Alembic Pharmaceuticals Limited (APLLTD) AI Stock Analysis

• Market Cap: ₹138.93B
• Dividend Yield: 1.28%
• Average Volume (3M): 9.71K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.99
• Revenue Growth: 11.42%
• EPS Growth: -1.91%
• Country: IN
• Employees: 14,858
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 8.90
• Shares Outstanding: 196,563,130
• 10 Day Avg. Volume: 3,953
• 30 Day Avg. Volume: 9,706
• PEG Ratio: -5.74
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 2.64
• P/FCF Ratio: -37.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 35.15
• Revenue Forecast (FY): ₹74.07B

• Rating: 60 Neutral
• Price Target: ₹742.00 ▼(-20.24% Downside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

Alembic Pharmaceuticals presents a mixed outlook. Strong revenue growth and profitability are offset by cash flow challenges and rising leverage. Technical indicators suggest bearish momentum, and the stock's valuation appears high. The absence of earnings call data limits insights into future guidance.

Positive Factors

Diversified revenue streams (branded, generics, APIs)

Alembic's multi-pronged business model—domestic branded formulations, international generics, an internal API manufacturing capability and contract manufacturing—provides durable revenue diversification. Vertical API integration supports margin resilience and supply security, lowering single-market dependency and smoothing cash flow over business cycles.

Consistent revenue growth (~13% YoY)

Sustained ~13% revenue growth indicates expanding market presence and product traction across domestic and international channels. Persistent top-line expansion supports scale economies, funds R&D and commercialization, and provides a structural base for longer-term margin improvement if cost controls hold.

Healthy equity base and robust ROE

A strong equity ratio and robust ROE signal efficient use of shareholder capital and a buffer against shocks. This financial strength supports funding for strategic capex, regulatory filings, and commercial expansion without immediate reliance on dilutive equity, enhancing long-term investment capacity.

Negative Factors

Declining free cash flow from higher capex

Rising capital expenditures have driven a decline in free cash flow and a negative FCF-to-net-income ratio, reducing cash available for dividends, R&D, or debt repayment. If cash generation does not recover, the company may need external financing, which raises long-term funding costs and execution risk.

Rising leverage / higher debt-to-equity

An increasing debt-to-equity ratio raises financial leverage and interest obligations, making the company more sensitive to cash flow variability. Coupled with weaker cash conversion, higher leverage can constrain strategic flexibility, limit ability to invest opportunistically, and elevate refinancing risk over the medium term.

Net profit margin volatility / cost management

Fluctuating net margins point to inconsistent cost control or pricing pressures across businesses. Margin volatility can erode returns on new product launches and reduce the ability to sustainably fund SG&A or R&D, potentially limiting long-term profitability and shareholder return unless structural cost discipline is restored.

Alembic Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

Alembic Pharmaceuticals Limited develops, manufactures, and markets pharmaceutical products in India and internationally. It offers active pharmaceutical ingredients and formulations. The company also provides branded and generic formulations in various therapeutic areas, such as cardiology, gynecology, gastrology, ophthalmology, dermatology, nephrology/urology, orthopedics, anti-infective, cold and cough, and anti-diabetic. In addition, it exports its products. Alembic Pharmaceuticals Limited was founded in 1907 and is headquartered in Vadodara, India.

How the Company Makes Money

Alembic Pharmaceuticals makes money primarily by selling pharmaceutical products and related supplies through multiple revenue streams: (1) Branded formulations (domestic): The company markets prescription medicines under its own brands in India and generates revenue from sales to distributors, hospitals, pharmacies, and other healthcare channels, with earnings driven by product portfolio breadth, physician adoption, and distribution reach. (2) International generics: The company generates revenue by developing and selling off-patent generic medicines in overseas markets (notably through regulated-market approvals), earning income from product sales to wholesalers, distributors, and channel partners; revenue can be influenced by the timing of regulatory approvals, competitive intensity, pricing pressure, and product launches. (3) API business: Alembic manufactures APIs and earns revenue by supplying these ingredients either for internal consumption in its formulations business and/or by selling APIs to external pharmaceutical customers, with profitability affected by manufacturing scale, process efficiency, and raw material costs. (4) Contract manufacturing / partnerships: If and when applicable, the company can earn from manufacturing arrangements or commercial partnerships (e.g., supply agreements or licensing) tied to specific products or markets; null for any specific named partnerships or deal terms because they are not provided here.

Alembic Pharmaceuticals Limited Financial Statement Overview

Summary

Alembic Pharmaceuticals shows strong revenue growth and profitability improvements, but faces challenges in cash flow management and rising leverage. Continued focus on cost control and cash conversion is crucial.

Income Statement

Alembic Pharmaceuticals shows strong gross profit margins over the years, with a notable improvement in revenue and EBIT margins in the recent period. However, the net profit margin has experienced some fluctuations, indicating potential cost management issues. The consistent revenue growth rate is a positive indicator of the company's expanding market presence.

Balance Sheet

The balance sheet reveals a healthy equity base, reflected in a strong equity ratio. The debt-to-equity ratio increased in the latest period, which could indicate rising leverage and potential risk. However, the return on equity remains robust, suggesting efficient use of shareholders' funds.

