Alembic Pharma Q4 FY25: Profit Slips 12% Despite Strong Revenue Growth
Alembic Pharmaceuticals Ltd., one of India’s established pharmaceutical companies, announced its financial results for the fourth quarter of the fiscal year 2024–25 (Q4 FY25), showcasing a mixed performance. While the company achieved robust revenue growth of 17% year-on-year (YoY), its net profit slipped 12%, reflecting the challenges of operating in a highly competitive and regulated global pharmaceutical landscape.
In Q4 FY25, Alembic Pharma reported consolidated revenues of ₹1,770 crore, a significant increase from ₹1,513 crore in the same quarter of the previous year. This growth was primarily driven by a strong performance in the US generics segment and stable growth in the domestic branded formulations business. However, the quarter’s net profit dropped to ₹155 crore from ₹176 crore in Q4 FY24, indicating pressure on operating expenses and margins.
Revenue Drivers and Segment Performance
Domestic Branded Business
In Q4 FY25, Alembic’s India division, which accounts for a significant portion of its total sales, reported a 3% YoY gain, bringing in ₹614 crore. The growth was attributed to increased traction in specialty therapies, including gynecology, cardiology, anti-diabetics, and ophthalmology segments. Alembic has been investing in strengthening its field force and expanding its presence in tier 2 and tier 3 markets, which is gradually reflecting in its numbers.
The company’s consistent focus on specialty therapeutic areas is seen as a positive shift from the generic-heavy approach, helping build long-term brand value and prescription stickiness among healthcare providers.
US Generics Business
Revenue for the US generics business reached ₹521 crore during the quarter, indicating a robust 10% YoY rise. The US continues to be a strategic market for Alembic, supported by the timely launch of new products and a focus on niche complex generics. During Q4, the company launched two products in the US, and with over 20 launches planned for FY25, Alembic expects this momentum to continue.
The company’s recently commercialized manufacturing facilities in Jarod and Karkhadi are expected to play a crucial role in supporting future growth in the US by expanding capacity and regulatory compliance.
Ex-US International Generics
Outside the US, the company’s international generics business—serving regions such as Europe, Canada, Australia, and emerging markets—recorded a 10% YoY growth with revenue of ₹299 crore. Growth in this segment was led by increased demand for select products and the gradual expansion of product offerings across therapeutic categories.
Active Pharmaceutical Ingredients (API) Business
Q4 saw a decline in Alembic’s API business, in contrast to its formulation segments. The API segment generated ₹259 crore in revenue, registering a 10% YoY decline. The dip was attributed to softening global demand, increased competition, and pricing pressures in certain key molecules. Due to destocking efforts, several of Alembic’s API clients in regulated markets also decreased their purchases.
Despite the short-term decline, management remains optimistic about the API business, especially with long-term backward integration plans and differentiated API development.
Profitability and Margins
While revenue growth was solid, profitability faced headwinds. EBITDA for the quarter stood at ₹269 crore, and the EBITDA margin came in at 15.2%, down from 17.5% in the year-ago period. The fall in profit and margin was largely driven by elevated operational expenses, pricing pressure in select international markets, and an increase in R&D spend.
Approximately 8.8% of total sales, or ₹156 crore, was spent on research and development during the quarter. This investment is part of Alembic’s long-term strategy to enhance its complex generics pipeline, particularly in the US market. The company currently has over 180 ANDAs filed with the US FDA, with 126 approvals already received.
Management Commentary and Strategic Direction
Commenting on the results, Mr. Shaunak Amin, Managing Director of Alembic
Pharmaceuticals, stated:
“India’s branded business continues to improve its execution capabilities in both quality and scale. The animal health and specialty markets grew rapidly. The US business outlook appears optimistic, with the commercialization of new facilities and a healthy pipeline of upcoming launches. We are committed to improving cost structures and enhancing profitability going forward.”
Alembic aims to improve its EBITDA margin in the coming quarters by focusing on operational efficiencies, rationalizing R&D expenses, and leveraging scale across its manufacturing platforms. With the US pipeline maturing and global demand for complex generics rising, the company is well-positioned for steady growth over the next two to three years.
Outlook for FY26
In the future, Alembic is still committed to growing its holdings in regulated markets and taking advantage of new product introductions in the US. Its strong ANDA pipeline, expanding international footprint, and capacity additions through new facilities offer visibility for medium-term growth. However, inflationary cost pressures and regulatory hurdles in overseas markets will need careful management.
Conclusion
Alembic Pharma’s Q4 FY25 performance reflects a transitionary phase—while top-line growth is strong, profitability pressures persist. The company’s continued investments in specialty formulations and complex generics, coupled with a long-term vision, are likely to bear fruit as the macroeconomic environment stabilizes and regulatory approvals increase. For investors and stakeholders, the story ahead hinges on execution, especially in high-margin markets like the US.
The image added is for representation purposes only
