1. Opening Hook
Alembic just dropped its Q2FY26 results, and if you thought Indian pharma was done surprising, think again. Between semaglutide whispers, a U.S. brand foray, and R&D spend shooting up faster than Ozempic’s global sales, this concall had it all. The Amin brothers were calm, the CFO was clinical, and investors were cautiously caffeinated. Alembic’s big bet? Balancing its old-school generics game with some high-stakes innovation drama. Buckle up—because this is where the company’s next growth curve could either spike like a GLP-1 molecule or flatten like a price-controlled tablet.
2. At a Glance
- Revenue ₹1,910 Cr (↑16% YoY):Growth from everywhere—finally, APIs joined the party.
- Gross Margin 73%:Holding flat, like a well-behaved ECG.
- EBITDA ₹503 Cr (↑32% YoY):Operating leverage kicked in like caffeine.
- R&D Spend ₹187 Cr (↑41% YoY):Scientists clearly won this quarter’s budget war.
- PAT ₹185 Cr (↑30% YoY):Profits grew even after funding peptide dreams.
- Net Debt ₹1,280 Cr:Borrowed to buy Utility Therapeutics—and time.
- US Biz ↑21%, ROW ↑31%, API ↑15%:Pharma’s version of a hat-trick.
3. Management’s Key Commentary
“Revenue grew 16% YoY to ₹1,910 crore.”(Translation: We finally remembered how to grow like it’s 2018 again.)
“EBITDA margin expanded to 26% before R&D.”(Translation: If we ignore R&D, margins look beautiful 😏.)
“R&D expenses up 41% YoY to ₹187 crore.”(Translation: Peptides don’t come cheap, neither do dreams.)
“We’ve acquired Utility Therapeutics to launch Pivya in the U.S.”(Translation: India’s Alembic just went branded in America—cue cautious applause.)
“We’re developing Semaglutide and Mounjaro Tirzepatide.”(Translation: Alembic wants a piece of the GLP-1 gold rush—but not first, just early enough.)
“API grew 15% after 8 slow quarters.”(Translation: Even APIs need a coffee break before coming back.)
“India business up 5%, impacted by GST 2.0 migration.”(Translation: Blame the government—works every time.)
“EBITDA margin goal: 20% in 2 years.”(Translation: Wishful thinking or actual roadmap? Stay tuned.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Revenue (₹ Cr) | 1,910 | 1,648 | +16% | Growth tonic kicked in |
| EBITDA (₹ Cr, pre-R&D) | 503 | 380 | +32% | Leveraging labs and lungs |
| R&D Expense (₹ Cr) | 187 | 132 | +41% | Peptide fever season |
| EBITDA Margin (post-R&D) % | 17% | 15% | +200 bps | Still healthy, despite R&D munchies |
| PAT (₹ Cr) | 185 | 142 | +30% | Profit script worked |
| Net Debt (₹ Cr) | 1,280 | 967 | +32% | Funded U.S. adventure |
| US Business Growth | +21% | – | – | From generics to genetics |
| ROW Business Growth | +31% | – | – | Europe & Canada doing the heavy lifting |
Comment:Alembic’s top-line is steady, margins are resilient, and debt looks manageable—just keep an eye on that R&D spending spree.
5. Analyst Questions
Q:Why did R&D jump 41%?A (Pranav Amin):Peptides, injectables, and GLP-1s. (Translation: Expensive science, hopefully priceless returns.)
Q:What’s the Pivya plan for the U.S.?A:Women’s health, small field force, big dreams. (Translation: We’re not Pfizer, but we’re trying.)
Q:When will the branded biz turn profitable?A:Two quarters of pain, then umbrella curve. (Translation: It rains losses before it pours profits.) ☂️
Q:Why is the API segment finally growing?A:Low base magic and a few development deals. (Translation: Don’t get used to it yet.)
Q:Any one-offs in U.S. growth?A:Nope, just Entresto and good execution. (Translation: No miracle shortages this time.)
6. Guidance & Outlook
Alembic is gunning for18–20% EBITDA marginsover the next two years, betting on:
- Better utilization of new injectable
