Alivus Life Sciences Q2FY26: PAT rises 36% YoY

Key takeaway from the quarter

Alivus Life Sciences, a pharmaceuticals company, reported a strong set of Q2FY26 numbers led by margin expansion and faster profit growth than revenue. Revenue from operations for Q2FY26 came in at ₹5,879.80 million, up 16% year-on-year (YoY). EBITDA for the quarter was reported at ₹1,939 million, up 35.7% YoY, with EBITDA margin improving to 33.0%, up 480 basis points (bps) YoY. Profit after tax (PAT) stood at ₹1,300.26 million, up 36% YoY, with PAT margin rising to 22.1% (or 21.57% as per the financial highlights).

Q2FY26 financial performance in numbers

The company’s Q2FY26 revenue growth was accompanied by a sharper increase in operating profit and net profit. On a quarter-on-quarter (QoQ) basis, the financial highlights note revenue was down 2.3%, while net profit was up 7%. Basic EPS for Q2FY26 stood at ₹10.60 compared with ₹7.78 in Q2FY25.

The margin improvement was a key feature of the quarter. EBITDA margin at 33.0% represented a 480 bps improvement over the year-ago quarter, while PAT margin was reported at 22.1%, up 330 bps YoY.

H1FY26 shows steady growth

For the first half of FY26 (H1FY26), Alivus reported revenue from operations of ₹11,898.26 million, up 8.6% YoY. Net profit for H1FY26 was ₹2,515.61 million, up 22% YoY. The H1 numbers indicate a slower revenue growth rate than Q2 alone, but profitability growth remained ahead of topline growth.

Q4FY25: revenue up 21% YoY, PAT up 44.9% YoY

In Q4FY25, Alivus reported revenue growth of 21.0% YoY and 1.2% QoQ to ₹6,495 million, marginally above an expectation of ₹6,420 million mentioned in the provided text. EBITDA increased 40.3% YoY and 4.3% QoQ to ₹1,984 million.

For Q4FY25, EBITDA margin stood at 30.5%, up 419 bps YoY and 90 bps QoQ. PAT for Q4FY25 was ₹1,419 million, up 44.9% YoY and 3.6% QoQ. PAT margin was 21.8% compared with 21.3% in the previous quarter.

FY25 income and profit snapshot

Separately stated financials for the period ended March 31, 2025 show:

• Net profit of ₹1,418.6 million for the quarter ended March 31, 2025 versus ₹1,369.6 million for the quarter ended December 31, 2024, and ₹979.3 million for the quarter ended March 31, 2024.
• Total income of ₹6,596.3 million for the quarter ended March 31, 2025 versus ₹6,523.0 million for the quarter ended December 31, 2024, and ₹5,397.28 million for the quarter ended March 31, 2024.
• For FY25, total income was ₹24,214.5 million compared with ₹22,952.5 million in FY24.
• FY25 net profit was ₹4,856.2 million versus ₹4,708.8 million in FY24.

The text also notes that the company closed FY25 with revenue reflecting a 4.5% YoY increase in line with guidance.

Q3FY25: segment growth and cash position

In the investor presentation excerpt, Alivus reported Q3FY25 revenue from operations of ₹6,418 million, up 26.6% QoQ and 12.0% YoY. EBITDA was ₹2,008 million, with EBITDA margin at 31.3%, up 310 bps QoQ and 90 bps YoY. PAT for Q3FY25 was ₹1,370 million.

The presentation highlighted segment moves in Q3FY25. Generic business grew 16.9% YoY and 25.9% QoQ to ₹5,966 million, while CDMO revenue increased 25.0% QoQ to ₹300 million. The company also split revenue into GPL and Non-GPL: Non-GPL revenue was ₹4,645 million and GPL revenue was ₹1,773 million, with GPL contributing about 28% of total revenue from operations.

The company also disclosed that during 9MFY25 it generated free cash flow of ₹1,838 million, leading to cash and cash equivalents (including short-term investments) of ₹4,993 million as of December 31, 2024.

Manufacturing, filings, and R&D indicators

As of December 31, 2024, the company reported cumulative filings of 548 DMFs and CEPs across markets including the United States, Europe, Japan, Russia, Brazil, South Korea, Taiwan, Canada, China, and Australia.

On R&D, the document cites R&D spend of ₹562 million for 9M FY25, and shows R&D spend at ₹753 million in FY24. The filing grid included 21 products in the HP API portfolio, with an addressable market size of $15 billion (Source: IQVIA, MAT Sep’24) referenced in the text.

Capacity expansion plans outlined

The strategy section lists future capacity expansion steps:

• Brownfield expansion at Ankleshwar with a planned addition of 60 KL pharma capacity in FY26.
• Brownfield expansion at Dahej with a planned addition of 160 KL in FY26.
• Greenfield Solapur project where Phase 1 construction of 200 KL has started; further phases include Phase 1.1 of 400 KL (backward integration) and Phase 2 planned addition of 400 KL with timelines FY26 and FY27/FY28 as stated.

The reactor capacity expansion plan (KL) shown in the document includes 765 (FY22), 1,198 (FY24), 1,424 (FY25E), and 2,650 (FY27E).

Analyst valuation reference in the text

The provided content includes a valuation statement: the company is valued at 27x FY25e EPS with a target price of ₹1,382 per share, implying an upside of 20%. This is presented as an external valuation reference in the text.

Summary table of key reported metrics

Why the results matter for investors

The Q2FY26 print shows profitability expanding faster than revenue, with EBITDA margin at 33.0% and PAT margin above 21%. In parallel, the Q3FY25 presentation points to broad-based contributions across geographies such as India, Europe, ROW and Japan, and highlights that regulated markets contributed 82% in Q3FY25.

The capacity pipeline and filings data provide additional context for how the company is positioning its manufacturing and development engine. At the same time, the investor presentation includes a detailed risk disclaimer on factors such as macro conditions, currency moves, regulation, competition, and execution risks around strategy and expansion plans.

Conclusion

Alivus Life Sciences’ Q2FY26 results show 16% YoY revenue growth and 36% YoY profit growth, supported by a sharp expansion in EBITDA margin to 33.0%. The company’s recent disclosures also outline segment momentum, a cash position of ₹4,993 million as of December 31, 2024, and a multi-location capacity expansion plan with key steps scheduled across FY26 to FY27/FY28.