Executive Summary
IGC reported a muted QQ1 2025 by revenue standards with $0.272 million of revenue against $0.109 million cost of revenue, yielding a gross profit of $0.163 million and a robust gross margin of approximately 59.9%. The quarter’s earnings were heavily suppressed by elevated research and development spend and ongoing selling, general, and administrative outlays, producing a net loss of $2.378 million and EBITDA of $(2.216) million. Operating income stood at $(2.396) million, while the company generated negative operating cash flow of $(1.752) million and free cash flow of $(1.883) million. Diluted EPS was $(0.0327) for the quarter on 72.8 million weighted-average shares.
Strategically, IGC continues to operate across two principal domains: Infrastructure (rental and contracting activities) and Life Sciences (Hyalolex, Holief, Herbo, and Sunday Seltzer brands). The revenue base remains very small relative to a typical diversified industrial company, leading to outsized impact from discretionary spend and project timing. The balance sheet shows modest liquidity with cash and cash equivalents of $1.824 million and total debt of $0.338 million, yielding a net debt position of $(1.486) million. The company also issued approximately 2.509 million common shares during the period, signaling dilution risk for existing holders while financing activity supplied additional liquidity.
Looking ahead, management did not provide formal quarterly guidance in the 10-Q. The near-term path to profitability appears anchored to achieving meaningful revenue growth in both segments and achieving operating leverage by reducing high R&D and SG&A costs. In the context of microcap peers, IGC trades with a high price-to-sales multiple despite negative profitability, underscoring the need for clear revenue acceleration or a material strategic milestone to recalibrate investor expectations.
Key Performance Indicators
QoQ: -7.80% | YoY:-50.99%
QoQ: -10.41% | YoY:-12.01%
QoQ: 17.57% | YoY:-14.60%
Key Insights
Revenue: $0.272 million in QQ1 2025, YoY change: -50.99%, QoQ change: -7.80%
Gross Profit: $0.163 million, YoY change: +38.14%, QoQ change: -4.68%
Operating Income: $(2.396) million, YoY change: -12.01%, QoQ change: -10.41%
Net Income: $(2.378) million, YoY change: -14.60%, QoQ change: +17.57%
EPS (Diluted): $(0.0327), YoY change: +16.37%, QoQ change: +25.00%
EBITDA: $(2.216) million, EBITDA Margin: -8.15%
Earnings quality indicators show substantial operating loss driven by elevated R&D and...
Financial Highlights
Revenue: $0.272 million in QQ1 2025, YoY change: -50.99%, QoQ change: -7.80%
Gross Profit: $0.163 million, YoY change: +38.14%, QoQ change: -4.68%
Operating Income: $(2.396) million, YoY change: -12.01%, QoQ change: -10.41%
Net Income: $(2.378) million, YoY change: -14.60%, QoQ change: +17.57%
EPS (Diluted): $(0.0327), YoY change: +16.37%, QoQ change: +25.00%
EBITDA: $(2.216) million, EBITDA Margin: -8.15%
Earnings quality indicators show substantial operating loss driven by elevated R&D and SG&A spend relative to a tiny top line. The gross margin remains attractive at about 59.9%, reflecting a favorable product mix or cost of goods sold control, but does not offset the heavy operating expense base.
Liquidity and capital structure: cash and cash equivalents $1.824 million; total debt $0.338 million; net debt $(1.486) million; current ratio 1.77; cash flow from operations $(1.752) million; free cash flow $(1.883) million. Equity attributable to shareholders equals $7.880 million, signaling a modest equity cushion against losses. The company issued 2.509 million common shares in financing activities, highlighting ongoing liquidity needs and potential dilution concerns for shareholders. Selling, general and administrative expenses and R&D collectively weigh on near-term profitability, with limited visibility into a recurring free cash flow trajectory.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
272.00K |
-50.99% |
-7.80% |
| Gross Profit |
163.00K |
38.14% |
-4.68% |
| Operating Income |
-2.40M |
-12.01% |
-10.41% |
| Net Income |
-2.38M |
-14.60% |
17.57% |
| EPS |
-0.03 |
16.37% |
25.00% |
Key Financial Ratios
operatingProfitMargin
-881%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.03
Management Commentary
No earnings call transcript data were provided for QQ1 2025. As a result, there are no management commentary highlights or thematic quotes available from an earnings call to contextualize the numbers in this report.
N/A – No earnings call transcript available for QQ1 2025.
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N/A – No quotes available from management for QQ1 2025.
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Forward Guidance
No formal numeric guidance was disclosed in the QQ1 2025 10-Q. Given the current revenue base and expense profile, a credible near-term path to profitability would require: (1) a material uplift in revenue from both Infrastructure and Life Sciences segments, (2) meaningful reduction in R&D and SG&A spend as a percentage of revenue, and (3) a plan to convert non-cash or one-off costs into lasting operating leverage. Investors should monitor: quarterly revenue growth rate, gross margin stability with scaling, SG&A and R&D as a percentage of sales, cash burn trajectory, and any transformative partnership or contract wins in infrastructure or CBD/hemp segments. The absence of explicit guidance increases their sensitivity to macro shocks and regulatory changes affecting the Life Sciences portfolio.