Synopsis: This pharma stock rose 7% post strong Q2 numbers with 16% revenue growth and 26% EBITDA growth. Strong US / Ex-US generics performance, steady India branded business and continued R&D focus & ESG long term targets strengthened optimism.
This company is in the business of development, manufacturing, and marketing of Pharmaceuticals products i.e. Formulations and Active Pharmaceutical Ingredients is now in the focus after its board approved Q2 results with EBITDA growth of 26%.
With market capitalization of Rs. 18,654 cr, the shares of Alembic Pharma Ltd are closed at Rs. 960.10 per share, increased 7% in today’s market session making a high of Rs. 998, from its previous close of Rs. 924.30 per share.
YoY performance
Revenue from operations are up by 16% from Rs. 1648 cr in Q2FY25 to Rs. 1910 cr in Q2FY26. Net profit grew by 20% from Rs. 153 cr to Rs. 184.7 cr. EBITDA up by 26% at Rs. 325 cr. EBITDA margin raised from 16% to 17%, PAT margin also raised from 9% to 10% over the same period.
QoQ performance
Revenue from operations are up by 12% from Rs. 1711 cr in Q2FY25 to Rs. 1910 cr in Q2FY26. Net profit grew by 20% from Rs. 154 cr to Rs. 184 cr. EBITDA margin stands flat at 17%, PAT margin raised from 9% to 10% over the same period.
Shaunak Amin, MD of Alembic Pharma said that the company has delivered strong Q2 performance with 16% growth by focusing on profitability and disciplined execution.
He mentioned that Alembic continues to invest in R&D (around 10% of revenue) to build future growth products, especially in high-value complex segments like injectables, peptides and oral drugs. He also added that the recent acquisition of Utility Therapeutics in this quarter will help Alembic enter the branded drugs space in the US market.
Operational Highlights
Alembic’s India branded business grew by 5% YoY this quarter and generated Rs. 639 crore revenue. Growth was mainly led by gynaecology, eye care and animal health categories. Their cough & cold medicine portfolio also performed well in line with the market. The company also launched 2 new branded products during this quarter to strengthen its India portfolio.
In the international business, US generics delivered strong 21% growth to Rs. 566 crore with 3 new launches during the quarter. The ex-US international generics business also did very well, growing 31% to Rs. 392 crore. Alembic additionally received 6 more ANDA approvals during this quarter taking its cumulative ANDA approvals to 226, which will support future global launches and scale.
Alembic Pharma reported strong revenue growth across segments. In Q2FY26, total revenue stood at Rs. 1,910 crore, up 16% YoY from Rs. 1,648 crore, driven by India formulations up 5%, US up 21%, Ex-US up 31% and API up 15%.
Targets set by the company
Alembic has set clear ESG targets where the company aims to become Net Zero by 2050, turn water neutral by 2027 and plant 50,000 trees by 2027. On the environment front, Alembic is among the top 10 pharma companies in India with approved SBTi emission targets and has taken multiple steps like installing a 24 MW solar plant, reducing water consumption by 20%, recycling 81% of its water, developing recharge wells, planting 25,000+ trees and reducing landfill waste by 16%.
The company reported zero fatalities, improved safety culture, received Great Place to Work certification for the third straight year and its CSR initiatives have impacted over 2.44 lakh beneficiaries. On governance, it has strengthened supplier code of conduct, brought ESG based standards for vendors (27% already assessed), and initiated a full organizational risk assessment to improve transparency and responsible operations.
About the company
Alembic Pharmaceuticals Limited, a vertically integrated research and development pharmaceutical company, has been at the forefront of healthcare since 1907. Headquartered in India, Alembic is a publicly listed company that manufactures and markets generic pharmaceutical products all over the world. Alembic’s state of the art research and manufacturing facilities are approved by regulatory authorities of many developed countries including the US FDA. Alembic is one of the leaders in branded generics in India.
Written by Manideep Appana
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