial snapshot. As I said, Q4 was our first INR1,000 crores-plus quarter. FY26, our revenues came in at ₹35,105 million, which is our first more than ₹3,500 crores year. Our growth for the year in INR terms was 23.6% and in dollar terms 18.2% YoY. Now let's talk about our customer depth and relationships.
I'm going to start off with the top 20. Across 27 years in life sciences and as an operating partner to all 20 of the 20 global pharma companies, we have built a kind of relationship density that compounds over decades not quarters.
For our top 20 customers, FY26 was a year of strategic deepening. We expanded significantly with several of our top 20 accounts.
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indegene
Indegene Limited
April 30, 2026
- Let me start with our largest customer. The customer is broadly stable in FY26. There was a bit of a hold due to a delay in a highly anticipated breakthrough as we continue to invest in the relationship.
The breakthrough came at the year-end. We won a significant Tectonic engagement starting with Germany and Suhas is going to talk about this later when he talks about the deals in the quarter. Now this then matters not just in its own right, but a very important beachhead with early results demonstrating value.
We are now actively in conversations with additional markets. The potential here is pretty significant. And FY27 is where we expect it to convert into visible growth and we are hoping this customer is going to cross over and become our first $50 million-plus customer.
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A third customer account this year crossed the $25 million revenue threshold reinforcing the depth and stickiness of our relationship.
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Finally, in Q3 of this year we closed a multiyear omnichannel deal exceeding $10 million in ACV. This was a fairly strategic deal. This is going to be a template for the industry with a very large company and has positioned us very strategically in this time. The latter half of FY27 will see this deal converting to revenue.
Across the top 20 as a group, revenue grew from ₹22,082 million to ₹25,200 million in FY26, steady, compounding expansion driven by portfolio breadth and recurring engagements.
With that, let me move to beyond 20. This has been faster growth on an expanding base, and this is where I want to spend a moment. Because the growth beyond our top 20 tells an important story about Indegene's scalability. Our total active customer base grew from 73 to 91 during the year.
The number of customers contributing more than $1 million in annual revenue grew from 41 to 53, an approx. 30% increase. Growth in this cohort outpaced the top 20 on a percentage basis, demonstrating that our land and expand model is working further down the customer pyramid. Several of these newer relationships have already scaled to $5 million ACV engagements.
The message here is clear. Indegene is not just a top-heavy business dependent on a handful of accounts, we are building a diversified durable portfolio with accelerating momentum at every tier. This is the engine that compounds. The outside top 20 cohort is where today's $1 million relationships become tomorrow's $25 million relationships.
And FY26 already saw multiple new customers cross the $5 million ACV threshold. The progression we ran inside the top 20 over the last decade is now playing out one tier down and it is doing so faster because of a few things. One is our own credibility and scale as a company and also because GenAI compresses the time to value.
Now let's talk about some of our AI-led solutions- where one of our values, innovation, is truly in motion. AI has been at the core of Indegene strategy for a decade. I remember setting up the office of CTO more than 10 years back and started investing heavily just in AI. The tangible
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indegene
Indegene Limited
April 30, 2026
proof of our ability to leverage AI is visible in our industry-leading revenue per employee, now at approximately USD75,000 per annum, up from USD56,000, 3 years back.
This is a step change in productivity driven by embedding technology and AI into how we deliver, coupled with our predominant managed-outcome pricing model. And we have not stopped.
We have a program called Transform AI inside the company. This program is targeting a further step change in adjusted revenue per employee as we continue to win upstream in adjacent areas and new revenue pools opening due to AI. All this stuff while we reengineer our own processes from the ground up.
This is what gives us confidence not only in our competitiveness, but also on the operating leverage in the coming years. What has changed in FY26 is pace of customer adoption and the size of the mandates we are winning on the back of GenAI-led solutions.
I will talk you through some specific wins, each demonstrating a different dimension of our capability.
Let me again talk about the GenAI-powered omnichannel orchestration deal with a top 5 customer, which I alluded to in our customer segment just a few minutes back. This customer selected Indegene for omnichannel orchestration using our Invisage platform and Tandem data capabilities acquired through BioPharm. The mandate covers personalized GenAI targeting across a multiproduct U.S. portfolio, which is north of $1 billion, approaching patent expiry. We are deploying on an outcome-focused commercial model, maximizing the profitability window of mature assets. This is GenAI embedded directly into revenue outcomes of this client.
