Alembic Pharma Q2 profit rises 21% on robust US generics and API growth

Alembic Pharma's consolidated profit rose 21% to Rs 185 crore in Q2 FY26, led by strong performance in US generics, APIs, and international markets, with six new ANDA approvals

Alembic Pharmaceuticals on Monday reported a 21 per cent year-on-year (Y-o-Y) rise in its consolidated profit after tax (PAT) for the second quarter of financial year 2025–26 (Q2 FY26) to Rs 185 crore, up from Rs 153 crore a year earlier.

 

What drove Alembic Pharma’s Q2 performance?

 

Revenue from operations rose 16 per cent Y-o-Y to Rs 1,910.15 crore in the September quarter, compared with Rs 1,647.98 crore in Q2 FY25. The company attributed the growth to its strong performance across core businesses, including international markets and the active pharmaceutical ingredients (API) segment.

 

“We have strengthened our presence across key markets while maintaining a sharp focus on profitability and operational excellence, delivering an overall growth of 16 per cent,” said Shaunak Amin, Managing Director at Alembic Pharma.

 

How did US generics and API segments perform?

 

The company’s international business remained a key growth driver. Revenue from US generics rose 21 per cent Y-o-Y to Rs 566 crore, supported by three new product launches during the quarter. Ex-US international generics revenue also increased 31 per cent to Rs 392 crore.

 

Alembic received six abbreviated new drug application (ANDA) approvals in Q2, taking its cumulative total to 226. The API segment grew 15 per cent Y-o-Y to Rs 261 crore, driven by higher export demand.

 

“Growth of 15 per cent on an annual basis is led by a surge in volumes, partially offset by price erosion across markets,” the company noted in its investor presentation.

 

How does the Utility Therapeutics acquisition fit into Alembic’s growth plan?

 

Alembic recently completed the acquisition of Utility Therapeutics, providing an entry point into the US branded generics market.

 

“The acquisition will help us in the long run as it gives us entry into the branded segment in the US. We will launch it in Q4 of this year, and while it will take some quarters to scale up, we aim to strengthen this business further,” said Pranav Amin, Managing Director at Alembic Pharma.

 

He added that tariff-related concerns over branded generics would not impact the Utility acquisition, as the products would be manufactured by a contract development and manufacturing organisation (CDMO) site in Europe rather than India.

 

What are Alembic’s R&D priorities going forward?

 

On future research and development plans, Amin said Alembic would focus more on complex products, peptides such as GLP-1s, long-acting injectables, and other challenging projects.

 

“The company is working on an opportunity in tirzepatide. There is still time for the patent expiry, but we believe we will have the product ready to launch in the first wave once it expires across markets,” he said.

 

He added that while Alembic is not currently developing semaglutide, it may consider entering the second wave of launches.

 

Both tirzepatide and semaglutide are blockbuster molecules used in anti-obesity and type-2 diabetes treatments. While semaglutide’s patent expires in early 2026, tirzepatide will remain protected until the late 2030s.

 

On Tuesday, Alembic Pharma’s shares rose 4.87 per cent to close at Rs 969.30 on the Bombay Stock Exchange (BSE).