Alembic Pharma shares slide 4% on Q3 profit miss; is it a good time to buy?

Alembic Pharma shares today: Analysts at Motilal Oswal Financial Services (MOFSL) have retained their Neutral rating on Alembic Pharma, with a target price of ₹860 per share

Shares of Alembic Pharmaceuticals came under pressure on Friday, falling 4.22 per cent to an intraday low of ₹776.20 per share on the NSE, after the company reported a 4 per cent decline in consolidated net profit for the third quarter of FY26.   During the quarter under review, the company’s net profit stood at ₹131.9 crore, down from ₹137.7 crore in the year-ago period, largely due to a one-time ₹42-crore provision related to changes under the new labour code. Revenue from operations, however, grew 11 per cent year-on-year to ₹1,876.31 crore, compared with ₹1,692.74 crore in the corresponding period last year.  The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 12.8 per cent YoY to ₹293.5 crore in Q3FY26. Alembic reiterated its FY26 revenue growth guidance of 10–12 per cent but refrained from offering guidance for FY27.

 

 

Despite partially recovering from intraday losses, Alembic shares were trading 3.41 per cent lower at ₹782.85 per share at 11:11 PM, compared with the previous close of ₹810.45 on the NSE. The benchmark NSE Nifty50 was down 78 points, or 0.31 per cent, at 25,564. 

 

In a separate update on Thursday, Alembic said it will miss the first wave of global generic launches of semaglutide, the blockbuster diabetes and obesity drug, but is evaluating entry into the Indian market through partnerships, while keeping options open for a later international launch.

 

“We are late into the semaglutide market internationally, at least in the first wave. But if there is an opportunity, we will get in during the second phase,” G Krishnan, CFO of Alembic Pharmaceuticals, told Business Standard during a post-results call. For India, the company is exploring partnerships with manufacturers to ensure faster market entry, citing timing as a key consideration. 

Should you buy, sell or hold Alembic Pharma shares?

Analysts at Motilal Oswal Financial Services (MOFSL) have retained their Neutral rating on Alembic, with a target price of ₹860 per share, citing in-line revenue and a slight miss on Ebitda/PAT for the quarter.

 

“While ex-US export growth was strong for the quarter, it was offset by moderate YoY growth in domestic formulation and US sales. Alembic exhibited strong growth in the non-US export business for the fourth consecutive quarter,” MOFSL said in its report.

 

The brokerage largely maintained its estimates for FY26/FY27/FY28. Despite significant investments in the US generics space in terms of R&D and manufacturing capacity, Alembic, MOFSL said, has yet to see meaningful revenue growth from this segment. The brokerage expects domestic formulation business to grow gradually in line with the industry.

 

“Considering these factors and valuations adequately factoring in the earnings upside, we reiterate our Neutral rating with a target price of ₹860,” said MOFSL.