With that, let me move to another one. Now this is end-to-end commercialization for a midsized biotech firm. A midsized biotech firm chose Indegene as a sole commercialization partner entrusting us with full life cycle: CRM implementation, global marketing content creation, and multichannel deployment. This is an integrated model that differentiates Indegene as a single partner capable of running the entire commercial engine.
Here, the client actually said, while we are doing CRM implementation, it's not just a technology implementation. It's a business transformation project and engagement, and we need somebody who understands our business well.
Let me talk about another one, an emerging pharma company for a complete product launch. An emerging pharma engaged Indegene to manage an end-to-end product launch across both commercial and medical functions. This is a replicable blueprint for hundreds of mid-tier and specialty pharma companies entering commercialization, a segment we are deliberately targeting as a high growth opportunity.
Let me move to the fourth one. AI-driven pharmacovigilance for safety. For large medical devices client, we are now managing global pharmacovigilance workflows using our proprietary NAEM (Next Adverse Event Management) technology, which is all AI based. This has significantly reduced manual-based processing volumes and accelerated aggregate reporting
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indlegene
Indegene Limited
April 30, 2026
timelines. The win demonstrates our AI-led innovation extends into medical and regulatory domain, not just commercial.
Let me talk now about one on the regulatory side after having spoken about safety. We set up a global innovation center model for a very fast-growing company, with more than $100 billion market cap. Within our enterprises medical services segment, we piloted a global innovation center where we are reimagining R&D operations from the ground up. We are using GenAI to accelerate FDA submissions and compress molecules speed-to-market. If this scales as anticipated, it represents a structural change in how pharma companies approach R&D operations. You think about it- you're cutting down the cycle time from a couple of months to a few weeks and that is unlocking significant value for companies and for patients, and Indegene is the one partner enabling it.
The next one I'm talking about is super exciting, although it's a pilot in very early days, but it has the potential to truly transform the industry. Agency-led AOR: 3 months to 3 days. 3 months to 3 days. This is what we demonstrated in a top 20 company for a very strategic upstream brand work. We piloted an Agency-of-record model without the agency. Working with a large pharma customer, we demonstrated the ability to create scientific briefs, creatives and near final concepts in 3 days with our Content Super App agents. This is what an agency-of-record in the United States, Europe typically does in a few months and is a very expensive process. This included doing a quick voice of the customer research, primary research using synthetic KOLs, using our proprietary Invisage and Tandem products. This was achieved through live co-creation workshops with the clients, replacing isolated agency processes with real-time technology enabled operating model.
This pilot along with global innovation model has genuine industry transformation potential. We are watching adoption signals closely and are very confident these pilots will succeed and get into real engagement in this financial year.
Given the strategic nature of these engagements, we continue to over invest in them. We're already seeing significant interest in this engagement in the industry overall and we are talking about them with all the clients and people are very open and receptive to learn from these. And we believe this has the potential to position us very strongly for the future.
I also want to talk about what specifics set us apart when we win these deals and what we learned in FY26 because it shapes everything we do.
GenAI equalizes access to technology. It does not equal access to knowledge. Every service firm now has the same foundation models, the same APIs, the same coding copilots. What separates winners from the rest is the depth of domain knowledge they bring on top and how systematically they convert it into agentic human in the loop workflows to deliver real business outcomes. For Indegene, with 27 years of life science expertise and a third of our workforce in deep-domain roles- medical (within medical, different therapy areas, different specializations), brand, creative, digital, analytics and tech- experiences of nuances of all the regulated and critical workflows, our own proprietary data. are not just relevant in the AI world, they are absolutely essential.
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indegene
Indegene Limited
April 30, 2026
These six wins are not isolated. They roll up into five next generation operating models we are now actively running in the market: One-Click submissions, Human-less Medical Legal Review processes, Agentic AOR, AI-embedded engagement, and Intelligent R&D operations. Each one of these replaces a manual fragmented industry process with a platform-driven, AI-embedded one. Each is a category we believe Indegene will define in years to come.
