ALIVUSNSEQ4 FY26May 21, 2026

Alivus Life Sciences Limited

7,665words
107turns
14analyst exchanges
3executives
Management on call
Yasir Rawjee
MANAGING DIRECTOR AND CHIEF
Tushar Mistry
CHIEF FINANCIAL OFFICER – ALIVUS LIFE SCIENCES LIMITED
Soumi Rao
ALIVUS LIFE SCIENCES LIMITED
Key numbers — 40 extracted
59%
PL segment, whose contribution to the overall business has steadily increased over the years from 59% in FY22 to 71% in FY26, thereby reducing our dependence on the GPL business. This growth reflec
71%
se contribution to the overall business has steadily increased over the years from 59% in FY22 to 71% in FY26, thereby reducing our dependence on the GPL business. This growth reflects the increasi
5.7%
aders and profitability. To add more perspective, between FY24 to FY26, our revenue CAGR stood at 5.7%, while EBITDA CAGR during the same period was 15.8%. In absolute terms, we approximately added IN
15.8%
etween FY24 to FY26, our revenue CAGR stood at 5.7%, while EBITDA CAGR during the same period was 15.8%. In absolute terms, we approximately added INR270 crores of incremental revenue over the last 2 y
INR270 crore
7%, while EBITDA CAGR during the same period was 15.8%. In absolute terms, we approximately added INR270 crores of incremental revenue over the last 2 years and INR220 crores on the EBITDA side, taking our
INR220 crore
lute terms, we approximately added INR270 crores of incremental revenue over the last 2 years and INR220 crores on the EBITDA side, taking our margins to 33.6%, the highest in our history. What is particula
33.6%
emental revenue over the last 2 years and INR220 crores on the EBITDA side, taking our margins to 33.6%, the highest in our history. What is particularly noteworthy is that this improvement was achieve
rs,
flows strengthened our balance sheet and maintained a net debt-free position. Over the last 2 years, we have demonstrated the resilience of our operating model and the strength of our diversified por
INR2,552 crore
more sustainable business. Moving to our full year performance. Our revenue for the year stood at INR2,552 crores, registering a 6.9% year-on-year growth and in the non GPL business leading the momentum with 13
6.9%
ng to our full year performance. Our revenue for the year stood at INR2,552 crores, registering a 6.9% year-on-year growth and in the non GPL business leading the momentum with 13% growth. This perfor
13%
res, registering a 6.9% year-on-year growth and in the non GPL business leading the momentum with 13% growth. This performance was supported by strong execution across markets, including Europe, Japa
360 basis point
king our total base of customers to about 900. We delivered EBITDA margins of 33.6%, expanding by 360 basis points, highlighting the inherent strength and operating efficiency of our business. On the capex front
Guidance — 20 items
Soumi Rao
opening
“Please note that the recording and transcript of this call will be available on the website of the company.”
Yasir Rawjee
opening
“This is reflected in the strong and consistent performance of our non-GPL segment, whose contribution to the overall business has steadily increased over the years from 59% in FY22 to 71% in FY26, thereby reducing our dependence on the GPL business.”
Yasir Rawjee
opening
“We expect the contribution from the non-GPL business to continue to increase going forward.”
Yasir Rawjee
opening
“We also witnessed a meaningful recovery in the CDMO business from Q3 of FY26, as existing projects gained traction and newer projects scaled up.”
Yasir Rawjee
opening
“To add more perspective, between FY24 to FY26, our revenue CAGR stood at 5.7%, while EBITDA CAGR during the same period was 15.8%.”
Yasir Rawjee
opening
“We have also added 49 new customers during FY26, taking our total base of customers to about 900.”
Yasir Rawjee
opening
“However, we remain confident in the strength of our business fundamentals and our ability to sustain EBITDA margins in the range of 30% to 32% going forward.”
Tushar Mistry
opening
“To illustrate these, while our GPL revenues have remained relatively stable over the past 2 years, our non-GPL revenues have grown at a CAGR of 7.5% during the same period.”
Tushar Mistry
opening
“This shift in mix is also reflected in our profitability with margins improving from 28% in FY24 to 34% in FY26.”
Tushar Mistry
opening
“With ongoing capex and continued investments in new technologies and products, we remain confident in our ability to sustain this margin trajectory going forward.”
Risks & concerns — 4 flagged
Can you quantify, was there any impact of production and sales?
