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Informist, Tuesday, Aug. 4, 2026

 

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--Alembic Pharma: Gross debt was around INR 16 bln on Jun 30
--Alembic Pharma: Expect API business revenue to grow 10% on year in FY27
--Alembic Pharma:Q1 gross margin hit due to unfavourable pdt mix, W Asia war
--Alembic Pharma: Expect EBITDA margin to be in high teen in FY27
--Alembic Pharma: US sales growth in FY27 seen better than earlier expected
--CONTEXT: Comments by Alembic Pharma mgmt in a post-earnings analyst call
--Alembic Pharma: Focused on chronic therapies to drive India sales growth

 

By Narayana Krishna and Gunjan Rajput

 

HYDERABAD/NEW DELHI - Alembic Pharmaceuticals Ltd. is expecting sales of its formulations to be better than expected in the US in 2026-27 (Apr-Mar), driven by high-value speciality products and new launches, the company's management said in a post-earnings analysts' conference call.

 

The company is targeting to launch over 15 new products in the US in FY27, some of these have a high potential to drive growth, the company said. Given the improved hope for the US market, the company is also revising its consolidated revenue growth guidance for FY27 to "mid- to high-teens from low- to mid-teens", the management said without giving any specific number.

 

The company's consolidated net profit for the June quarter rose 12% on year to INR 1.73 billion. Revenue from operations for the quarter was INR 21.50 billion, up 26% on year.

 

"...the first quarter has provided us with greater visibility into the trajectory of the business, particularly the US generic segment. At the beginning of the year, we had indicated that the US generics could grow in the low- to mid-teens. Based on the performance and the trends we're seeing in Q1, the launch outlook and current volume trends, we now expect the US business to grow mid- to high-teens in the year, subject to normal market conditions and continued execution,” Alembic Pharma management said.

 

Alembic Pharma reported a 49% year-on-year rise in its US sales for the June quarter, led by broad-based contribution of seven new products that the company launched along with market share expansion of existing products. The key contributor for the growth was generic Pivya, used to treat urinary tract infections. 

 

Alembic Pharma management remains cautious on its earnings before interest, tax, depreciation, and amortisation margin guidance for FY27 and said it would be in the high teens. Operating leverage that the company is projecting could help improve the margins going forward, though there are some issues which may offset the impact, the company said.

 

"The EBITDA margin will probably reflect the operating leverage that we have seen in the first quarter. If I look at the underlying business, the ex-US branded business, we have seen operating leverage playing out. Like we guided in the Q4 results last year when we spoke in May, we said that there will be good operating leverage that will play out on the core business, which will partially get offset by the US branded...We hold on to that view at this point of time. We should see a similar trajectory of operating margin getting maintained at an overall level as we see operating leverage playing out", the company said.

 

For June quarter, Alembic Pharma reported its consolidated EBITDA margin at 16% against 17% a year ago. Alembic Pharma management said gross margins were impacted to some extent in the June quarter due to an unfavourable product mix in some regions as well as cost escalations due to the West Asia war. 

 

The company said Alembic Pharma is focused on the chronic therapy segment in India to drive growth in the current fiscal. The company is expecting 10% year-on-year sales growth in its active pharmaceutical ingredients business in FY27. As of Jun. 30, the company’s gross debt was at INR 16 billion.

 

On Tuesday, shares of Alembic Pharma closed 0.5% higher at INR 809.40 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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