With that, let me move to another important thing which we have been grappling with for some time, and it's important that we talk about this very directly- Our category. We are a strategic partner for life sciences. And the most common mistake we see how we are analyzed is the one we want to correct today. Indegene is not an IT services company that happens to serve life sciences. Indegene is the strategic operating partner for the life science industry, purpose built over 27 years to design and run complex regulated commercial, medical and R&D operating models that define how this very important industry works. This distinction is not semantic. It is structural and it changes everything about how AI affects our business.
This isn't a claim. It's a pattern. Every decade, one force has reshaped life sciences. In the 1990s, it was globalization. Unfortunately, for the industry, we were not there as a company at that point in time. In the 2000s, it was move to digital. We are the ones who built digital field engagements very early on. In 2010s, it was content at scale, automated MLR; we built platform-driven content operations. Now as AI is at work, we already have and continue to run embedded AI operations at scale, and we've been doing this for a decade. When the industry transforms, Indegene leads. We don't react. We're already running the new model. And as I mentioned, and I'm going to say again, we started a decade back.
Four structural differences define our position and let me unpack each of these. This is fairly critical.
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We are a revenue partner, not a cost partner. We are embedded in the commercial and medical functions that generate revenue for our customers. Our primary stakeholders in client organizations are Chief Marketing Officers, the brand heads, the therapy heads, Chief Medical Officers on the medical affairs side, regulatory, safety teams. These customers don't come to us to cut costs, they come to grow their revenue, accelerate launches, improve pipeline success, manage compliance and risk for them. AI is a growth enabler for our clients, not a signal to reduce spend on partners like Indegene.
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The next one, and fairly important. Domain-led judgement intensive work, the work we do includes therapeutic content strategy, regulatory submissions, pharmacovigilance, omnichannel orchestration across the globe and very different markets, requires deep domain judgement that AI augments, but is not replacing. AI want to emphasize these are in very regulated areas. This is fundamentally different from coding or infrastructure where AI reception is far more direct.
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The third one and something which I remember talking with a lot of whom we met during our road shows in '23. Our outcome alliance commercial model. In an AI-enabled world, effort-based pricing is breaking down. Clients now don't pay for hours that AI does in seconds. Outcomes are becoming the new currency, and we've been operating on output and outcome-based contracts for years. We did not have to convert. We are the ones who rolled this playbook.
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indegene
Indegene Limited
April 30, 2026
- Let me take a step back and look at who plays in our space, who are the competitors. Strategic advisors bring frameworks but exit before execution. Global integrators bring scale but lack life sciences depth. IT offshore scalers compete on volume efficiency, but that is a fundamentally different category from ours. Sector boutiques have depth but lack platform leverage (tech and operating model). Indegene is the only player in life sciences that combines deep domain expertise, embedded AI platforms and outcome ownership at enterprise scale. Our true competition is agencies and CRO, and we are taking share from them accelerated by GenAI. And the pie itself is growing. As we run the themes I just spoke about, we are absorbing spend pools that did not previously sit with service partners like us- agency budgets, CRO clinical operations, internal regulatory costs. GenAI is not just shifting share, it grows our addressable market.
With that, let me come back to FY26. It was not just financial milestones. We delivered 4 strategic achievements that set up Indegene's next chapter, not only for FY27 but beyond.
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We made 3 acquisitions. BioPharm strengthened our omnichannel data and targeting capabilities in the commercial segment. Warn and Cake Communications are not new market entries, they are strategic additions of people with deep expertise and local market knowledge in key European geographies. This matters because as we take our global delivery model in Europe, credibility and relationships on the ground are decisive. We just spoke about our Tectonic engagement with our largest client in Germany. And now you can understand why we did Cake as an acquisition. These teams give us the ability to expand engagement from regional to global with local legitimacy.
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Tectonic at scale is the next one. Tectonic is our transformation model that combines GenAI with deep creative expertise to disrupt the traditional agency approach of developing creatives through effort intensive cycles that stretch over months. At year end we have secured 5 customers, 2 of them have already transitioned from pilot projects to long-term engagements. Crucially, the Q4 win in Germany with our largest customers provides strong momentum heading into FY27 with additional markets are actively in conversation, Tectonic is on track to become a material growth driver for enterprise commercial in FY27.
