Alembic Pharma Q2 BEATS Expectations! 🚀 ICICI Securities REVS UP Target - Should You BUY?

Alembic Pharmaceuticals has reported its Q2FY26 financial results, which have exceeded market expectations. The company saw a significant 25.1% year-on-year growth in its formulations exports, while its domestic Indian business grew at a modest pace of 4.9% in the same quarter. The United States market performed strongly, with a 21% year-on-year growth primarily driven by new product launches, including gEntresto. Alembic Pharmaceuticals plans to sustain this momentum by launching 8 to 10 additional products in the second half of FY26.

In a strategic move, Alembic is expanding into the US specialty segment through the acquisition of Utility Therapeutics. This initiative includes the planned launch of Pivya (pivmecillinam), an anti-bacterial drug, in the first quarter of FY27. The management has set ambitious targets for near-term and medium-term EBITDA margins, aiming for 18% and 20% respectively.

Following these positive developments, ICICI Securities has revised its Earnings Per Share (EPS) estimates for FY26 and FY27 upwards by approximately 2-6%. The brokerage firm has maintained its 'HOLD' recommendation on Alembic Pharmaceuticals shares, increasing the target price to INR 960 based on a valuation of 22 times its FY27E EPS.

Impact This news is highly relevant for Indian stock market investors, particularly those interested in the pharmaceutical sector. The strong performance, strategic expansion into the US specialty market, and a positive analyst outlook could influence investor sentiment and the stock's performance. **Rating**: 8/10.

Difficult Terms: * **Formulations**: These are the final pharmaceutical products (like tablets, capsules, injections) that are ready for patient use. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating profit. * **EPS**: Earnings Per Share. It indicates the company's profitability on a per-share basis. * **YoY**: Year-on-Year. A comparison of performance metrics over the same period in consecutive years.