India's Alembic Pharma posts quarterly profit jump on strong generics demand

Alembic Pharmaceuticals

04/11/2025 09:50

Oct 31 (Reuters) - Indian drugmaker Alembic Pharmaceuticals ALEM.NS posted a 20.4% rise in second-quarter profit on Tuesday, aided by strong demand for its generic drugs as well as new launches in its key U.S. market.

The company's consolidated profit rose to 1.85 billion rupees ($21.05 million) in the quarter ended September 30.

Revenue from its U.S. generics business jumped 21% to 5.66 billion rupees, helping overall revenue rise 16% to 19.10 billion rupees.

For further results highlights, click [here]

KEY CONTEXT

Alembic Pharma and several of Indian peers that make generic drugs derive a significant share of revenue from the United States. In October, U.S. President Donald Trump shelved plans to impose tariffs on generic drug imports, providing relief to companies in the sector.

In addition, new drug approvals in the U.S., including a hypertension drug and an antidepressant drug, led to strong growth in the geography for the company.

Larger peer Cipla CIPL.NS reported growth in the U.S. market in the reporting quarter, while Dr Reddy's Laboratories REDY.NS highlighted a decline in revenue in the North America segment due to price erosion in key cancer drug generic lenalinomide.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Alembic Pharmaceuticals
ALEM.NS>
23.11
14.26
NULL
9.99
22.00
Buy
12
0.90
1.19
Dr Reddy's Laboratories
REDY.NS
20.33
12.41
3.13
2.57
-9.83
Hold
39
0.91
0.67
Cipla
CIPL.NS
24.38
15.59
3.79
7.48
0.18
Buy
37
0.90
0.86
Zydus Lifesciences
ZYDU.NS
22.87
14.78
3.94
6.01
-6.98
Hold
26
0.95
1.12

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JUNE-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.0650 Indian rupees

($1 = 87.8950 Indian rupees)

ALEM.NS Q2 chart https://tmsnrt.rs/49wEH3o

 (Reporting by Abhirami G from Bengaluru; Editing by Janane Venkatraman)

 ((abhirami.g@thomsonreuters.com;))