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Third one and we spoke to you about in our Q2 earnings call. We recruited senior leadership talent and thought leaders across our commercial medical leadership, strengthening our ability to engage at the C-suite level and we are having more and more of those conversations as we pursue more complex, larger transformation mandates for our clients.
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Last but not least, technology leadership. We maintained our innovation edge by embedding GenAI across the platform. Our next-generation Content Super App and Medical Writing Platform, both built by reimagining end-to-end customer workflows, are now in active deployment. Cortex is continuing to scale and get embedded in all the stuff we do. These are not incremental upgrades, they are category-defining products.
Together, these 4 moves- Inorganic depth in Europe, Tectonic at scale, Senior go-to-market bench, and category-defining platforms- are what gives us conviction in growth in FY27 and well beyond.
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Indegene Limited
April 30, 2026
With that, let me pass it over to Suhas.
Suhas Prabhu:
Thank you, Manish. Good morning, everyone. Let me dive straight into the financial performance for the quarter and the year. Quarter 4 revenue came in about ₹10,000 million, the first quarter in Indegene's history to cross this threshold, growing 6.5% quarter-on-quarter and a strong 32.8% year-over-year. For the full year, the revenue was ₹35,105 million, reflecting a 23.6% growth in INR terms and 18.2% in USD terms, ahead of FY25 on both measures.
Moving over to profitability. Our Q4 adjusted EBITDA came in at ₹1,889 million, growing 23.2% year-over-year. The full year adjusted EBITDA totalled ₹6,793 million, up 20.8% year-on-year.
Effective Jan 2026, we have categorized our forward contracts as cash flow hedges under Ind AS 109 and the adjustment to the EBITDA is made to reflect the impact on profitability if the contracts that were contracted between April 2025 and December 2025 were also considered as cash flow hedges effective start of the year. We had indicated this matter to be under consideration in our earlier call.
The high volatility in exchange rates, especially the depreciating INR against USD towards the closing days of the quarter has resulted in an incremental charge of ₹241 million in Q4 on the unexpired forward contracts. And therefore, this is the adjustment that we have done in the EBITDA from a like-to-like comparison. Considering this charge, the reported EBITDA would be lower at ₹1,648 million.
Moving ahead to PAT. We had a lower interest income due to lower yields and a higher amortization, as was mentioned in our Q3 earnings effective the acquisitions that we concluded in the recent past. Further, we have provided ₹203 million towards the estimated cost of settling the U.S. class action lawsuit filed in 2020 alleging breach of TCPA. I will delve more on this matter a little while later. This is a one-time non-recurring provision reflected as an exceptional item, and this impacts the PAT for Q4 and FY26 adversely. Hence, the Q4 PAT came in at ₹797 million and the full year PAT of ₹4,011 million, a 1.4% decline.
Excluding these non-operational onetime expenses and factoring retroactive adoption of the cash flow hedge accounting from the start year, PAT would be higher at ₹4,583 million, growing 12.7% year-on-year. On an adjusted basis, the underlying profitability of the business is meaningfully stronger than the reported figures suggest, and the year-on-year trajectory is firmly positive. I would request you to refer Slide 15 of the investor deck for more details.
Coming back to the exceptional item and the provision of ₹203 million. This is pertaining to a long outstanding matter, a U.S. class action lawsuit in 2020 relating breach of the Telephone Consumer Protection Act, which we had disclosed in our DRHP/RHP and provided updates as the case made slow progress over the year in our subsequent financials. In January 2026, both parties commenced a mediation process as was recommended by the court.
With multiple rounds of negotiations over the last 3 months facilitated by the court appointed mediator, we believe that we have now reached a stage of potential settlement and the ability to quantify the liability basis the terms laid by the mediator. As of today, the mediation process is
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Indegene Limited
April 30, 2026
close to completion with the terms being drafted while the court approval is still awaited. Hence, we are making this provision basis such terms and the ₹203 million is the provision of the anticipated settlement.
Further, the origin of this case relates to an engagement in FY19-20 where we used fax as a channel for outreach. Faxes were rarely used prior to this engagement, and this is no longer an active channel for outreach.
And hence, we do not believe that there are any further such liability exposures beyond the one instance that we had in 2020.
With that, I would want to spend a moment on the strong cash position. Cash generation is also another way to assess the operating health of the business and not just PAT. On that measure, FY26 was a standout year. Operating cash flows were ₹6,508 million versus ₹4,419 million in the prior year, which is a 162% ratio on PAT.
