Alembic Pharmaceuticals (APLLTD) Q4 25/26 earnings summary

Executive summary

• FY 2026 saw steady growth despite pricing pressure, competition, and supply chain volatility, with execution, portfolio choices, and cost discipline driving outcomes.

• Achieved 4% year-over-year revenue growth in Q4 FY26, reaching INR 1,848 crores, and 10% full-year revenue growth to INR 7,344.90 crores.

• Net profit for FY26 grew 16% to INR 675 crores, with Q4 net profit up 29% year-over-year to INR 203 crores.

• India business grew 5% for the year, led by specialty therapies and animal healthcare; US and API segments posted growth, while Ex-US Formulation saw a slight decline.

• R&D investment rose 39% year-over-year, now at 11% of revenue, supporting pipeline expansion.

Financial highlights

• Q4 FY26 revenue from operations was INR 1,848 crores, up 4% year-on-year; full year revenue reached INR 7,344.90 crores, up 10% from FY25.

• Q4 EBITDA before R&D was INR 455 crores, up 8% year-on-year, with core margins at 25%.

• Gross margin for Q4 improved to 73%.

• R&D spend for Q4 was INR 209 crores (11% of revenue), up from INR 151 crores (9%) last year.

• FY26 net profit reached INR 675 crores, up 16% year-over-year; ROCE for FY26 stood at 14%.

Outlook and guidance

• FY 2027 expects low double-digit consolidated top-line growth, with India business aiming to match market growth.

• International generics projected to grow in low to mid-teens; API business to grow high single to low double digits.

• R&D investments guided at INR 750–800 crores, focusing on NCE-1, first-to-file, and day one molecules.

• Margin improvement expected as Pivya drag subsides and core business strengthens.

• Dividend payout increased to ₹12 per share for FY26, reflecting confidence in future cash flows.