Shares of Alembic Pharmaceuticals Ltd. surged by 20% to reach the upper circuit limit of Rs 965 in Wednesday's trading session. This significant jump followed the company's announcement of strong September quarter (Q2 FY27) financial results, showcasing impressive growth across key metrics.
Strong Financial Performance
The pharmaceutical major reported a consolidated profit after tax (PAT) of Rs 335 crore for the quarter, marking an 81% increase year-on-year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a substantial rise of 78% year-on-year, reaching Rs 578 crore, with an EBITDA margin of 22%. Revenue from operations grew by 36% year-on-year, totaling Rs 2,603 crore during the quarter.
Segmental Growth Drivers
Alembic Pharmaceuticals' diverse business segments contributed significantly to the overall growth:
- India Branded Business: Revenue increased by 14% year-on-year to Rs 725 crore. The company highlighted robust growth in its gynaecology, cardiology, gastroenterology, and ophthalmology segments.
- Animal Health Business: This segment continued its growth momentum, recording a 23% increase in revenue during the quarter.
- International Business: US Formulations revenue surged by an impressive 77% year-on-year to Rs 1,003 crore, driven by three new product launches in the US market. The Ex-US business also reported a 12% growth in revenue, reaching Rs 440 crore.
- API Business: The Active Pharmaceutical Ingredient (API) business segment reported a 39% year-on-year growth in revenue, reaching Rs 436 crore.
During the quarter, Alembic Pharmaceuticals also received one abbreviated new drug application (ANDA) approval, bringing its cumulative ANDA approvals to 245.
Management Outlook
Pranav Amin, Managing Director at Alembic Pharmaceuticals, commented on the results, stating, "We delivered another quarter of strong, broad-based growth and improved profitability, reflecting consistent execution across markets. Our US business delivered an exceptional performance, driven by strong volume growth and new launches, while India regained momentum as Ex-US and API continued their growth trajectories."
Amin further added, "In India Branded, improving momentum in chronic therapies is strengthening the quality of growth, while in US Branded, we are encouraged by the traction building across our existing portfolio. Following a strong first half, we are well positioned to sustain growth and create long-term value for all our stakeholders."