Alembic Pharmaceuticals (APLLTD) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue grew 10% year-on-year to INR 1,711 crores, with net profit up 15% to INR 154 crores and EBITDA up 20% to INR 288 crores, reflecting strong operational performance despite pricing pressure in U.S. generics and API.

• India Branded Business, US Generics, and Ex-US Generics segments posted double-digit growth, while API business remained flat due to price erosion.

• Gross margin improved to 76.2% from 74.8% last year, aided by product mix and cost improvement programs.

• Strategic tech initiatives, including iPad-based engagement, Salesforce CRM, and AI-powered support, are enhancing competitiveness and productivity.

• EPS for the quarter was INR 7.85, up from INR 6.84 last year.

Financial highlights

• EBITDA margin improved to 17% in Q1 FY26 from 15% a year ago; net profit margin reached 9%.

• R&D expenses increased 26% year-on-year to INR 145 crores, now at 8% of revenue.

• Profit before tax grew 21% to INR 191 crores.

• Working capital remained stable; better collections offset by higher inventory.

• Debt-equity ratio (consolidated) increased to 0.22 from 0.12 year-over-year.

Outlook and guidance

• U.S. and ROW businesses projected to grow 10-15% for the full year, with several new launches planned.

• India business expected to return to double-digit growth within months as execution gaps are addressed.

• API business to remain muted in the near term due to industry-wide pricing pressure, with gradual recovery expected.

• Pipeline includes 15+ product launches in the US expected in FY26, with new facilities contributing to future growth.

• Continued focus on cost efficiency and R&D investment to drive competitiveness.