Alembic Pharma Q1 FY27 Results (NSE: APLLTD)
Signal: Growth reaccelerated
The read
Revenue growth accelerated sharply to 25.7% YoY, the highest in five quarters, driven by a strong US generic subsidiary performance, but group EBITDA margin only inched up to 16.1% (+10bps YoY) as input costs and other expenses rose. The standalone business posted a stellar OPM of 19.3% (+870bps YoY), highlighting that group profitability was dragged by a subsidiary net loss of ~₹26 Cr. PAT grew 12.1% YoY, with no one-off items. Overall, a strong top-line quarter with margins still in recovery phase.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,149.77 Cr | 25.7% | -70.7% |
| EBIT | ₹249.08 Cr | 16.4% | |
| Net profit | ₹173.07 Cr | 12.1% | |
| EPS | ₹8.8 | 12.1% | |
| EBIT margin | 16.1% |
P&L walk
Revenue surged 25.7% YoY to ₹2,149.77 Cr, the highest growth in 5 quarters, driven by strong US generic sales (subsidiary Alembic Pharmaceutical Inc contributed ~₹735 Cr revenue). Gross margin compressed as cost of materials consumed rose to 24.1% of revenue vs 25.2% a year ago, but other expenses grew faster (+20.8% YoY), limiting EBITDA margin expansion to just 10bps YoY at 16.1% (₹346.79 Cr, +20.5% YoY). PAT grew 12.1% YoY to ₹173.07 Cr, tracking EBITDA growth, with other income/exceptional items clean. EPS ₹8.8 (+12.1% YoY) matched PAT growth.
Key positives
- Consolidated revenue grew 25.7% YoY to ₹2,149.77 Cr, accelerating sharply from +4.4% in Q4FY26 and +10.8% in Q3FY26.
- Standalone OPM expanded 870bps YoY to 19.3%, reflecting strong domestic business performance and cost control.
- EPS grew 12.1% YoY in line with PAT, no dilution.
- Earnings quality clean: other income & exceptional items below 20% of PBT.
Key concerns
- Group EBITDA margin expanded only 10bps YoY to 16.1%, as input costs and other expenses grew faster than revenue.
- Alembic Pharmaceutical Inc (US subsidiary) reported a net loss of ~₹25.93 Cr, dragging consolidated PAT below standalone PAT.
- Sequentially, revenue fell 70.7% QoQ and PAT fell 74.2% QoQ, reflecting the expected seasonality from Q4 (annual high) to Q1.
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