Alembic Pharmaceuticals reported a solid Q3 FY’26, with revenue growing 11% YoY to INR 1,876 crores, driven by volume expansion and ex-U.S. market traction. EBITDA before R&D grew 20% YoY to INR 464 crores (25% margin). The company is proceeding with the U.S. branded launch of Pivya in Q4 and remains committed to R&D investment, which stood at 33% YoY growth for the quarter.
Q3 FY’26 Financial Performance Highlights
Alembic Pharmaceuticals hosted its Q3 FY’26 Earnings Conference Call on February 5, 2026, detailing robust performance across key segments. The company reported that revenue for the quarter grew by 11% year-over-year, reaching INR 1,876 crores. This growth was characterized by broad-based expansion in volumes, new product launches, and increased traction in ex-U.S. markets.
The Gross margin for the quarter stood at 72%, aligning with the comfortable operating range of 70% to 75%. EBITDA before R&D expenses and exceptional items reached INR 464 crores, representing 25% of revenue, marking a year-on-year growth of about 20%. Profit after tax (before exceptional items) grew 21% YoY to INR 168 crores.
The company noted a one-time provision of INR 42 crores towards employee benefits due to New Labour Code changes, which did not impact operating performance.
Nine-Month Results Summary
For the 9-month period ended December 2025, revenue grew 12% YoY to approximately INR 5,500 crores. EBITDA before R&D for this period was INR 1,391 crores (25% of revenue), resulting in a 25% YoY growth. PAT before exceptional items grew about 22% to INR 505 crores.
Segmental Business Review
India Branded Business
Mr. Shaunak Amin reported that the India Branded business achieved a 6% year-on-year growth, reaching INR 652 crores. Segments like Gynaecology, Ophthalmology, and animal healthcare showed accelerating performance. While acknowledging tepid growth historically, management expects the India business growth to align with the market growth rate in Q1 of the coming financial year, driven by operational execution.
International and U.S. Business
Mr. Pranav Amin highlighted that performance in international (ROW) markets was strong, growing by 36% due to strategic geographic expansion. The U.S. business grew 6%, supported by higher volumes and new launches, despite ongoing pricing pressure.
The company filed one ANDA this quarter, bringing cumulative filings to 270, with 7 U.S. approvals received. The management expects the U.S. business to grow between 10% to 12% on a full-year basis.
U.S. Branded Product Launch: Pivya
Alembic is on track to launch its first branded product in the U.S., Pivya, an oral antibiotic for uncomplicated UTIs, in February 2026 (Q4). Management noted that while the launch may impact near-term profitability due to costs (MR expenses and royalty), they are confident in capturing market share over the next 12 to 18 months. This launch represents a strategic shift towards the branded business.
R&D Investment Outlook
R&D expenses for the quarter increased 33% YoY to INR 165 crores, aligning with the full-year guidance of INR 600 crores to INR 650 crores. This represented approximately 8% to 9% of total revenue. Management indicated that R&D spend is expected to remain in this 8% to 9% range generally in the near term.
Closing Remarks on Future Growth
On the U.S. trajectory, management anticipates strong growth in the mid-teens (10% to 15%) in the ’27 and ’28 period, supported by complex opportunities like injectables and ophthalmics. Regarding margins, management stated that margin expansion from better capacity utilization should cushion the initial expenses associated with the Pivya launch.
Source: BSE