Cash Flow

The cash flow statement highlights a decline in free cash flow due to increased capital expenditures. The operating cash flow to net income ratio is lower, indicating less cash generation from operations. The negative free cash flow to net income ratio suggests challenges in converting profits into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	68.21B	66.72B	62.29B	56.53B	53.06B	53.93B
Gross Profit	49.27B	47.91B	44.33B	38.78B	38.08B	40.53B
EBITDA	10.32B	9.89B	9.14B	6.96B	8.59B	14.66B
Net Income	6.03B	5.83B	6.16B	3.42B	5.21B	11.46B
Balance Sheet
Total Assets	0.00	77.73B	64.46B	61.83B	71.22B	67.09B
Cash, Cash Equivalents and Short-Term Investments	834.80M	901.00M	1.20B	754.80M	610.90M	2.85B
Total Debt	0.00	12.57B	5.13B	7.22B	7.17B	5.84B
Total Liabilities	-51.90B	25.83B	16.27B	18.12B	18.84B	16.42B
Stockholders Equity	51.90B	51.91B	48.18B	43.70B	52.38B	50.67B
Cash Flow
Free Cash Flow	0.00	-4.76B	4.76B	2.81B	1.27B	8.04B
Operating Cash Flow	0.00	879.70M	8.03B	7.24B	5.52B	14.63B
Investing Cash Flow	0.00	-5.68B	-3.21B	-4.48B	-3.72B	-8.39B
Financing Cash Flow	0.00	4.44B	-4.38B	-2.62B	-2.17B	-5.97B

Alembic Pharmaceuticals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 930.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:APLLTD, the sentiment is Negative. The current price of 930.3 is above the 20-day moving average (MA) of 742.93, above the 50-day MA of 775.87, and above the 200-day MA of 900.94, indicating a bearish trend. The MACD of -23.16 indicates Positive momentum. The RSI at 30.18 is Neutral, neither overbought nor oversold. The STOCH value of 40.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:APLLTD.

Alembic Pharmaceuticals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATCOPHARM	76 Outperform	₹181.90B	26.69	―	0.57%	-3.79%	-20.88%
MARKSANS	71 Outperform	₹78.37B	18.03	―	0.44%	14.80%	1.35%
JBCHEPHARM	66 Neutral	₹341.11B	36.01	―	0.86%	10.25%	17.01%
GLAXO	63 Neutral	₹421.00B	35.44	―	2.16%	4.17%	41.51%
JUBLPHARMA	62 Neutral	₹128.84B	76.03	―	0.46%	10.09%	-19.40%
APLLTD	60 Neutral	₹138.93B	31.27	―	1.28%	11.42%	-1.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Alembic Pharmaceuticals Limited Corporate Events

Alembic Pharmaceuticals Forms Thailand Subsidiary to Expand Southeast Asia Footprint

Alembic Pharmaceuticals Limited has incorporated a new wholly owned subsidiary, Alembic Pharmaceuticals (Thailand) Co., Ltd., in Thailand with a share capital of THB 3 million. The subsidiary, which has yet to commence operations, will focus on promoting, selling and distributing Alembic’s pharmaceutical products in the Thai market as the company seeks to explore new business opportunities in this geography and strengthen its international presence.

The move signals Alembic’s intent to deepen its reach in Southeast Asia, positioning the company to tap growing healthcare demand in the region and diversify its revenue base beyond its existing markets. By establishing a local entity, Alembic is likely aiming to improve market access, regulatory alignment and distribution efficiency, which could enhance its competitive standing and long-term growth prospects in Asia.

Alembic Pharma Wins USFDA Nod for $500 Million Efinaconazole Generic

Alembic Pharmaceuticals Limited has received final approval from the US Food and Drug Administration for its Abbreviated New Drug Application for Efinaconazole Topical Solution, 10%, a generic version of Bausch Health Americas Inc.’s Jublia, indicated for the treatment of toenail onychomycosis. The product, for which Alembic was among the first filers with a paragraph IV certification, addresses a US market estimated at about $500 million for the year to December 2025 and lifts Alembic’s cumulative USFDA ANDA approvals to 234, underlining its expanding US generics portfolio and regulatory track record.

Alembic Pharmaceuticals Board Clears Q3 FY26 Unaudited Results, Appoints New Non-Executive Director

Alembic Pharmaceuticals Limited’s Board of Directors has approved the unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, along with the corresponding limited review reports from the statutory auditors. In the same meeting, the Board appointed Mr. Rajkumar Baheti as a Non-Executive Non-Independent Director, effective 1 April 2026 upon completion of his current tenure as Executive Director on 31 March 2026, subject to shareholder approval via postal ballot; the company also confirmed that he is not debarred by SEBI or any other authority from holding the office of director, indicating continuity and stability in its board-level leadership.

Alembic Pharmaceuticals Sets Q3 FY26 Post-Results Call for Investors

Alembic Pharmaceuticals has scheduled a post-results conference call for analysts and institutional investors on 5 February 2026 to discuss its unaudited financial results for the third quarter of FY26. The call will feature key members of the senior management team, signaling the company’s intent to actively engage with the investor community and provide detailed disclosure on its quarterly performance and outlook, with multiple dial-in and registration options offered to facilitate broad participation from both domestic and international stakeholders.