Alembic Pharmaceuticals Ltd reported Q2 FY27 numbers with revenue of Rs. 2,603.48 Cr (+36.30% YoY) and PAT growth of +81.46% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | November 04, 2026 |
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| Revenue (Q2) | Rs. 2,603.48 Cr (+36.30% YoY) |
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| PAT (Q2) | Rs. 335.17 Cr (+81.46% YoY) |
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| EBITDA margin | 22.21% (+519 bps YoY) |
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| EPS (Q2) | Rs. 17.05 (+81.38% YoY) |
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Quarter Snapshot
Q2 FY27 delivered 36.30% YoY revenue growth with PAT up 81.46% and operating margin expanding ~519 bps YoY to 22.21%, well above management's high-teens FY27 margin path. Venetoclax 180-day exclusivity approval and a zero-483 USFDA inspection add near-term US catalysts, while deleveraging has begun (D/E 0.25x). Watch items are the widening consolidated-vs-standalone loss gap (Rs.96.86 Cr PBT drag), finance costs +57.90% YoY, and receivables still Rs.429.85 Cr above March.
Key Investment Insights
Key Positives
- Consolidated revenue grew 36.30% YoY to Rs.2,603.48 Cr (+21.11% QoQ), accelerating from +25.66% YoY in Q1
- PAT grew 81.46% YoY to Rs.335.17 Cr, outpacing revenue growth and reversing the Q1 pattern of PAT lagging revenue
- Reg-52 operating margin expanded to 22.21% from 17.02% YoY (~519 bps); standalone operating margin reached 27.01% vs 17.53% a year ago
- Derived gross margin of 73.66% landed within management's guided 70–75% band, up from 71.16% in Q1
- EBITDA grew 77.19% YoY to Rs.561.90 Cr (P&L-derived), far ahead of management's 'high-teens FY27 margin' path
- Deleveraging began: D/E improved to 0.25x from 0.28x QoQ; implied gross debt fell to ~Rs.1,488 Cr from ~Rs.1,600 Cr; interest service coverage improved to 12.45x from 9.04x
- Venetoclax Tablets final ANDA approval as first Paragraph IV filer with 180-day exclusivity in a ~US$1,584 Mn US market; 248th cumulative ANDA approved
- USFDA bioequivalence inspection closed with zero Form-483s; effective tax rate headwind of ~588 bps YoY was absorbed while PAT still grew 81.46%
Risk Factors
- Consolidated-vs-standalone PBT gap widened to Rs.(96.86) Cr from Rs.(34.04) Cr in Q1, indicating the overseas subsidiary/US-branded platform drag is increasing
- Finance costs rose 57.90% YoY and 38.57% QoQ to Rs.38.26 Cr on the debt overhang
- Trade receivables remain Rs.429.85 Cr above the March-26 level and gross debt (~Rs.1,488 Cr) is still above the Rs.1,360.85 Cr March level despite the guided unwind
- Effective tax rate rose ~588 bps YoY to 23.76% from 17.88%, a P&L headwind
- Inventory build of Rs.91.09 Cr (Rs.73.37 Cr larger QoQ) flattered gross margin as a P&L item