1. At a Glance – The “Looks Solid, Walks Slow” Pharma Story
Alembic Pharmaceuticals is that kid in class who does everything right, submits assignments on time, wins certificates… and yet somehow never tops the class rank.
As of 6 Feb 2026, the stock trades at ₹792, giving it a market cap of ₹15,571 Cr. Over the last 3 months, the stock has quietly bled ~12%, and over 1 year it’s down ~9.4%, despite profits growing ~21% YoY in Q3 FY26. Confusing? Welcome to Indian pharma valuations.
Q3 FY26 numbers were not bad at all:
- Revenue: ₹1,876 Cr (+10.8% YoY)
- PAT: ₹132 Cr (+21% YoY)
- EBITDA margin: ~16%, stable like a government job
Yet the market is unimpressed. Why?
Because Alembic sits in that awkward middle zone — not a Sun Pharma monster, not a niche high-ROCE rocket either. ROCE is 13%, ROE 11.4%, P/E ~23.5x, which screams “fairly priced, don’t excite me.”
Promoters hold ~69.7%, zero pledge, dividend yield 1.39%, and debt-to-equity 0.28 — balance sheet is fine, ambition is visible, but execution speed is… politely conservative.
So the big question:
Is Alembic a sleeping compounder, or a forever middle-bencher pharma?
Let’s dissect. 🔍
2. Introduction – Alembic: 100+ Years Old, Still Running Generics
Alembic is not a new-age pharma startup with fancy AI molecules and TED-talk founders. This is an old-school, research-driven, integrated pharmaceutical company doing what it knows best — formulations + APIs, day in, day out.
The company operates across:
- India branded formulations
- US generics (the real margin battlefield)
- Ex-US regulated markets
- Backward-integrated APIs
Over FY23–FY25, Alembic quietly shifted its revenue mix:
- Formulations rose to 83%
- APIs fell to 17%, thanks to pricing pressure
The management story is clear:
👉 Less commodity APIs, more differentiated formulations
👉 More oncology & ophthalmic products
👉 More USFDA approvals
👉 More filings, but controlled R&D spend (for now)
But
here’s the irony:
Despite all this activity, 5-year sales CAGR is just ~7.7%, and profit CAGR is negative. That’s the baggage Alembic carries into every valuation discussion.
So while the present looks decent, the past still haunts investor confidence.
3. Business Model – WTF Do They Even Do?
Alembic runs a classic pharma thali, not a single-dish startup.
Formulations – The Real Boss (83% of FY25 Revenue)
India Formulations (35%)
Alembic is ranked 20th in the Indian pharma market with a 1.4% market share — respectable, but not dominance-level.
India business mix:
- Specialty: 54% (growing)
- Acute: 27% (shrinking)
- Veterinary: 19% (surprisingly strong growth)
India business grew 13% from FY23–FY25, driven by specialty therapies like cardiology, gynecology, anti-diabetic, etc.
US Formulations (29%)
This is where Alembic shows ambition.
- 163 commercialized products
- 266 ANDAs filed, 46 pending
- 16 launches in FY25, 15+ planned in FY26
US business grew 24% between FY23–FY25, helped by continuous launches and market share gains.
Ex-US Formulations (19%)
Often ignored, but quietly powerful:
- Europe, Canada, Australia, Brazil, South Africa
- 46% growth between FY23–FY25
- 40 product launches planned in FY26
API Business (17%) – The Struggling Cousin
API division exists mainly for backward integration:
- 1,512 KL reactor capacity
- 194 APIs manufactured
- 440 customers
- 36% captive consumption
But
