ALIVUS Q2 FY27 Earnings Call: Revenue Rises 16% On New Launches, CDMO To Double In 3-4 Years

ALIVUS held its Q2 FY27 earnings call on October 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Broad-Based Beat with One-Off Support

• Rs.682 Cr revenue, +16% YoY — driven by new product launches and healthy demand across the existing portfolio; performance healthy across Europe, Japan, North America, LATAM and ROW markets.
• Gross margin at 64.4% — up 420 bps QoQ and 670 bps YoY on favorable product mix; EBITDA of Rs.285 Cr (+47% YoY) at 41.8% margin; adjusted EBITDA margin excluding one-time income was ~39.5%.
• PAT of Rs.197 Cr — 28.9% margin, up 390 bps QoQ and 680 bps YoY; H1 FY27 revenue of Rs.1,322 Cr (+11.1% YoY) with EBITDA margin at 39.3%.
• ~Rs.24-25 Cr one-off in Q2 FY27 (per analyst calculation) — two components: high-margin validation supply of a complex product and a one-time income approval from a customer (CFO Tushar Mistry).
• Rs.270 Cr free cash flow — cash and equivalents including short-term investments at Rs.1,012 Cr as of September 30, 2026; company remains net debt-free; Q2 CapEx of Rs.105 Cr (H1: Rs.190 Cr).
• R&D at Rs.27 Cr in Q2 (4% of sales) — H1 FY27 R&D of Rs.51 Cr (3.9% of sales).

Non-GPL Carries Growth; GPL Flat

• Non-GPL grew 20.8% YoY — now 79% of overall revenues; management expects non-GPL to sustain at the ~Rs.500 Cr range over Q3–Q4 FY 2026-2027.
• GPL grew only 1% YoY — management expects GPL to follow its historical trend with a stronger H2 contribution and FY 2026-2027 full-year revenues of around Rs.700-750 Cr.
• Generic API grew 11% YoY — supported by healthy demand across regulated and emerging markets; CVS and CNS therapies each contributed 50% to Q2 top line, with chronic therapies at 67%.
• CDMO revenue of Rs.50 Cr — up 32.3% QoQ and nearly 80% YoY; management cautioned the run-rate is lumpy quarter-to-quarter and should not be extrapolated; business still driven by the existing five projects plus newer FY 2026-2027 additions.
• Over 630 DMF and CEP filings globally as of September 30, 2026; of ~160 US DMFs, 90-100 contribute commercially, with another 60 awaiting patent expiry over a 3-5 year timeframe.
• High-potent API grid: 30 products, $86 bn TAM — 14 validated, 7 in advanced development, 9 in lab development; commercialization expected in a 5-6 year window from late FY28 to FY33-FY34.

Expansion Sustained, But Mix and Crude Are Watch Items

• FY 2026-2027 EBITDA margin guidance of 35-36% reiterated by CFO Tushar Mistry, who characterized GPL as a "good stable margin business" and pushed back on H2 dilution concerns; non-GPL remains the comparatively better-margin business.
• Guidance range discrepancy — one segment cites FY 2026-2027 margin guidance of 35-37%; the CFO reiterated 35-36% elsewhere on the call.
• FY 2027-2028 margin aim similar to FY 2026-2027 guidance — but management flagged a downside floor of 30-32% "if nothing works out"; margin trajectory described as "a little difficult to predict at this point" given higher GPL mix in H2.
• New-launch margin shelf life of ~18-24 months — management said a continuous pipeline of launches should sustain overall margins: "we don't see a challenge there."
• Solvent prices are the key headwind risk — solvents are ~10-12% of raw material costs and ~7-8% of COGS; management flagged that if crude touches $200/barrel, the cost impact would be quite significant (hypothetical scenario, period unspecified).
• Pricing "quite stable" — generic business factors in regular erosion, which was a little less in H1 FY 2026-2027; the CEO attributed ~2.5% of H1 margin expansion (analyst-framed at ~650-700 bps even after one-offs) to the stable pricing environment.
• Cost mitigation in place — raw material inflation largely passed on to customers; inventory interventions well-timed over the last three quarters; switch from gas to bio briquettes benefited operational costs amid rising gas prices.

