| Q1 Revenue | ₹2,150 Cr26% YoY Growth |
|---|---|
| Market Cap | ₹16,493 CrPharmaceuticals |
| US Generics Growth | 49%Year-on-Year |
| RSI | 57.09Neutral Zone |
Key highlights
- Consolidated revenue grew 26% YoY to INR 2,150 Cr, driven by broad-based growth across all business units
- US Generics revenue surged 49% YoY, supported by high volume growth and the launch of Bosutinib with 180-day exclusivity
- The API business delivered 33% YoY growth, while the Animal Health segment grew by 24%
- Management raised FY27 revenue growth guidance to the mid-teen range, up from the previous low double-digit estimate
- Reported EBITDA stood at INR 348 Cr with a 16% margin, absorbing a 150 bps dilution from US branded business investments
- Seven new products were launched in the US during Q1, with 15 additional launches planned for the remainder of the year
Financial Performance and Margin Dynamics
Alembic Pharmaceuticals reported a consolidated revenue of INR 2,150 Cr for Q1 FY27, representing a 26% increase compared to the same period last year. Net profit for the quarter rose 12% YoY to INR 173 Cr. The reported EBITDA margin was 16%, reflecting better utilization of manufacturing networks and strong volume contributions.
However, margins were partially impacted by a planned 150 basis point dilution due to ongoing investments in the US branded specialty platform. The company recently transitioned to a new tax regime, resulting in an effective tax rate of approximately 22% for the quarter.
Segmental Performance and India Branded Business
- International Generics: Grew 37% YoY, with the US market specifically contributing a 49% increase primarily through volume and new launches
- API Segment: Recorded 33% growth despite market pricing pressures, driven by strong demand and capacity debottlenecking
- Animal Health: Delivered a robust 24% growth, now accounting for 22% of the India business revenue
- India Human Health: Grew 7%, with specialty therapies like Gynecology, Gastrology, and Ophthalmology continuing to perform well
- Chronic Portfolio: Management is focusing on building a high-quality prescription base, with specialty businesses making up nearly 60% of total domestic revenue
Strategic Outlook and Guidance Raise
At the beginning of the year, we had indicated that the US Generics could grow in the low to mid-teens... we now expect the US business to grow mid to high teens in the year.
Capital Allocation and Debt Management
The company reported a gross debt of approximately INR 1,600 Cr as of June 2026. This increase from March levels was attributed to higher working capital requirements and increased receivables following strong sales. Management intends to optimize working capital and reduce debt levels to approximately 1x EBITDA over the coming quarters.
Recent capital expenditures amounted to INR 400 Cr, aimed at enhancing manufacturing capabilities and debottlenecking facilities to support long-term growth. R&D expenditure for the quarter was INR 186 Cr, representing 9% of total revenue.
What to Watch
- Expiration of the 180-day marketing exclusivity for Bosutinib strengths in November 2026
- Execution of the remaining 15 planned product launches in the US market for FY27
- Progress of the US branded specialty business toward its goal of reaching breakeven by year-end
- Impact of management changes in the India human health division on domestic growth rates
- Trajectory of the high-teens margin guidance for the core business as operating leverage scales
“Q1 FY27 has been a strong start to the year with broad-based growth across all the businesses and continued execution on the strategic priorities that we outlined at the beginning of the year.”
“The core margin improving to high-teens and which will partially get offset by the margin dilution from US branded business, which we said will be about 150 basis points, right? So that remains intact.”
| Share price | ₹839.05 |
|---|---|
| Market capitalisation | ₹16,492.63 Cr |
| Revenue (annual) | ₹7,344.90 Cr |
| Net profit (annual) | ₹674.77 Cr |
| Revenue (latest quarter) | ₹2,149.77 Cr+16.35% vs previous quarter |
| Net profit (latest quarter) | ₹173.07 Cr-14.62% vs previous quarter |
| P/E (TTM) | 23.78×Sector 44.55× |
| Promoter holding | 69.87%+0.13% QoQ |
| FII holding | 4.17%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Alembic Pharmaceuticals Limited providing the transcript of the Post Results Conference Call held on August 4, 2026. Market figures from a third-party data provider.
