Alembic Pharmaceuticals Reports Strong Profit Metrics Amid Ongoing Financial Challenges

Alembic Pharmaceuticals has recently undergone a financial trend adjustment, reflecting a notable improvement in its performance metrics for the quarter ending September 2025. The company reported its highest operating profit to interest ratio at 13.03 times, alongside a robust PBDIT of Rs 315.69 crore and a profit before tax of Rs 216.81 crore. Additionally, cash and cash equivalents reached Rs 1,431.30 crore, while net sales peaked at Rs 1,910.15 crore, showcasing strong operational efficiency with an operating profit margin of 16.53%. The earnings per share also hit a high of Rs 9.40.
However, challenges remain for Alembic Pharma. The operating cash flow for the year is at its lowest, recorded at Rs 87.95 crore, and the interest expense has grown significantly to Rs 72.27 crore. Furthermore, the inventory turnover ratio stands at a low 0.28 times, and the debt-equity ratio is notably high at 2.66 times, indicating potential financial strain.

In terms of market performance, Alembic Pharma has shown resilience compared to the Sensex, particularly over the past week and month, where it outperformed the index. However, year-to-date and annual returns indicate a decline, contrasting with the Sensex's positive trajectory. This mixed performance highlights the need for strategic adjustments as the company navigates its financial landscape.