Alembic Pharmaceuticals (APLLTD) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew 3% year-over-year to INR 1,648 crores (INR 16.48 Bn), with EBITDA up 18% to INR 257 crores (15.6% margin) and net profit up 12% to INR 153 crores.

• EPS for the quarter was INR 7.79, up from INR 6.95 in the prior year period; H1 FY25 EPS was INR 14.64.

• Sikkim plant operations, disrupted by flash floods, fully resumed in February 2024; insurance claims of INR 83.61 crores were received, with INR 12.87 crores recognized as exceptional income.

Financial highlights

• India branded business grew 6% to INR 609 crores, with strong specialty therapy growth; animal health business grew 20% for the quarter.

• U.S. generics revenue grew 5% to INR 467 crores; ex-U.S. generics rebounded with 18% growth.

• API business declined 15% due to price erosion and loss of key accounts.

• Gross margin maintained at 74%, attributed to product mix and new launches.

• R&D expense was INR 133 crores (8% of sales) for the quarter.

Outlook and guidance

• H2 expected to be much stronger, driven by back-ended launches in the U.S. and ROW markets.

• High single-digit growth expected in domestic business for H2.

• API business anticipated to recover towards the end of the year or next year.

• Strategic roadmap includes expanding presence in MENA, launching new products, and leveraging technology upgrades.

• R&D spend for FY25 projected at INR 500–520 crores, with 70% on formulations and 30% on API.