ALIVUS - Alivus Life

📊 NSE: ALIVUS 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/13/2025 18:08

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 16% YoY to INR 588 Cr in Q2 FY26. Non-GPL business grew 39.7% YoY to INR 444.3 Cr, while the GPL (Glenmark Pharma) segment declined 23.9% YoY to INR 143.7 Cr due to inventory rationalization. Generic API revenues grew 15.3% YoY and CDMO revenues grew 15.8% YoY.

Geographic Revenue Split

Regulated markets contributed 81% of total revenue in Q2 FY26, driven by robust performance in the Non-GPL business across LATAM, Japan, and Europe. Emerging markets and ROW also contributed to broad-based growth.

Profitability Margins

Gross margins stood at 57.7% in Q2 FY26, up 210 bps YoY. PAT margins were 22.1%, up 330 bps YoY. H1 FY26 PAT stood at INR 252 Cr with a 21% margin.

EBITDA Margin

EBITDA margin for Q2 FY26 was 33%, an improvement of 480 bps YoY, driven by a better product mix and successful new launches. EBITDA reached INR 194 Cr, up 35.7% YoY.

Capital Expenditure

The company has a Board-approved capex of INR 600 Cr, including a carryover of INR 190 Cr for FY25. Capex for H1 FY26 was INR 11.3 Cr (INR 113 Mn), with INR 6.1 Cr (INR 61 Mn) spent in Q2.

Credit Rating & Borrowing

The company remains net debt-free with cash and cash equivalents (including short-term investments) of INR 652.6 Cr as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Not specifically disclosed by name, but described as a 'benign environment' where raw material prices have declined alongside finished good prices.

Capacity Expansion

Capacity expansion initiatives are progressing at Solapur, Ankleshwar, and Dahej. Asset turnover ratio is currently 2.4 times, trending slightly lower due to the ongoing capex cycle.

Raw Material Costs

Raw material costs have decreased, contributing to gross margin expansion of 210 bps YoY to 57.7%. The company manages downward pricing pressure on mature APIs through volume increases and lower input costs.

Manufacturing Efficiency

Asset turnover is 2.4x. Efficiency is reinforced by a robust pipeline of new launches and operational improvements, sustaining margins at 30% despite the absence of PLI benefits.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be achieved through high single-digit revenue expansion driven by a stronger H2 performance, recovery in the GPL business, ramp-up of CDMO projects, and a steady launch of 4 new molecules per year in the Japan market.

Products & Services

Active Pharmaceutical Ingredients (APIs) for CVS, CNS, and Chronic therapies, along with CDMO services for NCE-1 opportunities.

Brand Portfolio

ALIVUS (formerly Glenmark Life Sciences Limited).

New Products/Services

The high potent API portfolio has 26 products in the active grid with a $66 billion addressable market; 10 products are already validated.

Market Expansion

Targeting regulated markets (81% of revenue) with specific focus on Japan, LATAM, and Europe through new product launches.

Strategic Alliances

Ramping up CDMO projects with various partners to drive overall business growth.

🌍 External Factors

Industry Trends

The industry is shifting toward patient-centric models, sustainability, and technology adoption. Innovation and government support are key drivers despite rising regulatory pressures.

Competitive Landscape

Increasing competition in the global pharmaceutical industry and pricing pressure on mature molecules.

Competitive Moat

Moat is built on high talent intensity (2,200 employees) and USFDA-inspected manufacturing sites (Ankleshwar, Dahej, Mohol) which allow access to regulated markets.

Macro Economic Sensitivity

Sensitive to global pharmaceutical demand and pricing environments for commoditized APIs. Benign pricing environments require volume growth to sustain absolute profitability.

Consumer Behavior

Strong demand for chronic therapies, which contributed 69% to the top line in Q2 FY26.

Geopolitical Risks

Subject to changes in political conditions in India and abroad, as well as foreign exchange control regulations.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to USFDA standards. Ankleshwar facility received one 483 observation in January 2025 (resolved with VAI status); Dahej had zero observations in May 2025 (NAI status).