Alembic Pharmaceuticals Ltd ↗

APL’s business is divided into three broad segments, (i) branded formulations in the domestic market; (ii) international gene ric formulations (sale of formulations in export markets); and (iii) active pharmaceutical ingredients (API; catering to domestic and export markets). It is also present in the Animal health business , which is part of branded formulation segment. These segments contributed ~33%, 50% and 16% of its consolidated total operating income (TOI), respectively, in FY26 indicatin

APL has experience of over 100 years in pharmaceutical industry. APL’s Chairman, Chirayu Amin is a third-generation entrepreneur and has over three decades of experience. Pranav Amin (MD) and Shaunak Amin (MD), sons of Chirayu Amin, also possesses experience of over a decade in the pharmaceutical industry. APL has well-qualified and experienced second-tier management with well-defined organisational structure and strong management information system.

APL has gradually increased its presence in overseas markets, where majority contribution comes from regulated markets such as the US. APL’s US generic business faces pricing pressure. There is distributors consolidation in the US, where top three distributors account for over 90% of the country’s drug market. Hence, pricing power of suppliers is very limited. Despite continued price erosion, APL’s generic formulation business grew by 16% in FY26 (y-o-y, 13% growth in the US generics and 20% gro

APL’s total debt increased to ₹1,430 crore as on March 31, 2026 (PY: ₹1,258 crore) and remained higher-than-envisaged, considering higher working capital requirement.However, its capital structure continued to remain comfortable marked by overall gearing ratio and total outside liabilities to total net worth (TOL/TNW) of 0.25x (PY: 0.24x) and 0.55x (PY: 0.55x), respectively, as on March 31, 2026. APL’s debt coverage indicators also remain comfortable marked by total debt to PBILDT (TD/PBILDT) of

The Indian pharmaceutical industry (IPI) comprises mainly formulations, API and contract research and manufacturing services (CRAMS) segments. The outlook for IPI is envisaged to remain stable in the medium-to-long term backed by growth opportunity in capitalising on major blockbuster drugs coming off-patent, paving the way for entry of generics, especially in the US market, and geographical diversification in emerging markets. In the domestic market, growth in the formulations segment is expect

The domestic branded formulation business grew by 5% y-o-y in FY26. Excluding animal health, domestic branded formulations grew by ~2% in FY26 (y-o-y). APL also lost market share in FY26 (Market share of ~1.21% as on March 31, 2026, compared to market share of ~1.4% as on March 31, 2025, source: APL). The management indicated factors such as leadership changes, higher attrition and lower MR productivity for modest growth in domestic branded formulation business. APL also has large

APL’s PBILDT margin continued to remain moderate at 15.83% in FY26 due to high overhead cost related to newly commissioned manufacturing facilities, relatively high R&D cost, and cost associated with branded product launch in the US, among others. With moderate operating profitability, the company’s operating ROCE remained at ~15% in FY26 (PY: ~15%). The management has indicated that R&D cost as percentage of sales will be calibrated. Utilisation of newly commissioned manufacturing facilities is

APL derived ~33% of consolidated revenue in FY26 from domestic formulation business. ~13% of formulations are covered under Drug Price Control Order (DPCO). Inclusion of fresh formulations in National List of Essential Medicines (NLEM) and consequently in the DPCO may restrict pricing flexibility for APL. It is also exposed to regulatory changes in global markets (primarily t he US) as international generic business contributed ~50% to its revenue in FY26. Continuous efforts by the US go vernmen