This is, of course, higher due to the higher non-cash expenses and amortization charges, but also an improvement in the DSOs to 63 days from 72 days in the past year. Free cash flows were a strong ₹6,065 million versus ₹4,119 million in the past year.
Our balance sheet at the year-end reflects this trend. We closed FY26 with a cash and investment position of approximately ₹15,385 million, just ₹1,258 million lower than FY25 despite ₹7,253 million of outflows towards the acquisitions that we made during the year.
With this, let me move on to the dividend announcement. Consistent with this cash strength and reflecting the Board's confidence in the business, we have proposed a final dividend of ₹2.25 per equity share for FY26. This compares to ₹2 per share last year, a 12.5% increase. This recommendation is subject to shareholders' approval at the upcoming AGM and reflects both the strength of our FY26 earnings and our commitment to delivering consistent returns to shareholders alongside continued investments.
Moving further to the segmental performance, both Enterprise Commercial (ex-BioPharm) and EMS grew by approximately 17% and 16% year-on-year, respectively. Even BioPharm acquired in October 2025 grew by 15% sequentially in Q4.
Our geographical mix remains stable with North America at 71.6%, Europe at 25.5% and the Rest of the World at 2.9%, with North America contribution increasing marginally by approximately 2% due to BioPharm, which is entirely a U.S. focused business.
Importantly, the pace of customer conversations and AI-driven innovation is now distributed across both medical and commercial segments, and this gives us confidence that both enterprise commercial and enterprise medical will be meaningful growth contributors heading into FY27.
Finally, coming into our Q4 deal activity. Our Q4 bookings reflect sustained deal momentum. We closed 1 deal of $3 million plus ACV in our clinical business with a new customer. Further, we closed 7 deals of $1 million plus ACV during the quarter, 4 of which are from our top 20 customers adding to the Enterprise Commercial Segment, including the Tectonic engagement for Germany with our largest customer.
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indegene
Indegene Limited
April 30, 2026
Further, there is an expansion of an existing Omnichannel project with a mid-sized pharma company. We signed 2 engagements with new customers- an engagement with a biotech player providing Med Info services, which is part of our Enterprise Medical Segment, and an engagement to operationalize core digital commercial capabilities for an upcoming pharma company's new launch drug's pre and post launch activities. These wins confirm that our go-to-market investments are translating into consistent new pipeline generation and conversion.
These wins, combined with earlier wins provide revenue growth momentum heading into FY27. Further, you will also recollect the investments that we made, resulting in 150 basis points impact on our EBITDA margins, that we mentioned 2 quarters ago. With the growth momentum, we believe that we are on track to improve our profitability and EBITDA margins in FY27 and the second half of FY27 will see us revert to the earlier levels of higher margins with these investments getting fully absorbed and delivering growth.
Further, we will also see a positive impact of the interest income with high cash balance and stable yields. Amortization stabilizing and coming off towards the latter half of FY27 and the impact of the one-off and exceptional items fading away, we believe that PAT in FY27 will see a significant upward movement.
With that, let me pass it on back to Manish for the outlook.
Manish Gupta:
Thank you again, Suhas. 12 months ago, as we entered FY26, I used the phrase cautiously optimistic. I would be precise about how I would characterize the mood entering FY27 and why it is meaningfully different.
The 3 concerns that warranted caution a year ago- new U.S. administrative uncertainty, regulatory policy overhang and macro volatility have largely been resolved. The pharma industry demonstrated resilience and strategic importance through calendar year 2025 with the industry growth of 9% versus 6.4% in CY2024.
Looking ahead, the industry is positioned to grow at a healthy 5% to 8% CAGR from 2026 to 2028. This is our customer base- stable, funded and growing.
Against that backdrop, our own pipeline entering FY27 stands stronger & higher than last year, with balanced strength across both our top 20 customers and outside top 20 cohort. The diversification of our pipeline is as important as its size. It means we're not dependent on a handful of renewals or 1 large deal closing.
I want to be direct, we're not providing formal revenue guidance. What I will say is this. Our customer portfolio is growing in both depth and breadth, and the outside top 20 segment is growing faster. Our GenAI-led solution wins span across every customer segment and both business lines, commercial and medical, and it is gaining significant traction. Tectonic has customer validation and is set to generate meaningful FY27 revenues. Our pipeline is larger, more balanced and better qualified than at any prior year end.
