Alembic Pharma Eyes Double-Digit Expansion Amid Strengthening US Presence

Alembic Pharmaceuticals Pins Next Phase of Growth on US Business

Alembic Pharmaceuticals, a leading Indian pharmaceutical company, is focusing on its US business as a key driver of its growth. According to the company's managing director, Pranav Amin, the US market is expected to witness a growth of 10-15 percent, driven by a steady stream of launches and improving execution.

The company's guidance for low double-digit revenue growth this fiscal aligns with management's broader expectations. Analysts at Equirus also predict that the US will remain a key growth driver, with mid-teen growth projected over the next two years, backed by a strong pipeline of launches.

US Business Showing Signs of Traction

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After a period of subdued growth, Alembic's US business is showing signs of traction, with 13 percent growth in FY26 driven by both pricing and volumes. The momentum is being supported by consistent product launches and market share gains, with the company planning 15 plus launches this fiscal, including limited-competition opportunities.

The US business contributed Rs 2,206 crore to FY26 revenue, making it the single-largest segment with a 30 percent share. Upcoming high-value launches such as generic Bosulif, generic Adempas, and generic Selexipag could help improve utilisation of manufacturing facilities and drive operating leverage.

Margins Under Pressure but Recovery in Sight

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Despite the improving outlook, profitability remains under pressure. Alembic's EBITDA margin fell to about 12.3 percent in Q4, impacted by higher R&D spending and investments in new facilities. However, the company expects margins to improve gradually, targeting a return to 20 percent EBITDA over the next two or three years, driven by scale benefits, better capacity utilisation, and high-value launches.

In the near term, analysts expect some drag from the US branded business, which could impact margins by 100-150 basis points in FY27 before stabilising.

Diversified Growth Engines

Beyond the US, Alembic is leaning on a diversified portfolio to support growth. The rest-of-world business grew 20 percent in FY26 and is expected to sustain 15 percent growth, while the API segment continues to deliver steady, albeit modest, expansion. India, however, remains a weak spot, with domestic revenue growing just 4-5 percent.

Alembic's strategy now hinges on improving execution and sweating existing assets rather than fresh capex. The company has completed most of its large investment cycle, with future spending largely limited to maintenance and R&D. At the same time, it is doubling down on complex generics, peptides, and specialty therapies, areas that offer higher margins but require upfront investment.