Alembic Pharma profit jumps 81%; USFDA approves eye drug

reported strong Q2 FY27 consolidated financial results, with net profit increasing 81.1% year-on-year to ₹335 crore compared with ₹185 crore in the corresponding quarter last year. Revenue grew 36.3% to ₹2,604 crore from ₹1,910 crore, while EBITDA surged 78.4% to ₹563.3 crore compared with ₹315.7 crore. EBITDA margin expanded significantly to 21.6% from 16.5%, indicating strong improvement in operating profitability. Alongside the results, Alembic Pharmaceuticals received final approval from the US Food and Drug Administration (USFDA) for Olopatadine Ophthalmic Solution. The product is used for ophthalmic treatment, and the estimated US market size is approximately $20 million, according to the information provided. The USFDA approval adds another product opportunity to Alembic's US generics portfolio and could contribute to future revenue growth. However, the actual commercial benefit will depend on launch timing, competition, pricing and market share. Fundamentally, strong revenue growth, profit expansion and significant margin improvement make this quarter encouraging. The additional USFDA approval provides a separate business development, although its revenue contribution may be relatively limited given the stated market size. My View: Alembic Pharma delivered strong quarterly earnings, with profit growing faster than revenue and EBITDA margins improving substantially. The USFDA approval adds another opportunity in the US market. Both developments support a positive outlook, while sustainability of margins and commercial performance of the approved product remain important. What to watch: Sustainability of 21.6% EBITDA margin. US product launch and commercial sales. Competition in the $20 million Olopatadine market. US and domestic formulation business growth. Stance: APLLTD – HIGHLY POSITIVE (9/10)