Alembic Pharmaceuticals reported a 23% decline in Q3 FY25 net profit to ₹138 crore, despite a 3.81% rise in revenue to ₹1,692 crore. The stock dropped by over 5%.
Alembic Pharmaceuticals, a leading pharmaceutical company based in Vadodara, reported a significant decline in its consolidated net profit for the third quarter of FY25, which ended in December 2024. The company’s net profit stood at ₹138.42 crore, marking a 23.29% drop compared to ₹180.45 crore in the same period last year. However, revenue from operations saw a rise of 3.81%, totaling ₹1,692.74 crore.
Key Financial Highlights
- Net Profit: ₹138.42 crore (down 23.29% YoY)
- Revenue: ₹1,692.74 crore (up 3.81% YoY)
- EBITDA: ₹271 crore (up 1% YoY)
- EBITDA Margin: 16%
Despite the decline in profit, Alembic’s EBITDA showed a slight increase, reflecting the company’s ability to maintain operational efficiency. The revenue growth, particularly in the formulations business, was one of the positive outcomes from this quarter.
Segment Performance
Alembic Pharmaceuticals saw mixed results across its various segments. The API (Active Pharmaceutical Ingredients) segment faced significant challenges, recording a 10% decline in revenue to ₹259 crore. This downturn was primarily due to weaker demand from certain customers and ongoing pricing pressures. However, the company remains optimistic, citing a strong order pipeline as a potential driver for recovery in the upcoming quarters.
The Formulations segment performed relatively well, with a 10% increase in revenue from the US market, reaching ₹521 crore. This growth was driven by key product launches and an increase in market share for existing products. The company anticipates that new product introductions will continue to support growth in this area.
- India Business: ₹614 crore in revenue, up 3% YoY
- Ex-US Business: ₹299 crore in revenue, up 10% YoY
Management Insights
Shaunak Amin, the Managing Director of Alembic Pharmaceuticals, acknowledged the challenges in the acute segment, but remained confident about the company’s overall performance:
“Despite facing market headwinds in the acute segment, our specialty business continued to grow ahead of the market. We have implemented automation and AI to boost field force efficiency, which is expected to have a positive long-term impact. The US business saw significant volume growth, and the Ex-US markets continue to show steady expansion.”
Stock Price Movement
Following the announcement of the earnings report, Alembic Pharmaceuticals’ stock price fell over 5%, reaching a day’s low of ₹888.35. Despite the drop, the market remains focused on the company’s future growth prospects, especially as it continues to expand in international markets and launch new products.
Alembic Pharmaceuticals remains optimistic about its growth trajectory in the upcoming quarters. The company expects a recovery in its API segment and continues to benefit from steady growth in its formulations business. Furthermore, with the implementation of automation and AI to enhance operational efficiency, Alembic is positioning itself for robust performance in the coming quarters. Investors and analysts will closely watch the company’s progress in overcoming pricing pressures in the API business and driving continued growth across its global markets.
