Drugmaker Alembic Pharma posts earnings dip on Indian labour code changes

Cipla

05/02/2026 08:53

Feb 5 (Reuters) - Indian drugmaker Alembic Pharmaceuticals ALEM.NS on Thursday reported lower third‑quarter profit on Thursday after taking a one-time charge linked to India's new labour code, despite strong demand for its generic drugs and new product launches in its key U.S. market.

The company's consolidated profit fell to 1.33 billion rupees ($14.7 million) in the quarter ended December 31, from 1.38 billion rupees a year earlier.

Alembic took up a one-time charge worth 301 million rupees linked to India's new labour codes. Excluding the charge, profit rose nearly 15%.

Revenue from operations jumped 11% to 18.76 billion rupees.

For further results highlights, click nFWN3Z01UA.

KEY CONTEXT

Alembic Pharmaceuticals and several Indian generic drugmakers derive a large share of their revenue from the United States. The sector received a boost in October after U.S. President Donald Trump shelved plans to impose tariffs on generic drug imports.

Stronger U.S. sales for Alembic were also supported by new drug approvals, including a hypertension treatment and an antidepressant, which helped drive growth in the market.

By contrast, larger peers Cipla CIPL.NS and Dr Reddy's Laboratories REDY.NS posted subdued North America sales, weighed down by price erosion in key products, including the generic cancer drug lenalidomide.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth
Profit growth
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Alembic Pharmaceuticals Ltd
ALEM.NS
18.77
12.08
NULL
10.63
22.94
Buy
11
0.78
1.38
Zydus Lifesciences Ltd
ZYDU.NS
21.45
14.60
3.34
7.17
-10.15
Hold
29
0.90
1.22
Cipla Ltd
CIPL.NS
23.33
15.05
3.45
7.82
0.47
Hold
37
0.91
0.98
Dr Reddy's Laboratories Ltd
REDY.NS
21.93
13.14
2.84
3.30
-10.28
Hold
39
0.93
0.65

* 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

OCTOBER TO DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 90.2200 Indian rupees

Alembic Pharma stock perf https://tmsnrt.rs/4kgpffn

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))