Alembic Pharmaceuticals (APLLTD) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 16% year-on-year to INR 1,910 crores, with net profit up 20% to INR 185 crores, driven by strong performance across India Branded, US Generics, Ex-US Generics, and API segments.

• EBITDA before R&D rose 32% year-on-year to INR 503 crores, with margin improving to 26% from 23% last year; EBITDA margin for Q2 FY26 was 17%.

• R&D investment increased 41% year-on-year to 10% of revenue, supporting accelerated product filings and approvals.

• Acquisition of UTILITY Therapeutics completed, marking entry into U.S. branded drugs with PIVYA for urinary tract infections.

• The Board approved unaudited financial results for the quarter and half year ended 30 September 2025.

Financial highlights

• Half-year revenue up 13% year-on-year to INR 3,621 crores; EBITDA before R&D at INR 927 crores (26% margin), up 28%.

• Net profit margin for Q2 FY26 was 9.67%, with EPS at ₹9.40, up from ₹7.79 in Q2 FY25.

• Net working capital increased to INR 2,921 crores from INR 2,734 crores in March 2025.

• Net debt rose to INR 1,280 crores from INR 967 crores in June 2025, reflecting acquisition and working capital funding.

• Interest cost increased to INR 76 crores from INR 71 crores sequentially.

Outlook and guidance

• Net debt (excluding PIVYA launch) expected to gradually reduce in FY 2027 as new products and facilities ramp up.

• R&D spend guidance maintained at INR 600-650 crores for the year, with future spend expected at 8-10% of revenue.

• EBITDA margin expected to improve to 18-20% over the next couple of years as utilization and product launches increase.

• Pipeline includes 10+ product launches in US Generics for H2 FY26.

• PIVYA launch in late Q4 FY 2026; initial profitability impact expected, with medium- to long-term growth potential.