— Ahmed Madha
And are we seeing any challenges in terms of RM procurement, RM costs, pressure in terms of gross margin because of cost inflation, any logistic issues on the business in general?
— Ahmed Madha
So we don't get that much pressure on pricing.
— Yasir Rawjee
And rather than have a slowdown in supplies or not have supplies, they've kind of given us the green flag that, yes, that's fine.
— Yasir Rawjee
Q&A — 14 exchanges
Q
Congratulations on the great execution you have delivered over the last 2 years post change in the ownership. First question is, we had a fire incident at Dahej plant. Can you quantify, was there any impact of production and sales? And is there any spillover we are expecting in Q1? And also, was there any costs booked related to the same on P&L?
Yasir Rawjee
So the fire at Dahej impacted only the intermediate side of the facility. The API, the finished area was intact. So we didn't experience any great delays. As a result of that, there is no significant spillover. There is some but not very significant. And we hope to be able to tide that by in Q1. From an expense perspective, yes, we have booked a loss due to fire in our other expenses to the extent of INR20 crores. And that's why you see a jump in the other expenses line item. Okay. So just to clarify, out of INR126 crores, INR20 crores is related to the impact. And on the employee cost side, i
Q
Just a couple of questions. Looking at the on a Y-o-Y basis, our material cost is practically flat and our CDMO share of revenue has been also flat. Just understanding, has the product mix on the CDMO been largely superior in the past? That is why we have an expansion in the EBITDA margin?
Yasir Rawjee
So CDMO definitely has better margins, but our CDMO business has grown 18%. Why do we say it's flat? I don't know. No, I mean, sorry, let me rephrase that question. The percentage of revenue has been flat at 6%, 5.5%, 6% compared to the last year also. So contribution to the total revenue is still the same. So I'm just wondering, is it largely because of the larger superior mix of the CDMO within the CDMO. That's what I'm trying to understand. Okay. So improvement in margin has got like, I would say, 3 to 4 factors. Operational efficiency has helped. We have had better cost processes implement
Q
So building on to the question of previous participant on high potent molecule contribution, I wanted to understand this year, we had 12 molecules which were there. And last year, if I see the size was 7 molecules, which were there submitted and accepted. So can you help me understand what is the contribution of high potent molecules this year in our portfolio vis-a-vis last year?
Yasir Rawjee
So see, the only contribution that we get is from the sale of exhibit batch quantities because like I explained, the patent expiries are not going to happen until early 2028. So until then, our customers would not be able to launch and would not be able to buy API from us for those launches. So the only sort of revenue that comes from the high-potent segment right now is the sale of exhibit batch quantities. So it will be fair that it will not be the material contribution for us in the revenue? Not very significant, no. Okay. Second question is, sir, that growth, how much would be the growth c
Q
Congratulations for this transformative journey under this Nirma and your leadership, the way we achieved our cash flow control, then the way we have started investing and the way we leverage the benefits of better operating margin. My question is, sir, first is yet another scope, which are another area where you feel you have scope to improve further the margin or maybe maintaining this very respectable margin?
Yasir Rawjee
See, this year is going to be a bit challenging because of the war. Supply chains do have a little bit of constraint. But demand visibility is pretty good. So we'll have to see how the whole margin thing shapes up. But the thing is we are still confident of maintaining between 30% and 32%. So let's see how it goes. It's a bit early to sort of give the whole year margin guidance. Sir, I just wanted to understand which are the areas where you see internally where you find the scope to improve the margin without giving any numbers, but do you see any area where you feel internally you can do some
Q
I just wanted to congratulate the team on great results. I had a question regarding the capacity utilization for the new facility that will be coming up in Ankleshwar, Dahej and Solapur. So as I see in Q2 and Q3, we will have a bulk of our capex coming live. So how much time would it take for it to get to an optimal capacity utilization? Because like if it's coming in Q2, I don't believe that it would like be ramped up immediately. So could you just share time lines in terms of capacity utilization we see in our new brownfield and greenfield facilities?
