01 — At a Glance
The Company That Demerged Its Dreams, Kept The Land
- 52-Week High / Low₹126 / ₹74.9
- Q3 FY26 Revenue₹74.3 Cr
- Q3 FY26 PAT₹60.1 Cr
- EPS (Q3)₹2.34
- TTM EPS₹12.41
- Book Value / Share₹98.8
- Price to Book0.82x
- Debt / Equity0.00x (mostly)
- Net Worth (Sep 2025)₹2,535 Cr
- Total Assets (Sep 2025)₹2,727 Cr
Flash Summary: Alembic posted Q3 PAT of ₹60.1 crore at a ₹79.5 stock price, valuing it at just 6.4x TTM earnings. The company is practically debt-free, holds a ₹5,570 crore stake in Alembic Pharma (more than 2.7x its market cap), and still trades below book value. The only mystery: why hasn’t the market re-rated this yet? The answer: because the real estate business keeps confusing everyone.
02 — Introduction
Once Upon A Time: 118 Years, One Identity Crisis
Alembic Limited was born in 1907 — back when Indians were debating whether to wear a waistcoat or just go with dhotis. For over a century, it made pharmaceuticals. Then, in 2010, the board had a think-and-decided: “You know what? Let’s split the company. We’ll keep the holding company, the real estate, the windmills, and the APIs. The actual money-making pharma formulations? Let’s spin that into Alembic Pharma Ltd and keep 28% of it as a trophy.”
Today’s Alembic is that trophy holder. It’s a real estate developer with 102 acres of land in Vadodara (and some posh projects), a minority shareholder in a ₹6,800 crore pharmaceutical company, and a marginal API manufacturer on life support. The stock has returned -25% in one year, -5.74% in five years, and somehow still pays a 3% dividend. This is a company where every quarter feels like showing up to a family gathering where nobody agrees on anything, but everyone leaves happy because there’s free food.
The Plot Twist: Alembic’s 28.5% stake in Alembic Pharmaceuticals (APL) is now worth ₹5,570 crore. Alembic Ltd itself has a market cap of ₹2,041 crore. Mathematically, the market is saying: “Your real estate + APIs + 71.5% of APL holdings we don’t own = negative ₹3,529 crore.” Yes, negative. The market is literally charging you to own the non-APL parts. This is a conundrum wrapped in confusion inside an enigma.
03 — Business Model: WTF Do They Actually Sell?
Real Estate Delivered Dreams. APIs Deliver… Mixed Results.
Let’s split Alembic’s businesses. Revenue breakdown (FY25) tells the story: Real Estate is doing ₹80% of the work, APIs are barely 20%. But the PAT breakdown (profit after tax) reads like a financial thriller: real estate projects generate solid gross margins, but APIs operate on job-work margins that would make a supermarket jealous.
The real estate segment includes four residential projects at various stages: Townhouse 24 (100% sold), The Villa (75% sold), The Garden (85% sold), and the newly launched Park Crescent. Plus, it’s leasing commercial office buildings in Vadodara’s Alembic City — a mixed-use development with art studios, restaurants, and museums. Yes, they have a museum. Because apparently, when you’re a conglomerate in crisis, you add a museum.
The API segment manufactures generic active pharmaceutical ingredients like Erythromycin Estolate and Fluoxetine — mostly on a job-work basis for group companies and other pharma players. Translation: low margins, low volume, low drama. It exists to use up the inherited manufacturing capacity and keep the cost accountant busy. The dividend income from APL stake (₹63 crore in FY25 alone) is the real profit machine, accounting for 23% of revenues but 40% of operating profit.
Real Estate80%of FY25 revenue
API Revenue₹32 CrFY25 segment
Dividend Income₹63 Crfrom APL (FY25)
Land Bank102 Acresin Vadodara
Fun Fact: The electricity duty litigation case from 2004 (yes, 2004) hangs over the company like a Bollywood villain. ₹35 crore deposited with the Supreme Court, ₹20.53 crore provisioned, and the appeal is still “admitted.” This is either the longest legal thriller or an omen. ICRA reaffirmed AA- (Stable) ratings in May 2025, noting the litigation as “monitorable.” Translation: we’re watching this like a Netflix series, but the ratings stay for now.
04 — Financials Overview
Q3 FY26: The Margins Are Thick, The Numbers Are Confusing
