Alembic revenue falls 46% as fair-value gains lift profit

Alembic Limited reported Rs 30.25 crore of consolidated revenue from operations for the quarter ended September 30, 2026, down 46% from Rs 55.86 crore a year earlier, while Rs 68.28 crore of dividend income and fair-value gains helped produce Rs 72.76 crore of profit before tax.

Why did Alembic’s operating revenue fall in September 2026?

Alembic’s operating revenue fell because both the real estate and Active Pharmaceutical Ingredients (API) businesses recorded lower quarterly revenue. Consolidated revenue from operations was Rs 30.25 crore in the quarter ended September 30, 2026, compared with Rs 48.74 crore in the June 2026 quarter and Rs 55.86 crore in the September 2025 quarter. The decline was Rs 18.49 crore sequentially and Rs 25.61 crore year on year.

Real estate remained the larger business, but its revenue declined to Rs 23.45 crore from Rs 37.03 crore in June 2026 and Rs 45.56 crore a year earlier. API revenue was Rs 6.79 crore, below Rs 11.71 crore in the preceding quarter and Rs 10.30 crore in September 2025. Real estate accounted for Rs 23.45 crore of the Rs 30.25 crore consolidated operating revenue in the September quarter.

For the half year ended September 30, 2026, Alembic’s revenue from operations was Rs 78.99 crore, compared with Rs 105.61 crore in the corresponding prior-year half. Real estate revenue decreased to Rs 60.48 crore from Rs 82.35 crore, while API revenue declined to Rs 18.51 crore from Rs 23.26 crore. The half-year comparison shows lower revenue in both disclosed operating segments.

How did dividend and fair-value income support Alembic’s profit?

Dividend income and gains or losses on fair-value changes of financial assets totalled Rs 68.28 crore, compared with Alembic’s Rs 72.76 crore consolidated profit before tax for the September 2026 quarter. This unallocable item was Rs 2.20 crore in the June 2026 quarter and Rs 61 crore in the September 2025 quarter. The two operating segments together generated Rs 4.50 crore of segment result before interest and tax.

Other income was Rs 71.55 crore in the September quarter, versus Rs 5.96 crore in June 2026 and Rs 64.92 crore a year earlier. The segment statement identifies Rs 68.28 crore as dividend income and fair-value movement, while other unallocable income was Rs 50 lakh and interest expense was Rs 52 lakh. Adding these items to the Rs 4.50 crore combined segment result reconciles to the reported Rs 72.76 crore profit before tax.

Profit before tax was lower than the Rs 84.78 crore reported in September 2025, despite the Rs 7.28 crore rise in dividend and fair-value income. Combined segment result fell by Rs 17.86 crore from Rs 22.36 crore, while other unallocable income decreased by Rs 1.49 crore and interest expense increased by Rs 4 lakh. Against June 2026, profit before tax increased from Rs 17.34 crore as the dividend and fair-value item rose by Rs 66.08 crore.

For the half year ended September 30, 2026, dividend income and fair-value gains or losses were Rs 70.47 crore, up from Rs 62.70 crore a year earlier. Consolidated half-year profit before tax was Rs 90.09 crore, compared with Rs 104.57 crore in the prior-year period. The disclosed figures show that the increase in this unallocable income did not offset the decline in operating segment results over the half year.

Which Alembic operating segments reported lower profit?

Both operating segments reported lower profitability, with the API business recording a Rs 17 lakh loss and real estate reporting Rs 4.67 crore of segment profit in the September 2026 quarter. Segment results are reported before taxes and interest. API had earned Rs 1.66 crore in June 2026 and Rs 1.95 crore in September 2025.

Real estate segment profit declined from Rs 13.98 crore in June 2026 and Rs 20.41 crore a year earlier to Rs 4.67 crore. The year-on-year decrease of Rs 15.74 crore in real estate was larger than the Rs 2.12 crore reduction in the API result, from a Rs 1.95 crore profit to a Rs 17 lakh loss. These movements accompanied the respective revenue declines in the two segments.

For the half year ended September 30, 2026, API segment profit was Rs 1.49 crore, down from Rs 4.68 crore in the prior-year half, and real estate segment profit was Rs 18.64 crore, down from Rs 36.35 crore. Combined segment result therefore declined to Rs 20.13 crore from Rs 41.03 crore. September-quarter total expenses were Rs 29.04 crore, compared with Rs 36 crore a year earlier, including construction cost of Rs 3.91 crore and employee-benefit expense of Rs 11.32 crore.

What do Alembic’s wider earnings and balance-sheet figures show?

Alembic’s net profit after tax, before the associate’s share of profit, was Rs 67.57 crore in the September 2026 quarter, compared with Rs 15.70 crore in June 2026 and Rs 76.06 crore a year earlier. Current tax was Rs 8.25 crore and deferred tax was a Rs 3.06 crore credit. This measure followed the Rs 72.76 crore consolidated profit before tax.

The share of associate profit was Rs 95.30 crore, compared with Rs 49.19 crore in June 2026 and Rs 52.43 crore in September 2025. Net profit after tax and share of associate profit was consequently Rs 162.87 crore, up from Rs 128.49 crore a year earlier. Basic and diluted earnings per equity share were Rs 6.34, versus Rs 5 in the prior-year quarter.

Total consolidated assets were Rs 2,826.38 crore at September 30, 2026, compared with Rs 2,589.51 crore at March 31, 2026. Investments accounted for using the equity method increased to Rs 1,780.80 crore from Rs 1,704.43 crore, while non-current investments rose to Rs 324.47 crore from Rs 173.10 crore. The filing does not provide a separate explanation for these movements.

Consolidated equity was Rs 2,675.65 crore at September 30, 2026, including Rs 2,624.30 crore of other equity. Total liabilities were Rs 150.72 crore, and current and non-current borrowings were both shown as nil, compared with total borrowings of Rs 10.64 crore at March 31, 2026. Net cash inflow from operating activities for the half year was Rs 30.57 crore, down from Rs 50.19 crore in the prior-year half.

Conclusion

Alembic’s September-quarter outcome separates operating performance from reported earnings. Revenue and segment profit declined in both real estate and API, and the API unit moved into a Rs 17 lakh segment loss. Dividend income and fair-value changes of Rs 68.28 crore, together with Rs 95.30 crore of associate profit, lifted the broader profit measures despite weaker operating results.

The filing provides no management forecast, operating target or scheduled business milestone after September 30, 2026. The unresolved matters to watch are whether later disclosures explain the increase in investments to Rs 324.47 crore and whether real estate revenue and API segment profit improve from the September-quarter levels disclosed here.