India Ratings has upgraded Alivus Life Sciences’s long-term bank loan facilities rating to ‘IND AA’ from ‘IND AA-‘, with a Stable Outlook. The short-term rating is affirmed at ‘IND A1+’. This upgrade reflects Alivus’s healthy revenue visibility, strong EBITDA margins, and a net cash position in FY25. Capacity utilization remains high, benefiting from its association with Glenmark Pharmaceuticals and volume supply contracts extending to FY29.
Rating Upgrade Rationale
Alivus Life Sciences (ALS) has received an upgrade in its long-term rating to ‘IND AA’ with a Stable Outlook, reflecting the company’s strong financial performance and market position. The upgrade is driven by healthy revenue visibility and strong EBITDA margins in FY25. The company’s short-term rating has been affirmed at ‘IND A1+’.
Key Financial Highlights
During FY25-Q1FY26, ALS maintained strong operational performance despite pricing headwinds in the active pharmaceutical ingredient (API) market. The company has demonstrated high capacity utilization (above 95%) despite an 86% increase in capacity between FY22-FY25. Revenue for FY25 reached INR23,869 million.
Strategic Advantages
ALS benefits from its association with Glenmark Pharmaceuticals Limited, with supply contracts extending until FY29. The company is also a part of the Nirma Limited group, enhancing its financial flexibility. The company’s focus on niche and complex portfolios has allowed it to maintain healthy EBITDA margins. As of FY25, it has a portfolio of 165 molecules and a pipeline of 49 new products.
Future Outlook
Despite planned capital expenditures to almost double capacities, ALS is expected to maintain strong credit metrics due to minimal reliance on external funding. The company remains net cash positive and is strategically positioned to capitalize on the growing HPAPI market, which is expected to reach USD45.70 billion by 2030.
Financial Performance Details
In FY25, the company’s EBITDA margins remained healthy at 28.6%. The company’s research and development expenditure stood at INR805 million, accounting for 3.4% of total revenue. As of end-June 2025, ALS filed over 569 drug master filings (DMFs) across various markets. The company had healthy cash reserves of INR5,487 million at the end of FY25.
Source: BSE
