Alembic Pharmaceuticals India Branded Revenue Rises 14% in Q2

Alembic Pharmaceuticals Ltd reported 14% year-on-year growth in India branded revenue to Rs 725 crore in Q2 FY27, led by specialty sales of Rs 379 crore and animal health revenue of Rs 169 crore. The domestic performance contributed 28% of consolidated quarterly revenue of Rs 2,603 crore.

How did Alembic Pharmaceuticals’ India branded business perform in Q2 FY27?

Alembic Pharmaceuticals’ India branded business added Rs 86 crore in revenue from the year-earlier quarter, rising from Rs 639 crore in Q2 FY26 to Rs 725 crore in Q2 FY27. The growth was driven primarily by its specialty and animal health portfolios, while acute revenue was broadly unchanged.

Specialty revenue increased by Rs 56 crore to Rs 379 crore, representing growth of about 17% year on year. Animal health revenue rose 23% to Rs 169 crore, adding Rs 31 crore to the domestic business. Acute revenue declined marginally by Rs 1 crore to Rs 177 crore from Rs 178 crore a year earlier.

The company said its human health segment returned to double-digit growth, with growth of 11% during the quarter. It also said the specialty portfolio grew about 200 basis points faster than the Indian pharmaceutical market, indicating a better relative performance in that portfolio.

Which domestic segments contributed to the revenue increase?

Specialty and animal health accounted for more than the full increase in India branded revenue, offsetting the small decline in acute sales. Specialty remained the largest domestic segment at Rs 379 crore, accounting for just over half of India branded revenue in the quarter.

Animal health was the fastest-growing disclosed domestic segment, rising 23% year on year to Rs 169 crore. Its Rs 31 crore increase was important because acute sales, at Rs 177 crore, did not contribute to growth. The segment mix therefore tilted further toward specialty and animal health during the quarter.

The domestic result matters within the wider business because India branded operations represented 28% of Alembic Pharmaceuticals’ consolidated Q2 FY27 revenue. The company has described India as an area where momentum has improved, although it stated that there remains scope to close the gap with broader market growth.

How did the India business compare with Alembic Pharmaceuticals’ overall results?

Alembic Pharmaceuticals reported consolidated revenue of Rs 2,603.48 crore in Q2 FY27, up 36.3% year on year and 21.1% sequentially. Consolidated net profit rose 81.5% year on year to Rs 335.17 crore, while operating margin improved to 22.21% from 17.02% in the year-earlier quarter.

The faster growth in consolidated revenue reflected a strong contribution from overseas operations. US formulations revenue rose 77% year on year to Rs 1,003 crore, and the company launched three products in the US market during the quarter. The API business grew 39% to Rs 436 crore, while the Ex-US business increased 12%.

The company reported EBITDA of about Rs 578 crore, up 78% year on year, with an EBITDA margin of about 22%. Gross margin was 73.7%, an improvement of 70 basis points from a year earlier. No exceptional item was reported, and the statutory auditors gave unqualified limited-review conclusions on the consolidated and standalone results.

What has management said about domestic growth and profitability?

Management said it aims for the India business to reach market-level growth within the next two to three quarters. It noted that the growth gap versus the market had narrowed meaningfully, supported by the recovery in human health and specialty therapies.

Pranav Amin, Managing Director of Alembic Pharmaceuticals, said the company delivered broad-based growth and improved profitability through execution across markets. He said the US business benefited from volume growth and new launches, while India regained momentum as Ex-US and API operations continued to grow.

For investors, the domestic numbers show that the India branded business expanded despite a flat acute portfolio. Specialty’s growth ahead of the Indian pharmaceutical market and animal health’s 23% increase supported the mix. However, management’s stated objective of attaining market-level growth indicates that domestic growth remains an operational focus.

The wider quarterly improvement was supported by stronger US formulations sales, API growth and higher operating margins. India branded growth was lower than the consolidated revenue growth rate, but its performance showed an improvement in the company’s domestic business compared with the earlier period described by management.

Conclusion

Alembic Pharmaceuticals’ India branded revenue rose 14% to Rs 725 crore in Q2 FY27, with specialty revenue increasing about 17% to Rs 379 crore and animal health up 23% to Rs 169 crore. Acute sales were almost flat, so the domestic increase was concentrated in the specialty and animal health portfolios. At the consolidated level, revenue rose 36.3% and net profit increased 81.5%, supported by US formulations and margin improvement.

The next domestic measure to watch is progress toward management’s aim of matching market growth within the next two to three quarters. Investors will also track whether specialty continues to outperform the Indian pharmaceutical market, whether acute revenue recovers, and how new US product launches contribute to the broader revenue mix.