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Alembic Pharmaceuticals has announced its financial results for the fourth quarter and the full year of fiscal year 2026. The company's revenue for Q4 FY26 rose 4% compared to the same period last year, totaling INR 1,838 crore. This growth was propelled by new product introductions in the United States and increased sales volumes in its Active Pharmaceutical Ingredient (API) and Animal Health divisions.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding R&D expenses, increased by 8% to INR 455 crore for the quarter, with core profit margins holding steady around 25%. The reported Profit After Tax (PAT) for the quarter stood at INR 203 crore. For the full fiscal year 2026, Alembic's revenue saw a year-on-year increase of approximately 10%. Full-year EBITDA before R&D reached INR 1,846 crore, representing 25% of revenue and a 20% rise from the previous year. Reported PAT for the full year was INR 675 crore, up 16%.
These results reflect a period of steady performance for Alembic Pharmaceuticals, marked by consistent revenue growth and enhanced profitability. The company's strategic emphasis on launching new products in significant markets like the U.S. and expanding its Animal Health segment highlights its efforts to diversify and reinforce its business operations. The guidance for FY27, which projects low double-digit growth and aims for margin enhancement, indicates a continued commitment to profitable expansion.
Alembic Pharmaceuticals has been actively strengthening its business within India, which experienced 4% growth in Q4 and 5% for the entire fiscal year, driven by specialty therapies and its animal healthcare products. The international segment, especially the U.S. market, serves as a primary engine for growth, with ongoing efforts to carefully strategize market entry. The API division has demonstrated moderate growth, although it continues to face challenges related to pricing. The company is also allocating resources towards research and development for complex and peptide-based products.
Looking ahead to FY27, Alembic Pharmaceuticals anticipates consolidated revenue growth in the low double-digit range. The company expects to achieve further margin improvement over the next two to three years by balancing the impact of its U.S. branded business with stronger contributions from its generic products and API segments. The U.S. business is forecast to grow between 10% and 15% in Indian Rupee terms, while markets in the Rest of the World (ROW) are projected to expand by more than 15%. The API business is targeted for growth of approximately 10%.
Potential risks include ongoing pricing pressures within the API segment and the initial impact on margins from new product launches in the U.S., such as Pivya. However, the company views these as temporary challenges.
For FY27, Alembic has guided its R&D spending to be between INR 750 crore and INR 800 crore. Capital expenditure is expected to range from INR 300 crore to INR 350 crore.
Investors will closely monitor the success of new product launches in the U.S., the effect of the U.S. branded business on overall profit margins, and the sustained growth in international and API segments throughout FY27.