Alembic Pharmaceuticals Ltd (APLLTD) Q1 FY27 Results Analysis: PAT Jumps 90%, Revenue Surges 26%

Alembic Pharmaceuticals Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,149.77 Cr (+25.66% YoY) and PAT growth of +12.11% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Alembic Pharmaceuticals delivered strong 25.66% YoY revenue growth, the highest in recent quarters, driven by broad-based formulations and API business along with forex tailwinds. Standalone performance was exceptional with PAT up 90% and EBITDA margin expanding to 19.26%. However, consolidated margin slipped 65 bps YoY due to subsidiary losses from the Pivya launch, which is expected to turn positive by end of FY27. Working capital metrics improved, and the company benefits from a tariff exemption on US generics.

Key Investment Insights

Key Positives

• Revenue grew 25.66% YoY to Rs.2,149.77 Cr, the highest quarterly growth in recent quarters
• Standalone PAT surged 90.26% YoY to Rs.196.96 Cr, with EBITDA margin expanding to 19.26% from 14.83%
• Inventory turnover improved to 5.03x from 4.58x YoY, indicating better working capital management
• No exceptional items in the quarter; clean profit quality
• USFDA warning letter on bioequivalence facility had no material financial impact

Risk Factors

• Consolidated EBITDA margin slipped 65 bps YoY to 16.15%, dragged by subsidiary losses (Pivya launch)
• Subsidiary Alembic Therapeutics LLC reported a net loss of Rs.25.93 Cr in the quarter
• Finance costs rose 22.38% QoQ and 17.39% YoY, and debt-equity ratio increased to 0.28 from 0.24
• Effective tax rate increased to 22.31% from 19.19% YoY