Alivus Life Sciences Q2 FY27 Profit Rises 51.3%

Quarterly performance overview

Alivus Life Sciences Limited reported a sharp improvement in profitability for the quarter ended September 30, 2026. Revenue from operations rose 16.0% year-on-year to ₹682.0 crore in Q2 FY27, compared with ₹590 crore in the corresponding period a year earlier. EBITDA increased at a faster pace of 47.0% year-on-year to ₹285.1 crore. Net profit, or PAT, grew 51.3% year-on-year to ₹196.8 crore. The result reflected stronger revenue mix, new product launches and operating leverage.

Non-GPL business drives revenue growth

The non-GPL business was the principal contributor to the company’s quarterly revenue growth. Revenue from this segment increased 20.8% year-on-year during Q2 FY27. Alivus also reported an 80% rise in CDMO sales, indicating increased activity in its contract development and manufacturing operations. The company said broad-based momentum in non-GPL APIs and the pickup in CDMO operations supported the overall performance. Non-GPL business represented 79% of revenue, highlighting Alivus’s diversification beyond Glenmark Pharma-linked business.

EBITDA grows faster than sales

The difference between revenue growth and EBITDA growth was notable during the quarter. While revenue rose 16.0%, EBITDA increased 47.0%, pointing to improved operating leverage. EBITDA margin reached a record 41.8%, rising 880 basis points year-on-year and 520 basis points sequentially. Alivus attributed the margin improvement to a favourable product mix, recent launches and operating efficiencies. A higher contribution from the company’s non-GPL portfolio also supported profitability.

Net profit and margin improve sharply

PAT for Q2 FY27 stood at ₹196.8 crore, up 51.3% from the year-ago quarter. PAT margin was 28.9%, an expansion of 680 basis points year-on-year and 390 basis points quarter-on-quarter. The profit growth exceeded the pace of revenue expansion, in line with the improvement seen in EBITDA. The company’s results show that higher sales were converted into a larger share of operating and net profit during the period. No separate quarterly earnings-per-share figure was provided in the available update.

Key Q2 FY27 financial metrics

Half-year performance remains positive

For the first half of FY27, revenue from operations reached ₹1,322.4 crore, up 11.1% year-on-year. H1 FY27 PAT rose 41.9% year-on-year to ₹356.9 crore. The half-year figures show that Alivus maintained revenue growth across both quarters of the financial year so far. The company also reported H1 operating cash flow of ₹459.7 crore. Investment and capital expenditure continued during the half year as the company progressed with capacity and research projects.

Cash position and financial flexibility

Alivus generated free cash flow of ₹270.2 crore during Q2 FY27. Cash and cash equivalents, including short-term investments, stood at ₹1,011.6 crore as of September 30, 2026. The company described its balance sheet as debt-free. This cash position provides internal funding capacity for ongoing manufacturing expansion, research infrastructure and other growth initiatives. The reported cash balance also follows a quarter of higher profitability and cash generation.

Intellectual property portfolio expands

The company continued to add to its intellectual property portfolio during the first half of FY27. Cumulative DMF and CEP filings reached 630 as of September 30, 2026. Alivus filed 10 patents during H1 FY27 and received three grants. Total cumulative patent grants consequently reached 88. These filings and grants are relevant to the company’s specialty API pipeline and its ability to support regulated-market product opportunities.

Solapur and Taloja projects progress

Construction at the Solapur facility is progressing in phases. Phase 1 is expected to be completed in Q3 FY27, while Phase 2 is expected in Q4 FY27. Alivus is also building a new R&D facility at Taloja. The proposed Taloja site is intended to strengthen capabilities in flow chemistry and oncology research. The company has also outlined reactor-capacity expansion from 1,424 KL to 2,150 KL by FY27E.

What the results mean for investors

The quarter’s main feature was the expansion in margins alongside revenue growth. A 47.0% increase in EBITDA against 16.0% growth in revenue demonstrates the impact of product mix and operating leverage during Q2 FY27. Growth in non-GPL APIs and CDMO sales reduced dependence on the GPL-linked business in the reported revenue mix. At the same time, the strong cash balance gives Alivus resources to execute its stated expansion plans. The next operational milestones are the planned completion of Solapur Phase 1 in Q3 FY27 and Phase 2 in Q4 FY27.