Alembic Pharmaceuticals Limited (APLLTD) AI Stock Analysis

• Market Cap: ₹153.63B
• Dividend Yield: 1.28%
• Average Volume (3M): 9.71K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.98
• 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): 9.40
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹821.00 ▼(-11.75% Downside)

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

Multiple durable revenue channels—domestic branded formulations, international generics, API manufacturing and contract work—reduce reliance on any single market. This diversification supports steadier cash inflows, risk mitigation across cycles, and long-term resilience in pharmaceutical demand.

Consistent revenue growth

Sustained top-line growth near double digits signals expanding market penetration and product uptake across segments. Over a 2–6 month horizon, steady revenue growth underpins reinvestment in R&D and capacity, helping the firm convert scale into durable competitive advantage and future product launches.

Healthy margins and strong ROE

High gross margins and improving EBIT margins, together with robust return on equity, indicate structural cost efficiency and effective capital deployment. These attributes imply sustainable profitability from manufacturing scale and pricing power, supporting reinvestment and shareholder returns over time.

Negative Factors

Weak free cash flow

A decline in free cash flow driven by higher capex and weaker cash conversion reduces financial flexibility. Persistently negative FCF can force external borrowing or slow share-friendly actions, constraining the company’s ability to fund organic growth or absorb industry shocks in the medium term.

Rising leverage

An increasing debt-to-equity ratio signals higher leverage and greater interest burden. Coupled with weaker cash generation, elevated leverage raises refinancing and covenant risk, reducing financial optionality and increasing vulnerability to rate moves or cyclical downturns over the coming months.

Volatile net profit margins

Fluctuating net margins point to inconsistent cost control or pricing pressure—common in generics and API markets. Margin volatility undermines earnings predictability, complicates capital allocation and investment planning, and can erode return-on-capital if not addressed structurally.

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 generates revenue primarily through the sale of generic and branded pharmaceuticals, with key revenue streams coming from its formulations and API segments. The company earns significant income from its extensive portfolio of generic drugs, which are marketed to various healthcare providers and institutions. Additionally, APLLTD engages in partnerships and collaborations with other pharmaceutical companies for research and development, licensing agreements, and distribution, further enhancing its revenue potential. The company's focus on expanding its global footprint, particularly in regulated markets such as the United States and Europe, alongside its commitment to quality and regulatory compliance, contributes to its financial success.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• 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 787.72, above the 50-day MA of 841.57, and above the 200-day MA of 917.95, indicating a bearish trend. The MACD of -22.80 indicates Negative momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 62.63 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	₹149.64B	9.72	―	0.57%	-3.79%	-20.88%
MARKSANS	70 Neutral	₹74.07B	21.06	―	0.44%	14.80%	1.35%
JBCHEPHARM	66 Neutral	₹300.05B	38.76	―	0.86%	10.25%	17.01%
GLAXO	63 Neutral	₹406.14B	42.52	―	2.16%	4.17%	41.51%
JUBLPHARMA	62 Neutral	₹156.22B	32.52	―	0.46%	10.09%	-19.40%
APLLTD	60 Neutral	₹153.63B	24.22	―	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 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.

Alembic Pharmaceuticals Schedules Investor Meeting with ICICI Prudential

Alembic Pharmaceuticals Limited has announced a scheduled one-on-one meeting with ICICI Prudential Pharma Fund on December 10, 2025, in Mumbai. This meeting indicates the company’s proactive engagement with investors, which could enhance its visibility and strengthen investor relations, potentially impacting its market positioning positively.

Alembic Pharmaceuticals Gains USFDA Approval for Diltiazem Tablets

Alembic Pharmaceuticals Limited has received final approval from the US Food & Drug Administration (USFDA) for its Diltiazem Hydrochloride Tablets USP in various dosages. This approval marks a significant milestone for Alembic, enhancing its portfolio of USFDA-approved products and strengthening its position in the global pharmaceutical market. The approval is expected to positively impact the company’s operations and market presence, offering stakeholders potential growth opportunities.

Alembic Pharmaceuticals Initiates Transfer of Unclaimed Shares

Alembic Pharmaceuticals Limited has announced a newspaper advertisement regarding the transfer of shares from its Unclaimed Suspense Account to the claimant’s demat account. This move is part of the company’s compliance with regulatory requirements, ensuring that unclaimed shares are properly managed and transferred to rightful owners, thereby maintaining transparency and accountability in its operations.