Alembic Q2 FY27 profit rises 81% as EBITDA margin reaches 22%

Alembic Pharmaceuticals Limited reported Q2 FY27 revenue of Rs 2,603 crore, up 36% year on year, while profit attributable to shareholders rose 81% to Rs 335 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin reached 22%. The quarter ended September 30, 2026, and all four reported businesses recorded double-digit revenue growth.

How did Alembic’s Q2 FY27 earnings change?

Alembic’s Q2 FY27 profit increased faster than revenue, with shareholder-attributable profit rising 81% year on year to Rs 335 crore as revenue from operations rose 36% to Rs 2,603 crore. Total income increased 37% to Rs 2,619 crore, while profit before tax rose 96% to Rs 438 crore. Revenue was also 21% higher than Rs 2,150 crore in Q1 FY27.

EBITDA margin rose to 22% in Q2 FY27 from 17% in Q2 FY26 and 16% in Q1 FY27. Gross margin was 74%, compared with 73% a year earlier, while profit before tax margin increased to 17% from 12% and profit after tax margin increased to 13% from 10%.

Total expenses increased 29% year on year to Rs 2,179 crore, below the 37% increase in total income. Material consumption rose 33% to Rs 686 crore, employee-benefit expense rose 15% to Rs 504 crore, and other expenses increased 33% to Rs 851 crore. Finance costs increased 58% to Rs 38 crore and depreciation and amortisation rose 33% to Rs 101 crore.

Which businesses contributed most to Alembic’s revenue growth?

Alembic’s US business made the largest reported segment contribution to Q2 FY27 revenue, rising 77% year on year to Rs 910 crore. Active pharmaceutical ingredient (API) revenue increased 39% to Rs 436 crore, India Branded Business revenue rose 14% to Rs 725 crore, and Ex-US revenue grew 12% to Rs 440 crore.

The US business accounted for 39% of Q2 FY27 revenue, ahead of India Branded Business at 28%, Ex-US formulations at 17%, and API at 16%. US revenue also rose 29% from Rs 778 crore in Q1 FY27, while India Branded Business increased 13% from Rs 642 crore, confirming that the US business was the largest reported revenue segment in the quarter.

In the first half of FY27, Alembic reported revenue of Rs 4,753 crore, up 31% from Rs 3,621 crore in the first half of FY26. US revenue increased 64% to Rs 1,781 crore, API revenue rose 36% to Rs 782 crore, Ex-US revenue rose 14% to Rs 823 crore, and India Branded Business increased 10% to Rs 1,367 crore.

What changed in Alembic’s India and Ex-US businesses?

Alembic’s India Branded Business reached Rs 725 crore in Q2 FY27, comprising Rs 379 crore from specialty products, Rs 177 crore from acute products and Rs 169 crore from Animal Health. Specialty revenue rose from Rs 323 crore in Q2 FY26 and Animal Health rose from Rs 138 crore, while acute revenue was near Rs 178 crore a year earlier.

The Human Health portfolio grew 11% year on year, while the specialty portfolio grew about 17%, according to Alembic. The company ranked 20th in the Indian Pharmaceutical Market with a 1.1% market share in moving annual total data for September 2026, had more than 5,800 medical representatives, and reported that six flagship brands had crossed Rs 100 crore in sales.

Animal Health revenue grew 23% to Rs 169 crore in Q2 FY27, with antibiotics representing 38% of sales and feed supplements representing 33%. Annual Animal Health revenue rose from Rs 232 crore in FY22 to Rs 519 crore in FY26, which Alembic reported as a 22% compound annual growth rate.

Ex-US revenue rose 12% to Rs 440 crore in Q2 FY27, with Europe leading growth and Canada, Chile and other emerging markets providing support. Ex-US annual revenue increased from Rs 775 crore in FY22 to Rs 1,494 crore in FY26, a stated 18% compound annual growth rate, while Alembic disclosed subsidiaries in Germany, the Philippines and Thailand for further expansion.

What does Alembic disclose on US products, API and R&D?

Alembic filed five abbreviated new drug applications (ANDAs) and received one approval in Q2 FY27. Cumulatively, it had filed 283 ANDAs, received 245 approvals including 20 tentative approvals, and commercialised 188 products. It launched 10 products in the first half of FY27 and said commercial traction was building for the Alembic Therapeutics portfolio.

The 245 approved ANDAs comprised 165 oral-solid approvals, 33 dermatology approvals, 23 ophthalmic approvals, 22 injectable approvals and two inhalation approvals. In the first half of FY27, Alembic recorded 11 approvals, including two tentative approvals, and 10 launches, comprising five oral-solid, two oncology oral-solid, two injectable and one dermatology product.

Research and development (R&D) spending was Rs 407 crore in the first half of FY27, compared with Rs 332 crore in the first half of FY26. R&D expense represented 8% of Q2 FY27 revenue, versus 10% in Q2 FY26 and 9% in Q1 FY27; Alembic identifies formulation and API R&D capabilities in Vadodara and Hyderabad, plus a bio centre in Vadodara.

API revenue increased 39% to Rs 436 crore in Q2 FY27, which Alembic attributed to volume-led growth and customer demand. The business filed one US drug master file in the quarter, bringing cumulative US Food and Drug Administration drug master file filings to 153. API revenue was Rs 1,187 crore in FY26 after Rs 1,133 crore in FY25.

Conclusion

Alembic’s Q2 FY27 outcome combined 36% revenue growth with an 81% rise in shareholder-attributable profit, taking EBITDA margin to 22% from 17% a year earlier. The US business generated the largest reported segment increase, while API, India Branded Business and Ex-US operations also delivered double-digit growth. Expenses rose 29%, slower than total income growth of 37%.

The next disclosures to watch are execution against Alembic’s stated focus on complex platforms and specialty segments in the US, where it had 283 cumulative ANDA filings and 188 commercialised products. Management’s disclosed Ex-US expansion through subsidiaries in Germany, the Philippines and Thailand, alongside R&D spending of Rs 407 crore in the first half of FY27, remains subject to development, regulatory, manufacturing and market risks identified in the presentation.