Yasir Rawjee
Yes, sure. So see, capacity utilization in the brownfield will be pretty rapid in terms of bringing it at the 80%, 90% level in a matter of 2 to 3 quarters because that's brownfield, that's an approved site inspected by FDA and other agencies. So that capacity will get taken up pretty quickly. As far as Solapur goes, we have done a fair amount of product mapping in Solapur. So we expect that in when Solapur starts off, we should start off with a robust 40% to 50% utilization and then probably take it up to 60%, 70% in the following year. So see, we have always been calibrated in terms of build
Q
I just wanted to understand the API segment as a whole, like what are the pricing and the volumes are they improving and how do we see that going forward?
Yasir Rawjee
So, see, there's a significant volume growth in all segments of our business. With respect to the pricing environment, I answered to an earlier question that we have not faced any major challenges with respect to pricing in most of our geographies because we have a newer portfolio. And so it's not that commoditized. So we don't get that much pressure on pricing. Although on the overall bucket, we do see an erosion of around 4.5% because of the some price reduction that we have to give on some of the products. So that's the overall sort of situation with respect to our portfolio. And the volume
Q
Most of my questions have been answered. But just on the asset turnover, do you think it has stabilized at 2.2, or do you foresee it going down further from here as other facilities ramp up?
Yasir Rawjee
So it would go down a little bit more because like we said, Solapur will be coming online soon and some of the brownfield capacity will also be coming in. But when you compare us to the industry, we are still, I would say, pretty much on top of the table there. Okay. So let's say, 2 is probably a reasonable level that one can expect? Or could it go down further from that? I mean it would temporarily go down below 2 as well, right? But it would come back up once the utilization picks up, like I explained earlier.
Q
Sir, we have seen R&D spends increasing consistently over the past few years as a percentage of sales. We have spoken about flow chemistry earlier. You're also talking about high potent API iron complexes as well as an evolving CDMO pipeline. Can you help us understand a bit more in detail as to where exactly your focus lies as far as R&D is concerned? And where do you see this R&D number as a percentage of sales settling over the next 2 to 3 years?
Yasir Rawjee
Alankar, the areas that you outlined are where we are focusing on R&D, and that's really going to drive the growth. As far as settling down, I don't think we'll cross 4%, right? We'll probably be at 4% in the next year or 2. And then it should settle down. I mean but then we needed to fire off on many cylinders here because the thing is that, that's how the growth will come, right? You mentioned all the areas. I don't need to repeat. I mean, you talked about flow chemistry, you talked about the CDMO side, and we are looking seriously into pellets and granules. That's also an area that we've st
Q
Sir, just one on CDMO, if you can talk about the Phase 3 project, if the runway continues and the ramp-up that you are expecting for fourth and fifth and also the new deals or pipeline you had on the CDMO piece please?
Yasir Rawjee
So CDMO, the fourth and fifth project have kicked in really nicely. There's some revival even on the earlier projects. And so we expect that CDMO will continue this momentum. As far as new projects go, we hope to close 2 new deals in the second half early second half of this year.
Q
Yes. A couple of questions. Firstly, if I look at the new launches, which probably have given the gross margins, if you can give some sense what percentage of revenue incrementally has come from the new launches, which happened in FY26. that's sort of a benchmark number or something you can give.
Yasir Rawjee
I don't know whether we'll be able to do that. I mean we do have a sense I mean we'll have to see, but I can't. Just to answer your question, as Dr. Yasir also explained earlier, new launches are not a very significant contributor to the top line revenue growth. They are new launches and the ramp-up will continue to happen on those products. It's not like they are contributing significantly to the growth. Okay. Got it. And if I look at the HP API pipeline building, obviously, it has built up very well last couple of years. That sort of contribution when you say will start coming in, will it be
Q
Sir, just on a financial question, just to understand, we are closing cash balance is just INR20 million. Mutual fund has increased by INR350 crores. Capital work in progress has also increased. So are we comfortable on the cash position? That's what I'm trying to understand.
Tushar Mistry
Cash position is about INR784 crores, including the investment in... Yes. Yes. That's what I said. And your working capital has already been paid for halfway through I suppose because of the INR540 crores capex we have to do. So we're just very comfortable on the cash position, right? Yes, absolutely. The entire capex will happen from internal accruals.
Q
Sir, just wanted to check, in the last call, we said that the CDMO 2 contracts will come in next 6 months like it was roughly June, July. But now this time, we are saying that it will come in the early second half of FY27. So we are expecting some delays in 2 CDMO contracts?
Yasir Rawjee
Not really expecting delays, but then I do want to moderate it a little bit. It may come in the first half also, a little later in the first half. But just to be on the safe side, we are saying it will happen on the early part of second half.
