Motilal Oswal said Indegene is well placed to benefit from rising demand for outsourced services and strengthen its strategic role with life sciences clients.
The brokerage expects expanding drug pipelines, increasing clinical trial activity and the emergence of new disease areas to add complexity for life sciences companies. At the same time, regulatory and affordability pressures are tightening budgets and timelines, prompting pharmaceutical companies to increasingly outsource non-core functions and focus internal resources on core research and development.
Against this backdrop, Motilal Oswal sees integrated players such as Indegene, with capabilities spanning clinical, regulatory, medical and commercial operations, as well positioned to capture the growing outsourcing opportunity.
Operationally, Indegene remains in the top quartile, supported by higher revenue per employee than IT services peers and nearly three times that of healthcare business process outsourcing peers.
Motilal Oswal estimates revenue, EBIT and PAT to grow at CAGRs of around 19%, 29% and 27%, respectively, in INR terms over FY26 to FY28.
The brokerage expects EBITDA margin to recover to 19% to 20% by Q4 FY27, supported by operating leverage.