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Informist, Monday, Aug. 4, 2025

By Rizwan Ali

MUMBAI – Alembic Pharmaceuticals Ltd. is expected to post a robust growth in consolidated net sales and net profit for the June quarter. The likely growth in the company's sales is supported by new product launches and an increase in demand for generic medicines in the international market, brokerages tracking the company said.

Alembic Pharmaceuticals is expected to post a consolidated net profit of INR 1.63 billion, up 21% on year and up 4% on quarter, in the June quarter, according to the average of estimates of four brokerages. The highest estimate for net profit is INR 1.71 billion from YES Securities and the lowest estimate is INR 1.55 billion from Motilal Oswal Financial Services Ltd.

The company is expected to post consolidated net sales of INR 17.25 billion in Apr-Jun, up 10% on year but down 2% on quarter, according to the estimates. The highest estimate for net sales is INR 17.48 billion from YES Securities and the lowest estimate is INR 17.08 billion from Motilal Oswal. Alembic Pharmaceuticals is expected to report an earnings before interest, tax, depreciation, and amortisation of INR 2.8 billion, down 2% on year but up 17% on quarter, as per the estimates.

Growth in the company's domestic business is expected to remain flat on year but the recovery in the US market due to launches of new products is driving the revenue growth of the company, Nirmal Bang said. In 2024-25 (Apr-Mar), the company had reported total export revenue of INR 32 billion, with INR 19.5 billion coming from the US market and INR 12.4 billion from the rest of the world. The US market accounted for 61% of the company's total export revenue.

The company launched four new products in the US market in the March quarter of FY25, bringing the total to 163 products that has been commercialised in the US market. There are 15 new product launches in the pipeline in FY26. The ongoing capacity expansion will help the company to meet the rising demand for generic medicine in the international markets.

Alembic Pharmaceuticals' EBITDA margin is expected to rise to 17.8%, up 260 basis points on year, Deven Choksey Research said. The expansion of the company's EBITDA margins is led by improved operating leverage, favourable product mix, and higher capacity utilisation. The adjusted net profit margin of the company is expected to increase to 9.9%, up 127 bps on year and 102 bps on quarter. The growth in adjusted net profit margin is due to the strong operating performance of the company, Deven Choksey said.

On Monday, shares of Alembic Pharma closed at INR 967.20, up marginally, on the National Stock Exchange. The shares have risen 9% since the company announced its March quarter earnings. The shares are trading 26% down from their all-time high of INR 1,303.90, which was hit on Oct. 9, 2024. Of the five brokerage reports available on the stock with Informist, four have a 'hold' recommendation with an average target price of INR 924. The company will announce its June quarter earnings Tuesday.

Following are the Apr-Jun earnings estimates, in INR million, for Alembic Pharmaceutical Ltd., based on reports from four brokerages in the descending order of the net profit:

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Edited by Tanima Banerjee

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