Alembic Pharmaceuticals (APLLTD) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 11% year-over-year to INR 1,876 crore, driven by volume expansion, new launches, and growth in next year markets, with Ex-US Generics leading at 36% growth.

• Gross margin for the quarter was 72%, down from 74% last year, but within the targeted 70%-75% range.

• EBITDA before R&D and exceptional items rose 20% year-over-year to INR 464 crore, representing 25% of revenue; EBITDA margin for Q3 FY26 was 16%.

• Profit after tax before exceptional items increased 21% year-over-year to INR 168 crore; reported PAT was down 4% due to a one-time INR 42 crore provision for labor code changes.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025 were approved, with statutory auditor review reports issued without qualification.

Financial highlights

• Q3 FY26 revenue: INR 1,876.31 crore (+11% YoY); nine-month revenue: INR 5,497.18 crore (+12% YoY).

• R&D expenses for the quarter rose 33% year-over-year to INR 165 crore, now at 9% of revenue.

• Net working capital at INR 2,944 crore, stable versus September; net debt declined to INR 1,213 crore.

• Other income for the quarter was INR 15.5 crore, mostly from Forex gains.

• Earnings per share (consolidated) for Q3 FY26 was ₹6.76.

Outlook and guidance

• India business expected to return to market growth rate by Q1 of the next fiscal year, driven by operational execution.

• U.S. business projected to grow 10-12% for the full year, with mid-teens growth possible in FY27-28.

• US Branded business to launch Pivya in Q4, aiming to expand branded drug footprint.

• R&D spend to remain at 8-9% of revenue.

• The company continues to monitor regulatory changes, especially regarding the new Labour Codes.