Q
I think we alluded to that in the opening comments around the fact that how we're looking at the business differently in terms of capital allocation after the changeover of the management and the promoter ownership. If you can probably just take a couple of minutes to sort of reflect on the journey since the time the ownership change happened to how the strategic priorities has the business, what have you been from a strategic perspective, what have you been doing for the last 3, 4 years? And now as you look forward from the base that we built out over the last 3, 4 years since ownership chang
Yasir Rawjee
Yes. I mean I'll take a little time, but yes, you had explained that. See, what was happening is in the earlier the pre-Nirma ownership, right, our focus was purely on portfolio, and we had to cherry pick the right kind of molecules so that the growth came as a result of that. There wasn't much scope to go laterally. So essentially, the R&D investment continued to be in picking the right molecules and taking them forward, which is helping us now for sure. And then the capex investment was again geared up to just ensure that whatever volume expansion happened as a result of overall volume growt
Q
Congratulations on a very good result. Could you help me with what is the revenue contribution from the geographies or at least the top 2 geographies, be it U.S. or Europe or any other geography? Could you help with percentage revenues?
Yasir Rawjee
So see, I mean, we have mature geographies that are contributing quite evenly. So if you look at India, Europe, Latin America, these geographies and even the U.S., right, they're contributing pretty significantly. The newest geography for us that has come in, in the last 4 to 5 years is Japan. And so that's relatively small compared to the others, but that's also growing quite well. But we are pretty evenly distributed across the geographies with respect to so if you look at the product selection again, this goes back to the answer I gave to Nitin Agarwal from DAM is that the selection of port
Speaking time
Yasir Rawjee
38
Moderator
16
Krishnendu Saha
10
Tushar Mistry
9
Ahmed Madha
6
Shubh Mehta
5
Yog Rajani
4
Sunil Kothari
3
Alankar Garude
3
Deepak Lalwani
3
Opening remarks
Soumi Rao
Good morning, everyone. I welcome you all to the earnings call of Alivus Life Sciences Limited for the quarter and financial year ended March 31, 2026. From Alivus Life Sciences, we have with us Dr. Yasir Rawjee, our MD and CEO; and Mr. Tushar Mistry, our CFO. Our Board has approved the results for the quarter ended March 31, 2026. We have released it to the stock exchanges and updated the website. Please note that the recording and transcript of this call will be available on the website of the company. Now I'd like to draw your attention to the fact that some of the information shared as part of this call, especially information with respect to our plans and strategy, may contain certain forward-looking statements and involve risks and uncertainties. These statements are based on current expectations, forecasts and assumptions that are subject to risks and which could cause actual results to differ materially from these statements depending upon the economic conditions, government po
Yasir Rawjee
Soumi, thank you. Good morning, everyone, and welcome to our Q4 and FY26 earnings call. I am pleased to share that this year marks an important milestone in the journey of Alivus Life Sciences as we complete 2 full years with Nirma as our promoter. During this period, we transitioned and strengthened the foundation of our business as we position the company for its next phase of sustainable growth. The partnership with Nirma brought enhanced financial strength, long-term stability and greater flexibility to invest in future growth opportunities. Our focus on building a more diversified and resilient business model remained while we have accelerated strengthening our product portfolio, expanding capabilities and steadily improving the overall quality of business. During this period, we have faced some headwinds like uncertainties around tariffs and regulatory shifts. These factors continue to disrupt supply chain, elevated logistics and energy costs and created uncertainty across global
Tushar Mistry
Thank you, Dr. Yasir. Good morning, everyone. Welcome to our Q4 and FY26 earnings call. Adding to Dr. Yasir's commentary, I would like to share a few insights on our performance over the last 2 years, particularly how our growth profile and profitability have meaningfully improved. Our growth has become more broad-based and importantly, our dependence on any single brand is gradually reducing. To illustrate these, while our GPL revenues have remained relatively stable over the past 2 years, our non-GPL revenues have grown at a CAGR of 7.5% during the same period. This shift in mix is also reflected in our profitability with margins improving from 28% in FY24 to 34% in FY26. This clearly demonstrates the new business we are adding is more profitable and value accretive in nature. With ongoing capex and continued investments in new technologies and products, we remain confident in our ability to sustain this margin trajectory going forward. Now I would like to highlight the key performan
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