Our competitive position is strengthening significantly in context of AI industry trends. In an AI-led world, the competitive structure of a market is being rewritten in our favour- agency, RO,
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indegene
Indegene Limited
April 30, 2026
and CRO spend is consolidating into specialized technology-led partners, and Indegene is the most credible such partner in life sciences.
And this trajectory extends well beyond FY27. We believe Tectonic, AI-led Omnichannel deals, AI-embedded medical operating models, Top 20 cohort, and Outside Top 20 cohort, all will continue to mint new $25 million-plus relationships and have the potential to drive multiyear growth.
With that, I would say we enter FY27 not cautiously optimistic but excited and confident. Confident to convert pilots into platforms, platforms into operating models and operating models into the industry's new default. This has been Indegene's pattern across every prior inflection in life sciences. And it is the pattern we are running now: from promise to performance. That is what we believe, FY27 and the years beyond will demonstrate.
That's all I had. Thank you.
Moderator:
Thank you very much. We will now begin with the question-and-answer session.
Moderator:
We will take the first question is from the line of Prakash Kapadia from Kapadia Financial Services.
Prakash Kapadia:
I had 2 questions. The revenue per employee has increased to around $75,000 from $67,000 last year. Is it just the on-site mix increase or there is something else or any other metrics which you can highlight?
And secondly, if I look at more than $10 million revenues, there are 10 clients which are same as compared to last year. So, is there a product life cycle for larger clients, which is showing up there because we've not seen any increase in number of clients in that cohort? So, these are my 2 questions.
Manish Gupta:
I'll start off with latter one and pass it on to Suhas. We hear that cohort is stable. It's also a function that at least one of our clients was just tad below that $10 million. And from a categorization perspective, $9.9 million something falls into the other bucket.
And these customers are taking a bit more time to change their operating model, adopt some of the platforms and discussions we've been having with them. Having said that, we are very bullish that this cohort also will increase. It's just a matter of cycle times and when they do change management internally. Suhas?
Suhas Prabhu:
Thank you, Manish. And moving to the first question on the revenue per employee in our fact sheet, the KPIs, you'll observe that our on-site offshore mix has remained fairly stable over the past many years, actually on-site increasing marginally over the last couple of years. But having said that, I would like to highlight that over the last 5 years, our RPEs have consistently grown from $51,000 to close to $75,000 today and also from $66,000 to $75,000 on a year-on-year basis.
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Indegene Limited
April 30, 2026
So, there is a sustained effort to increase this in combination with the technology impacting our operations positively, combined with the outcome or output-based pricing model in our engagement, which help us retain the benefits of the productivity increase without being dependent on timesheet-based or input prices.
Manish Gupta:
I would add one more line. As I said earlier, in this world, the competitive structure of the market is being rewritten and right now all the directions, it looks like that's being written in our favour. And hence, the quality of the kind of engagements we are running with our customers are much more strategic, which also is resulting in the kind of contracts we write.
Prakash Kapadia:
Sure. And lastly, Suhas is it fair to assume debtor days will be more or less stable at these levels and we can have growth also or any major change envisaged going forward?
Suhas Prabhu:
So, debtors have reduced significantly, resulting in higher cash flows. And we are seeing a trend reducing from mid-80s about 5 years ago to the 60s as we speak. But having said that, I would guide towards mid-60s to 70 days on a steady basis.
Moderator:
The next question is from the line of Prolin Nandu from Edelweiss Public Alternatives.
Prolin Nandu:
Just 2 questions from my side. One is on this AI initiative that you have talked about. Now what I gather is that what works in our favour is the domain knowledge and the regulatory aspect of the industry in which we deal with. Just wanted your thoughts on how defendable are these moats, so to say? Don't you think that over the period of time, maybe this domain knowledge can also be commoditized by some of the large LLM players like they have been doing in other industry. Why do you think that cannot happen in our industry? So that's my first question on the AI side.
And the second question is on the margin, where you have talked about some of the investments that you are making and you coming back to your previous high sometime in the second half of FY27. My question here is that what is the risk that this could probably catch up to stay relevant in the AI world? We continue our investment part and not bear the fruits of that operating leverage that we are envisaging. So yes, pretty much the questions are more on a medium-term outlook and to do with AI?
