Synopsis: This pharma inventory rose 7% submit robust Q2 numbers with 16% income progress and 26% EBITDA progress. Robust US / Ex-US generics efficiency, regular India branded enterprise and continued R&D focus & ESG long run targets strengthened optimism.
This firm is within the enterprise of growth, manufacturing, and advertising of Prescribed drugs merchandise i.e. Formulations and Energetic Pharmaceutical Components is now within the focus after its board authorised Q2 outcomes with EBITDA progress of 26%.
With market capitalization of Rs. 18,654 cr, the shares of Alembic Pharma Ltd are closed at Rs. 960.10 per share, elevated 7% in right now’s market session making a excessive of Rs. 998, from its earlier shut of Rs. 924.30 per share.
YoY efficiency
Income from operations are up by 16% from Rs. 1648 cr in Q2FY25 to Rs. 1910 cr in Q2FY26. Internet revenue grew by 20% from Rs. 153 cr to Rs. 184.7 cr. EBITDA up by 26% at Rs. 325 cr. EBITDA margin raised from 16% to 17%, PAT margin additionally raised from 9% to 10% over the identical interval.
QoQ efficiency
Income from operations are up by 12% from Rs. 1711 cr in Q2FY25 to Rs. 1910 cr in Q2FY26. Internet revenue grew by 20% from Rs. 154 cr to Rs. 184 cr. EBITDA margin stands flat at 17%, PAT margin raised from 9% to 10% over the identical interval.
Shaunak Amin, MD of Alembic Pharma mentioned that the corporate has delivered robust Q2 efficiency with 16% progress by specializing in profitability and disciplined execution.
He talked about that Alembic continues to spend money on R&D (round 10% of income) to construct future progress merchandise, particularly in high-value complicated segments like injectables, peptides and oral medication. He additionally added that the current acquisition of Utility Therapeutics on this quarter will assist Alembic enter the branded medication area within the US market.
Operational Highlights
Alembic’s India branded enterprise grew by 5% YoY this quarter and generated Rs. 639 crore income. Progress was primarily led by gynaecology, eye care and animal well being classes. Their cough & chilly medication portfolio additionally carried out nicely in keeping with the market. The corporate additionally launched 2 new branded merchandise throughout this quarter to strengthen its India portfolio.
Within the worldwide enterprise, US generics delivered robust 21% progress to Rs. 566 crore with 3 new launches throughout the quarter. The ex-US worldwide generics enterprise additionally did very nicely, rising 31% to Rs. 392 crore. Alembic moreover obtained 6 extra ANDA approvals throughout this quarter taking its cumulative ANDA approvals to 226, which is able to assist future world launches and scale.
Alembic Pharma reported robust income progress throughout segments. In Q2FY26, complete income stood at Rs. 1,910 crore, up 16% YoY from Rs. 1,648 crore, pushed by India formulations up 5%, US up 21%, Ex-US up 31% and API up 15%.
Targets set by the corporate
Alembic has set clear ESG targets the place the corporate goals to turn into Internet Zero by 2050, flip water impartial by 2027 and plant 50,000 timber by 2027. On the surroundings entrance, Alembic is among the many prime 10 pharma firms in India with authorised SBTi emission targets and has taken a number of steps like putting in a 24 MW photo voltaic plant, lowering water consumption by 20%, recycling 81% of its water, growing recharge wells, planting 25,000+ timber and lowering landfill waste by 16%.
The corporate reported zero fatalities, improved security tradition, obtained Nice Place to Work certification for the third straight 12 months and its CSR initiatives have impacted over 2.44 lakh beneficiaries. On governance, it has strengthened provider code of conduct, introduced ESG based mostly requirements for distributors (27% already assessed), and initiated a full organizational threat evaluation to enhance transparency and accountable operations.
Concerning the firm
Alembic Prescribed drugs Restricted, a vertically built-in analysis and growth pharmaceutical firm, has been on the forefront of healthcare since 1907. Headquartered in India, Alembic is a publicly listed firm that manufactures and markets generic pharmaceutical merchandise everywhere in the world. Alembic’s cutting-edge analysis and manufacturing amenities are authorised by regulatory authorities of many developed international locations together with the US FDA. Alembic is without doubt one of the leaders in branded generics in India.
Written by Manideep Appana
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