IGC reported QQ3 2025 results with modest revenue on a small base but meaningful profitability headwinds and a tight liquidity position. Revenue came in at $0.257 million, up 25.98% year-over-year but down 37.62% quarter-over-quarter, while gross profit was $0.104 million for a gross margin of ~40.5%. Operating losses persisted at $1.878 million and EBITDA deteriorated to a negative $1.721 million, translating into a net loss of $1.829 million and an EPS of -$0.0236. Management commentary is not available in the provided transcript data, limiting qualitative insights from the earnings call; accordingly, the synthesis below emphasizes quantitative signals and the implications for investors.
The cash flow profile remains challenged: operating cash flow was -$1.317 million, capex was negligible at -$0.027 million, yielding free cash flow of -$1.344 million for the period. The company closed the quarter with cash and equivalents of $0.470 million and total debt of $0.270 million, resulting in a net debt position of -$0.200 million. The balance sheet shows total assets of $9.078 million, total liabilities of $2.819 million, and shareholders’ equity of $6.259 million, with a current ratio of 1.15 and a quick ratio of 0.61, signaling modest liquidity cushions but limited near-term liquidity runway.
From a business model perspective, R&D outlays of $0.852 million dwarf the quarterly revenue, underscoring a heavy investment cadence in life sciences initiatives relative to a small revenue base. The company reports elongated working capital dynamics (Days Sales Outstanding ~32.2; Days Inventory Outstanding ~843; Days Payables Outstanding ~491), implying a bloated working capital cycle and tight cash conversion. While the balance sheet remains relatively low-leverage, the lack of operating profitability and negative operating cash flow indicate that near-term value creation hinges on achieving revenue scale, improving efficiency, or securing additional financing to fund ongoing investment. Investors should monitor trajectory toward sustainable profitability, cash burn rate, and any strategic announcements around monetization or partnerships in IGC’s Infrastructure and Life Sciences segments.