Pharma Stock Hits 20% Upper Circuit After Announcing 94% Net Profit Growth in Q2
This Small-Cap Pharma Stock, engaged in the research, development, manufacturing, and marketing of branded formulations, generic medicines, active pharmaceutical ingredients (APIs), and pharmaceutical products for domestic and international markets, hit a 20 percent upper circuit after the company reported strong September quarterly results with a 93.66 percent YoY increase in net profit.
With a market capitalization of Rs. 17,700.51 crores, the shares of Alembic Pharmaceuticals Limited hit a 20 percent upper circuit of Rs. 965 per share on Wednesday, up from its previous closing price of Rs. 804.20 per share. Since then, the stock has retreated and is currently trading at Rs. 900.50 per equity share.
Q2 FY27 Result Walkthrough
Looking at the quarterly results of Alembic Pharmaceuticals Limited, the company’s consolidated revenue from operations increased by 36.30 percent YOY, from Rs. 1,910.15 crore in Q2 FY26 to Rs. 2,603.48 crore in Q2 FY27, and grew by 21.11 percent QoQ from Rs. 2,149.77 crore in Q1 FY27.
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In Q2 FY27, Alembic Pharmaceuticals Limited's consolidated net profit increased by 81.46 percent YOY, reaching Rs. 335.17 crore compared to Rs. 184.71 crore during the same period last year. As compared to Q1 FY27, the net profit has increased by 93.66 percent, from Rs. 173.07 crore.
The basic earnings per share increased by 81.38 percent and stood at Rs. 17.05 as against Rs. 9.40 recorded in the same quarter in the previous year, FY2026.
Half-Yearly Result (H1 FY27)
Alembic Pharmaceuticals Limited reported strong financial performance in H1 FY27, with consolidated revenue from operations increasing by 31.27 percent year-on-year to Rs. 4,753.25 crore, compared to Rs. 3,620.87 crore in H1 FY26.
The company’s consolidated net profit rose by 49.88 percent year-on-year to Rs. 508.23 crore in H1 FY27, against Rs. 339.09 crore in the corresponding period of the previous financial year.
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Segment-wise Performance (Q2 & H1 FY27)
Alembic Pharmaceuticals Limited reported strong growth across all business segments in Q2 FY27. The India Branded Formulations business grew by 14 percent YoY to Rs. 725 crore from Rs. 639 crore.
The US Formulations business recorded strong growth of 77 percent to Rs. 1,003 crore compared to Rs. 566 crore in Q2 FY26. The Ex-US Formulations business increased by 12 percent to Rs. 440 crore, while the API business grew by 39 percent to Rs. 436 crore against Rs. 314 crore in the previous year.
The Q2 FY27 revenue contribution highlights the US Formulations business as the largest segment, accounting for 39 percent of total revenue. India Branded Formulations contributed 28 percent, followed by Ex-US Formulations at 17 percent and API at 16 percent. This indicates that the US market remains the company's biggest revenue driver, supported by growth across its other business segments.
During H1 FY27, the India Branded Formulations business grew by 10 percent to Rs. 1,367 crore compared to Rs. 1,238 crore. The US Formulations business increased by 64 percent to Rs. 1,781 crore against Rs. 1,089 crore. The Ex-US Formulations business recorded 14 percent growth to Rs. 823 crore, while the API business grew by 36 percent to Rs. 782 crore compared to Rs. 575 crore in H1 FY26.
Strategic Collaboration with DifGen
Alembic Pharmaceuticals Limited has expanded its strategic partnership with DifGen Pharmaceuticals to strengthen its presence in the US complex generics market. Under this collaboration, DifGen will handle product development, regulatory approvals, manufacturing and supply, while Alembic will use its established US network to manufacture selected products and market the portfolio.
The partnership will cover more than 20 specialised generic products, including injectables, eye drops, skin patches and oral medicines, targeting a combined US reference market of approximately $5 billion. The portfolio also includes opportunities for early launches and products with limited competition, creating scope for better market opportunities.
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Initial product launches are expected from FY28, providing potential revenue growth over the coming years. The agreement also gives Alembic access to manufacturing capacity in the US, supporting its long-term expansion and strengthening its international business.
Business Highlights
Alembic Pharmaceuticals Limited focuses on improving healthcare through innovation, quality, and trust. The company has a strong workforce of over 17,200 employees, supported by 2 research and development centres and 9 manufacturing facilities. It has filed 283 ANDAs as of September 30, 2026, strengthening its presence in the global generic medicines market.
The company has a strong domestic presence, with over 2,49,000 prescribers and a field force of more than 5,800 employees in India. Its portfolio includes 209 brands and 188 generic formulations in the US. Alembic also aims to achieve Net Zero emissions by 2050, highlighting its focus on sustainable growth.
Company Overview
Alembic Pharmaceuticals Limited is an Indian pharmaceutical company established in 1907 and headquartered in Vadodara, Gujarat. The company is engaged in the research, development, manufacturing, and marketing of pharmaceutical products. Its business operations include India Branded Formulations, US Formulations, Ex-US Formulations, and Active Pharmaceutical Ingredients (APIs).
Annual Performance of FY26
Alembic Pharmaceuticals Limited’s revenue has increased from Rs. 6,672 crore in FY25 to Rs. 7,345 crore in FY26, which has grown by 10.09 percent. The net profit has also grown by 15.29 percent from Rs. 582 crore in FY25 to Rs. 671 crore in FY26.
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Alembic Pharmaceuticals Limited’s revenue and net profit have grown at a CAGR of 9 percent and 28 percent, respectively, over the last three years. In terms of return ratios, the company's ROCE and ROE stand at 12.6 percent and 13.4 percent, respectively. Alembic Pharmaceuticals Limited’s debt-to-equity ratio is 0.25x.