Manish Gupta:
That's a fair question. So let me start with the first one. Our real moat over here, which we continue to invest and solidify every day is domain expertise. And domain expertise is just not a very broad term. For example, when I spoke about "the 3 months to 3 days" thing that required therapeutic area expertise, that required medical expertise, that required creative expertise, very market nuanced expertise for different market. It also used our own proprietary data sources. So along with domain expertise, we are also bringing in our proprietary data sources.
Most of the cases, we see whenever we're building our tech product, LLMs on their own are not solving for the problem. We are using all the LLMs, all the frontier models. We are working with AI labs, names which you might not have heard of, but have cutting-edge labs in different parts of the world. But we have to bring a couple of them together along with our technologies to start to solve different problems.
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Indegene Limited
April 30, 2026
And the reason why we are able to articulate that well is again the domain expertise. So at least in the medium term, call it 3 to 5 years, we don't see LLMs having the ability to do this. LLMs still don't have the reliability when you're talking about in operating grade. So, the human in loop is going to be even more important. There has been an FDA call out to one of the companies in just last 2 weeks a warning letter that looks AI generated.
Now what happens in the medium to long term, that jury is still out. But domain expertise and data, embedded in these platforms, which are going to be a combination of multi platforms is the approach we are taking, and we believe that's fairly defensible in the medium term.
And the second question was the AI investment. You're absolutely right. The reason why you see us talking about our margins recovering over a couple of quarters is because we continue to invest. We have baked in a bunch of investments. This year, our R&D cost as we call it, has gone up. It's tad above 2% of our revenues.
We're making those investments. We have made GTM investments. We are increasing those investments as well and a bunch of areas in the domain expertise because customers also need much more handholding when they're going through this turn. So those investments have been factored in.
And one reason why we're not saying that our margins will expand beyond what they used to be, while there might be leverage over there, is because we believe that anything above that range we are operating in, we are going to reinvest in the business. Maintaining this broad range is very doable as we see it today.
Moderator:
The next question is from the line of Raghav Maheshwari from Kamakhya Wealth Management Private Limited.
Raghav Maheshwari:
Congratulations on good top-line work. Sir, my first question building up on the question that the last participant had, I just wanted to get a bit of a technicality here. Sir, we talk about Generative AI, we talk about Cortex AI. Just wanted to understand what kind of AI that is. Is it like an in-house trained element or it is like a wrapper with proper role defined by your domain expertise? So just wanted to understand what kind of AI we are into.
Manish Gupta:
So, what we are doing is let's think about it, there are frontier models, and there are lots of them. There are obviously, the large language ones, there are much more specialized ones. We are using those along with a bunch of very specialized things, for example, computer vision. We partner with large action models. That's another category. So, I can go on and on. There are a bunch of these very specialized things along with the large frontier models. We are partnering a bunch of those things. We have our own engineering team, which is building various stuff. Those are the platforms which we are integrating from a pure tech perspective, and we realize different combinations work well for different use cases. Now what is Cortex? Cortex is a knowledge engineering platform which is meant for developing agentic workflows with all the security, enterprise security, scalability, meant for life sciences. That enables us to build agents quickly using a knowledge engineering approach. We have also decoupled the domain layer from the technology layer so that we can very quickly scale up many use cases, which is what Cortex has
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Indegene Limited
April 30, 2026
enabled. So that's the broad approach. Now we continue to build agents, and agents is just one part of it. How do you reconfigure workflows? How do you think about skills in context of those workflows? All that stuff is up for change. So those new skill sets, new workflows along with these agents. That's the direction the industry is moving in. And of course, the agents are using the platforms I spoke about.
Raghav Maheshwari:
Right. That was good information. And sir, second thing which I wanted to ask a little bit if you can throw light on FY27. What are some of the growth drivers for the year? And what kind of revenue trajectory are we looking for? And most important thing is what are we planning to do differently than what we did in FY26?
Manish Gupta:
FY27 is going to be more a year of scaling what we did in FY26. In FY26, we did a bunch of things different. We made investment in talent, we crystallized on solutions with bunch of our clients across the board. We won some very marquee engagements I spoke about earlier.
