Alembic Pharmaceuticals (APLLTD) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was ₹2,603.48 crore, up 36% YoY; EBITDA margin expanded to 22.21% from 17.02%, and profit after non-controlling interests rose to ₹335.17 crore from ₹184.71 crore.

• H1 FY27 revenue reached ₹4,753.25 crore, up 31% YoY; profit attributable to shareholders was ₹508 crore, up 50%.

• All businesses recorded double-digit Q2 growth, led by U.S. and API, alongside India chronic momentum and growing U.S. Branded traction.

Financial highlights

• Q2 gross margin was 73.7%, up 70 bps YoY; R&D was 8% of revenue.

• Q2 PBT rose 95% YoY to ₹437.95 crore; EPS was ₹17.05 versus ₹9.40 a year earlier.

• Q2 total income was ₹2,619 crore, up 37%; total expenses rose 29% to ₹2,179 crore.

• H1 consolidated PBT was ₹659.81 crore versus ₹413.82 crore; EPS was ₹25.86 versus ₹17.25.

Outlook and guidance

• FY27 consolidated revenue growth guidance increased to 20%-25%; U.S. business growth is expected up to 40%, API growth at least high teens, and ex-U.S. growth at mid-teens.

• India and ex-U.S. outlooks were unchanged; India branded business targets market-level growth within 2-3 quarters, with acute portfolio recovery expected over coming quarters.

• U.S. Branded is expected to break even by FY27 year-end or H1 FY28; FY28 is expected to have no branded margin drag.

• FY28 U.S. growth of 10%-12% is conditional on launches progressing well; the margin aim is ~20% over FY28-29.

• Continued investment targets product pipelines, complex platforms and specialty segments, including development of the U.S. Branded platform.