India's Alembic Pharmaceuticals first-quarter profit jumps on strong US, domestic sales

Alembic Pharmaceuticals

05/08/2025 09:10

Aug 5 (Reuters) - India's Alembic Pharmaceuticals ALEM.NS reported a 14.6% rise in consolidated profit for the first quarter on Tuesday, driven by strong sales in the U.S. and India.

The firm's consolidated profit rose to 1.54 billion rupees ($17.5 mln) in the quarter ended June 30, slightly above analysts estimate of 1.53 billion rupees, according to data compiled by LSEG.

Revenue rose 9.5% to 17.11 billion rupees during the quarter.

Alembic's U.S. generics business grew 13% year-on-year, while its India branded business rose 5%.

KEY CONTEXT

India's generic drugmakers have been facing margin pressures due to lower prices in the U.S. amid fierce competition. They are also staring at the threat of a potential increase in tariffs in this key market.

Alembic said it launched 4 new products in the U.S. during the quarter. The U.S. contributed 29% of Alembic Pharma's overall revenue for fiscal 2025.

Larger peers Cipla CIPL.NS, Dr Reddys Laboratories REDY.NS, and Aurobindo Pharma ARBN.NS have reported weak performance in the U.S.

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
24.70
15.22
NULL
10.90
25.75
Buy
10
0.97
1.14
Dr Reddy's Laboratories
REDY.NS
19.36
12.25
3.11
3.96
-6.83
Hold
37
0.94
0.65
Cipla
CIPL.NS
24.12
15.45
3.83
6.57
-0.95
Buy
35
0.90
0.86
Zydus Lifesciences
ZYDU.NS
21.61
14.09
4.04
6.71
-5.11
Hold
26
0.97
1.15

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

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

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.7770 rupees

($1 = 87.7770 Indian rupees)

APRIL-JUNE STOCK PERFORMANCE https://tmsnrt.rs/4mm8C1u

 (Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair)

 ((VijayDattaram.Malkar@thomsonreuters.com; +91 8097833031;))