Buy Indegene; target of Rs 718: Motilal Oswal

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Indegene's strong 2QFY27 revenue growth of 39.5% YoY is driven by Enterprise Commercial Solutions, contributing 71.3% to consolidated revenue.
  • The company's deal momentum remains strong, with nine USD1m+ ACV wins, including one USD5m+ deal and two USD3–5m deals.
  • Indegene's AI-led growth opportunities, such as Agentic AOR, are gaining traction, reducing pharma content development timelines from months to days.
  • BioPharm-led synergies are strengthening cross-selling opportunities, competitive positioning, and large-deal conversion.

Thesis Validation Checklist

  • Revenue ramp-up of the USD10m outcome-based omnichannel contract in 4QFY27.
  • Commercial scaling and adoption of Tectonic and Agentic AOR offerings.
  • Sustained growth across top-20 clients and customer diversification.
  • Achievement of 19%+ EBITDA margin by 4QFY27.
  • Conversion of strong deal wins into revenue growth and operating leverage in 2HFY27.