Alembic Pharmaceuticals Shares Drop 9% Amid Weak Q4 Results
Alembic Pharma shares plunge 9% on soft Q4 results, weak margins drag
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Shares of Alembic Pharmaceuticals, based in Gujarat, India, fell over 9% to ₹710.70 after the company reported disappointing Q4FY26 results. Despite a 29% year-on-year increase in net profit to ₹202 crore, weak margins and lower-than-expected revenue led to a decline in stock performance, prompting analysts to adjust earnings forecasts.
- 01Alembic Pharma's revenue for Q4FY26 rose 4.4% year-on-year to ₹1,848 crore, but fell short of analyst expectations.
- 02The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) dropped 16.2% to ₹228 crore, resulting in a narrowed Ebitda margin of 12.3%.
- 03Motilal Oswal Financial Services noted that Alembic's revenue, Ebitda, and profit after tax (PAT) were 2%, 29%, and 43% below estimates, respectively.
- 04The company launched six products in the US market during the quarter, contributing to an 11% growth in international business.
- 05Analysts have lowered their earnings estimates for FY27 and FY28 by 12% and 6%, respectively, citing slower growth in domestic segments and increased R&D costs.
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Shares of Alembic Pharmaceuticals, a Gujarat-based pharmaceutical company, fell over 9% to an intraday low of ₹710.70 on the National Stock Exchange after the company reported disappointing results for the March 2026 quarter (Q4FY26). The stock was trading at ₹720, down 8.15% from the previous close of ₹784.10. Despite a 29% year-on-year increase in consolidated net profit to ₹202 crore and a 4.4% rise in revenue to ₹1,848 crore, the results were below expectations due to a 16.2% decline in earnings before interest, tax, depreciation, and amortisation (Ebitda) to ₹228 crore, leading to a narrower Ebitda margin of 12.3%. Analysts from Motilal Oswal Financial Services (MOFSL) attributed the weaker performance to sluggish growth in acute therapies and elevated R&D expenses. They have revised their earnings forecasts downward for FY27 and FY28, anticipating a compound annual growth rate (CAGR) of 21% for Ebitda and 26% for profit after tax (PAT) over the next two years, driven by growth in the US market and increasing product launches. The company's market capitalization is ₹14,142 crore, with a 52-week high of ₹1,107.90 and a low of ₹635.80.
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The decline in Alembic Pharma's stock price may affect investor confidence and could impact future funding for growth initiatives.
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