Solapur, Flow Chemistry and the Formulations Build-Out

• Solapur phase one operational in Q3 FY27 — to start as a backward-integration site insourcing intermediates (with margin impact), then operate as both an intermediates and API site; a USFDA inspection — or at least EU GMP — is planned to be triggered within a year of startup.
• Solapur reduces Ankleshwar concentration — Ankleshwar currently contributes almost 65% of revenue; management views Solapur as a big growth driver over the next 2-3 years, enabling larger-volume CDMO APIs and high-value intermediates; asset turns expected to be "pretty good" and in line with current levels (~3x per analyst) in 2-3 years, with short-term turns below that.
• Flow chemistry commercialized on one project — COGS cut to less than half of batch-processing levels; 5 further projects expected commercially in flow over the next 18-24 months, followed by filings.
• 15 pellet products developed internally — validation planned in FY 2027-2028 ahead of launch; 4 iron-complex products in development; specialized flow chemistry and particle engineering teams are in place and stable.
• Oral solids formulations facility "very likely" — targeted for completion in about 18 to 24 months (around FY 2028-2029); final call not yet taken, with third-party manufacturers an option short term; onco skew is oral solids, so an injectables facility is not initially planned.
• Formulation CRO (acquired Q1 FY 2026-2027) — 25-30 dossiers identified for development over the next 3 years, commercialization expected in about 3-4 years, with ~10-12 filings annually across markets beyond just North America and Europe.

Doubling Ambition, "API-Plus" Platforms

• CDMO to double over the next 3 to 4 years — CFO Tushar Mistry reiterated existing guidance that CDMO will double from current levels (roughly by FY 2029-2030 to FY 2030-2031), at which point it is envisaged to contribute 12-15% of overall revenues.
• FY 2026-2027 CDMO expected much better than FY 2025-2026 — management declined to quantify; a couple of advanced-stage projects may close in H1 FY 2027-2028, and one more project will certainly be added.
• Ticket sizes of 5-7 million per molecule — a range, not a strict band; smaller initial projects entertained if deliverable within existing capacity without significant investment; large-volume intermediate projects were previously forgone for lack of capacity, which Solapur "can open that door" for.
• "API-plus" expansion over 2 to 3 years — IQGenix platform to produce dossiers and offer formulation capability alongside API, plus pre-formulated products (pellets, granules); no specific growth target given.
• Pellets opportunity — driven mainly by OTC-space companies seeking ready capsule-fill product; can be driven via a drug DMF filing rather than a dossier; manufacturing partner to be secured first, with own facility in ~18-24 months and filing/approval/sale ability ~1 year from the call (~FY 2027-2028).

Guidance Reiterated; Inorganic Optionality Under Review

• FY 2026-2027 revenue growth guidance of 10-12% reiterated — with EBITDA margins of 35-36%; analyst Siddharth Nigandi (CWC) framed H2 FY27 math as ~13% growth and ~33% margins, which the CFO confirmed as the company's assumption.
• H2 FY27 mix assumptions — GPL to take off at reasonable but lower margins than non-GPL; non-GPL, generally subdued in Q4, expected flattish or slightly lower in H2 even as GPL ramps up.
• Combined growth capped at 10-12% by GPL — management explicitly linked the flat, substantial GPL contribution to growth staying in that range in Q2 FY 2026-2027 rather than moving to higher double digits over the next two-to-three years.
• Inorganic avenues under review — a number of opportunities reviewed over the past ~15 months; any acquisition must have clear synergy with the existing API platform; organic route described as relatively straightforward.
• No 2030 financial target given — CEO Yasir Raoji emphasized building a quality business on margins and long-term sustainability, which "will lead to its own numbers."
• External environment flagged — management remains mindful of the evolving backdrop heading into H2 FY27, citing core momentum, CDMO progress and pipeline depth as the basis for confidence.