So, we are not in a mode to do anything different from a scale perspective. Everything we started on FY26, we feel vindicated that we are moving in the right direction, and FY27 is going to be doubling, tripling down in them to scale, whether it's on the customer side, engagement side, revenue, rejigging our own internal locks and ways of doing things. You want to add on, Suhas?
Suhas Prabhu:
Maybe to put a little more colour to that. What Manish mentioned on the GenAI-led wins. Our customer engagements which have moved from experimentation to POCs to hard dollars and long-term engagements and commitments.
That combined with Tectonic investments we have been doing over the past many quarters, now getting crystallized with 2 customers moving into long-term engagements. Specifically, our largest customer signing up with Germany as a region, but also active and very high probable pipeline for many other regions with the same customer.
And finally, I would add the consistent $1 million-plus wins that we have been talking about for the past few quarters give us the confidence of the strength of the revenue visibility, combined with the strong pipeline that we continue to generate and carry as we speak.
One last final comment- that $10 million win that we had mentioned in quarter 3, while it has kicked off and started. From a revenue recognition perspective, it is deferred because this is an outcome-based pricing model and will be entirely recognized in FY27. So, these are some of the specifics of why we feel confident as we move into FY27.
Moderator:
The next question is from the line of Lakshminarayanan from Tunga Investments.
Lakshminarayanan:
Few questions from my side. I understand that we work with top innovator companies. Just want to understand what kind of solutions we have for generic companies or even small size companies. They may find it difficult to offer the 70K+ revenue per person. Is there a market that exists or do you intend to expand through either generic companies as well as small or mid-sized companies into pharma?
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Indegene Limited
April 30, 2026
Manish Gupta:
Mid-sized and small companies is something which we are expanding rapidly. We are seeing significant traction. In fact, I spoke about some of the deals where we are launching a product for a small biotech. And our model of launch is becoming the way to go for a lot of these companies.
We have a customer talking about in public domain that they were planning to hire a lot of reps, but then we showed up and they had to add only 25 reps and getting everything amplified by our omnichannel engagement.
There's another customer where we are doing end-to-end medical and commercial functions. So, the whole biotech, and smaller segment, is attractive segment for us and we believe we will scale over there. That segment also seems to be getting tailwinds in general. The biotech in the U.S. had become very tough from a funding environment. It's coming up now and been on the upswing. So that is one part.
As far as generics are concerned, we do some work with them. We have some revenues coming from generics. But if I just contrast the opportunity we have with innovative pharma companies, where, as I mentioned earlier that we believe we will have $100 million clients in some years versus the other part. So, we want to prioritize the resources accordingly.
Moderator:
The next question is from the line of Yash Mehta from AART Ventures.
Yash Mehta:
Sir, I wanted to ask what has been the organic growth in constant currency terms in Q4 FY26?
Suhas Prabhu:
Constant currency terms year-on-year growth has been 12% organic and a little north of 3% QoQ. You can look at even our financial disclosures in the investor presentation where we have provided the ex-BioPharm proforma financials and that provides more details beyond the revenue.
Yash Mehta:
And sir, how does the margins span out in FY27 considering the integration with BioPharm?
Suhas Prabhu:
So, the integration of BioPharm was successfully completed ahead of schedule towards the end of February. The transition services from the seller was originally planned to get concluded end of March. This completion of the transition would be adding to basically synergies on the G&A side.
But as we speak, we are also looking at synergies on the data subscriptions, on the business operations, and eventually go-to-market. And we would progressively start impacting us through the quarters in FY27 more positively. But G&A would be the immediate impact that we anticipate to see coming in the next quarter itself.
Moderator:
Thank you very much. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to Mr. Manish Gupta for closing comments.
Manish Gupta:
Thank you. I want to close by thanking all our 5,000 plus colleagues globally whose dedication and expertise make every one of these wins possible. I also want to thank our customers for the
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April 30, 2026
trust they have placed in Indegene. And, of course, our investors and analysts for their continuous engagement and support. Thank you so much.
Moderator:
Thank you, members of the management. On behalf of Indegene Limited, that concludes this conference. Thank you all for joining with us today. And you may now disconnect your lines. Thank you.
(This document has been edited for readability and is not a verbatim record)
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