Alembic Pharmaceuticals reported a 16% year-on-year revenue growth in Q2 FY26, reaching INR 1,910 crores. Growth was driven by higher volumes and new product launches. EBITDA before R&D expenses stood at INR 503 crores, representing a 26% margin. The company completed the acquisition of Utility Therapeutics, marking its entry into the US branded drugs market. They maintain focus on complex injectables and plan to launch 4-5 products in Q3 and Q4.
Financial Performance
Alembic Pharmaceuticals announced strong financial results for Q2 FY26:
- Revenue grew by 16% year-on-year to INR 1,910 crores.
- EBITDA before R&D expenses was INR 503 crores, with a 26% EBITDA margin.
- Gross margin was 73% for the quarter.
- R&D expenses increased by 41% year-on-year to INR 187 crores.
- Profit before tax grew by 34% year-on-year to INR 225 crores.
Segmental Performance
Key highlights from different segments include:
- India Branded Business delivered revenue of INR 639 crores, a 5% year-on-year growth.
- International Business saw a 31% growth in rest of world markets.
- US business grew by 21%.
- API business grew by 15%.
Strategic Initiatives
Alembic is actively pursuing several strategic initiatives to drive future growth:
- Completed the acquisition of Utility Therapeutics for entry into the US branded drugs market with Pivya.
- Filed 2 ANDAs during the quarter, with cumulative filings at 269.
- Received 6 approvals and 1 tentative approval.
- Launched 3 products in the US.
Future Outlook
The company expects to launch 4-5 products in both Q3 and Q4 of this financial year. R&D investment remains a priority, with a focus on complex injectables and high-value areas. They aim to improve EBITDA margins to 18%-19% in the next year and to 20% in the coming years with better facility utilization and sector growth.
Utility Therapeutics and Pivya Launch
Alembic’s acquisition of Utility Therapeutics marks its entry into the branded segment in the US, initially focusing on women’s health. The company plans a phased approach to build out a field force to promote Pivya, a product targeting urinary tract infections.
Azithral Sales
Azithral sales are stabilizing, with an expected upward trend. Animal health continues to outperform, and Gynecology is also performing well.
Source: BSE
