APLLTD - Alembic Pharma

📊 NSE: APLLTD 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/13/2025 18:07

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 7% YoY to INR 6,672 Cr in FY25. For H1 FY26, revenue increased 13% YoY to INR 3,621 Cr. The India Branded Business grew 5% YoY in Q2 FY26 to INR 639 Cr. International generic business showed healthy growth, while the API business experienced a decline in FY25 but is expected to recover.

Geographic Revenue Split

The company has a significant presence in the US market, which is expected to grow by at least 10% per annum over FY26-FY27. Other key markets include Canada, Chile, the European Union, and Australia, with strategic alliances strengthened in Australia and Europe through new product launches.

Profitability Margins

Gross margins are guided to remain in the 70-75% range. The PAT margin stood at 9% in FY25. Operating margins are expected to improve to 16-17% over the medium term as capacity utilization of new facilities increases.

EBITDA Margin

EBITDA margin improved to 16% in FY25 from 15% in FY24, representing a 10% growth in absolute EBITDA to INR 1,053 Cr. H1 FY26 EBITDA margin (post-R&D) was 17% (INR 613 Cr), reflecting improved capacity utilization and revenue growth.

Capital Expenditure

The company has completed its major capital expenditure cycle for three new manufacturing facilities. Annual cash accruals of INR 700-800 Cr are expected to be sufficient to cover routine maintenance capex and working capital requirements.

Credit Rating & Borrowing

Credit ratings are maintained with a 'Stable' outlook. Total debt increased to INR 1,258 Cr as of March 31, 2025, from INR 513 Cr in the previous year due to higher working capital needs. Interest costs for Q2 FY26 rose to INR 76 Cr from INR 71 Cr YoY.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (APIs) and specialty chemicals used in complex chemistry formulations; specific chemical names not disclosed.

Capacity Expansion

The company has three new manufacturing facilities targeted at the US market, all of which are USFDA approved. Commercial operations began in H2 FY23 and FY24. Current focus is on ramping up utilization to achieve economies of scale.

Raw Material Costs

Raw material costs are managed through a focus on high-margin projects and cost optimization measures to maintain gross margins above 70%.

Manufacturing Efficiency

Capacity utilization is currently sub-optimal at new facilities, resulting in an overhead absorption impact of approximately INR 150 Cr in FY25, which constrained profitability.

📈 Strategic Growth

Expected Growth Rate

10-11%

Growth Strategy

Growth will be driven by ramping up three new USFDA-approved facilities, launching 15-20 new products in the US market in FY26, and focusing on complex chemistry and specialty therapies like Entresto and Pivya. The company is shifting its portfolio mix toward higher-margin specialty products to enhance profitability.

Products & Services

Differentiated generics, specialty therapies, branded formulations, and Active Pharmaceutical Ingredients (APIs).

Brand Portfolio

Alembic Pharmaceuticals.

New Products/Services

Planned launch of 15-20 products in the US market in FY26. Recent launches include Pivya and Entresto generics.

Market Expansion

Expanding geographic presence in the US, Canada, Chile, EU, and Australia.

Strategic Alliances

Strategic alliances with partners in Australia and Europe for new product launches; acquisition of Utility Therapeutics to support the Pivya launch.

🌍 External Factors

Industry Trends

The industry is seeing growing penetration of health insurance and a shift toward complex generics. Alembic is positioning itself by investing in R&D for difficult-to-formulate molecules that generate superior value.

Competitive Landscape

Intense competition in the US generic space and domestic acute therapy segments.

Competitive Moat

Moat is built on a strong ANDA pipeline (220 cumulative approvals), USFDA-approved manufacturing infrastructure, and expertise in complex chemistry. These are sustainable due to high entry barriers in specialty generics.

Macro Economic Sensitivity

Margins are sensitive to inflation-driven costs and pricing pressure in international markets.

Consumer Behavior

Increased demand for specialty therapies and chronic disease treatments.

Geopolitical Risks

Exposure to regulatory changes in India and overseas markets (US, EU, Australia).

⚖️ Regulatory & Governance

Industry Regulations

Subject to USFDA, European Medicines Agency (EMA), and TGA Australia inspections. Domestic operations are impacted by the Drug Pricing Control Order (DPCO).