This article first appeared on GuruFocus .
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Revenue:INR 1,876 crores for the quarter, up 11% year-over-year.
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Gross Margin:72% for the quarter, compared to 74% in the previous year.
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EBITDA before R&D:INR 464 crores, representing 25% of revenue, a 20% year-over-year growth.
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R&D Expenses:INR 165 crores for the quarter, a 33% increase year-over-year.
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Profit Before Tax:INR 205 crores, a 15% year-over-year increase.
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Profit After Tax:INR 168 crores, a 21% year-over-year increase before exceptional items.
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Net Working Capital:INR 2,944 crores.
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Net Debt:INR 1,213 crores, marginally declined from the previous quarter.
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India Branded Business Revenue:INR 625 crores, a 6% year-over-year growth.
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ROW Markets Growth:36% growth, reflecting strategic geographic expansion.
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U.S. Business Growth:6% growth, supported by higher volumes and new launches.
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ANDA Filings:1 filed during the quarter, cumulative filings at 270.
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R&D Investment:Approximately 9% of revenue.
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U.S. Approvals:7 approvals received, 2 products launched during the quarter.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue for the quarter grew by 11% year-over-year to INR 1,876 crores, driven by volume expansion, new product launches, and increased traction in ex-U.S. markets.
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EBITDA before R&D expenses and exceptional items stood at INR 464 crores, representing 25% of revenue, reflecting improved operating leverage and prudent management of discretionary spending.
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Profit before tax for the quarter grew by 15% year-on-year to INR 205 crores, indicating underlying revenue growth and margin improvement.
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The U.S. business grew by 6%, supported by higher volumes and new launches, despite pricing challenges.
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Alembic Pharmaceuticals Ltd ( BOM:533573 ) received 7 approvals in the U.S. and launched 2 approved products during the quarter, with plans to launch 4 to 5 more products in the fourth quarter.
Negative Points
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Gross margin decreased to 72% from 74% in the previous year, primarily due to changes in product mix and pricing challenges.
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Pricing pressure in international generics, particularly in the U.S. and API business, persisted during the quarter.
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The India Branded Business growth was 6% year-on-year, which is below the market growth rate.
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A one-time provision of INR 42 crores was recognized towards employee benefits due to changes under the new labor code, impacting reported profit after tax.
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The launch of the branded product Pivya in the U.S. is expected to impact near-term profitability due to initial operational expenses.
Q & A Highlights
Q: When do you anticipate Alembic's India growth to catch up with the market growth rate? A: Shaunak Amin, Managing Director, stated that the India business is complex with many moving parts. They expect to align with the market growth rate by Q1 of the next financial year, driven by operational execution rather than new product launches.
Q: What are your expectations for the upcoming launch of Pivya in the U.S., especially regarding reimbursement challenges? A: Pranav Amin, Managing Director, Executive Director, mentioned that while success is relative, they aim to build incremental business. The product is positioned well in terms of efficacy and pricing. The U.S. team is working on reimbursement and co-pays, and the launch is on track for Q4.
Q: When will the new contracts in the injectable and onco space start impacting your U.S. business numbers? A: Pranav Amin indicated that the U.S. business is already on a growth track, expecting a 10% to 12% growth for the full year. The impact of new contracts will be seen in the coming quarters, with interesting launches planned for Q4.
Q: Will R&D expenses remain at the current level next year? A: G. Krishnan, CFO, stated that while specific guidance for next year will be provided later, R&D expenses are expected to remain around 8% to 9% of total revenue, consistent with previous years.
Q: What challenges are you facing in the domestic business, and is there a need to expand the field force? A: Shaunak Amin explained that the domestic business has not been underfunded, but they were conservative regarding doctor spend. They are not planning large expansions in the field force but will consider it if operational expectations are met.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
