Indegene

Research evidence excerpt

Indegene

Global Markets Research

Indegene INEG.NS INDGN IN 31 July 2026

EQUITY: SOFTWARE & SERVICES

Slight miss on revenue; margins should recover from 2HFY27F Rating Remains Neutral

price INR 500 RemainsStrong deal pipeline with traction from GenAI-led solutions Target

Closing price INR 515 30 July 2026Marginal miss on revenue growth and EBITDA margin

Indegene posted 1QFY27 revenue of USD112.5mn (+2.6% q-q, +26.5% y-y) vs our expectation of

Implied upside -2.9%USD113mn (+27.2% y-y), driven by Enterprise Medical Solutions among business verticals (+7.8% q-q),

and by North America (+7.4% q-q) among geographies. Reported EBITDA margin at 16.4% was down Market Cap (USD mn) 1,296.3

10bp q-q (-400bp y-y) vs our expectation of 16.5%. Diluted EPS at INR3.3 was down ~0.2% y-y. ADT (USD mn) 1.4

Deal pipeline strong and consistent

Indegene signed one deal (USD3-5mn range) with a top-5 pharma customer and 4 other deals in the

Relative performance chartUSD1-3mn range (including 3 in commercial and 1 in medical). Management called the deal pipeline

strong and consistent, including pipeline with the company's largest customers — seen as key to 2HFY27

acceleration. CEO Manish Gupta stressed 2QFY27F priorities are: (1) converting the pipeline into signed

deals/revenue, and (2) restoring margins — both seen as achievable because they rest on contracts

already signed. Management also noted that ~60% of revenue is already output/outcome-linked and

expects this mix to keep growing. The >USD10M ACV, pure outcome-based deal signed in 3QFY26 with

a top customer went live in 4QFY26 due to which Indegene has been absorbing the cost, but revenue

recognition is deferred ~3 quarters and is expected to begin in 3Q FY27E, since payment is tied to client-