Alivus Life Sciences Ltd (ALIVUS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 FY '27 Earnings Conference Call of Alivus Life Sciences Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Saumi Rao from Alivus Life Sciences. Thank you, and over to you, ma'am.
Saumi Rao (Alivus Life Sciences Ltd): Good morning, everyone. I welcome you all to earnings call of Alivus Life Sciences Limited for the quarter ended September 30th, 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 September 30th, 2026. We have released it to the stock exchanges and updated the website. Please note that the recording and the transcript of this call will be available on the website of the company. Now I would 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 strategies, may contain certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, and assumptions that are subject to risk, which could cause actual results to differ materially from these statements, depending upon the economic conditions, government policies, and other incidental factors. Such statements should not be regarded by recipients as substitute of their own judgment. The company undertakes no obligation to update or revise any forward-looking statement. Our actual results may differ materially from those expressed in or implied by these forward-looking statements. With that, I invite Dr. Yasir Rawjee to say a few words. Thank you, and over to you, Doctor.
Yasir Rawjee (Alivus Life Sciences Ltd): Thank you, Saumi. Good morning, everyone, and welcome to our Q2 earnings call. Let me begin by extending our warm wishes for the upcoming festivities. Now turning to our performance, we are pleased to report another quarter of healthy execution, reflecting the strength of our underlying business and a significant improvement in profitability. During quarter two, revenue from operations stood at 682 crores, up 16% year-on-year, driven by new product launches and a healthy demand across our existing portfolio. Our non-GPL business grew 20.8% year-on-year and now contributes 79% of our overall revenues. Performance remains healthy across Europe, Japan, North America, LATAM, and ROW markets. Recently launched products continue to gain traction
Yasir Rawjee (Alivus Life Sciences Ltd): FY27, we expect the business to follow its historical trend with a stronger contribution in H2 and expect full-year revenues to be around 700 to 750 crores. Our generic API business grew 11% year-on-year in Q2 supported by healthy demand across regulated and emerging markets. The broader product portfolio continues to strengthen our presence across these markets. Our CDMO business delivered a robust performance during the quarter with revenue climbing to Rs 50 crores, up 32.3% quarter-on-quarter and nearly 80% year-on-year. This was driven by improved traction across existing projects and was complemented by new projects. We continue to see CDMO as an important growth opportunity as our project portfolio progresses. More importantly, we are seeing a clear improvement in the quality of our portfolio that is impacting our earnings. A better revenue mix and improved operating efficiencies are translating into stronger underlying profitability. Coming to our expansion plans, the Solapur facility continues to progress as planned and Phase 1 is expected to become operational in Q3 of FY27. Construction of our R&D center at Taloja is also progressing well and we hope to be on schedule early next year. Our pipeline remains robust with over 630 DMF and CEP filings globally as on September 30th, 2026. Our high-potent API portfolio continues to advance with 30 new products in the active grid, representing a total addressable market of $86 billion. Of these, 14 products have been validated, seven are in advanced stages of development, and the remaining nine products are progressing through lab development. As we move into the second half of FY27, we remain mindful of the evolving external environment. At the same time, the continued momentum in our core business, progress across CDMO, and the depth of our development pipeline provide us with confidence in our growth outlook. So, accordingly, we reiterate our FY27 revenue growth guidance of 10% to 12%. We are confident of delivering EBITDA margins in the 35% to 36% range in FY27. Overall, our priorities remain clear: executing on our growth strategy, scaling our portfolio, and strengthening our presence across key global markets. We believe that these initiatives provide a solid foundation for sustainable growth in the future. So, with this, I now turn the floor to our CFO, Mr. Tushar Mistry, who will walk you through our financial performance for the quarter in depth. Over to you, Tushar.
Tushar Mistry (Alivus Life Sciences Ltd): Thank you, Dr. Yasir. Good morning, everyone. Welcome to our Q2 FY27 earnings call. I would like to take a moment to highlight the key performance updates for the quarter and half-year ended 30th September 2026. For quarter two FY27, revenue from operations stood at Rs 682 crores, a growth of 16% year-on-year. Gross profit for the quarter was Rs 439 crores, up 29.5% year-on-year. Gross margins for the quarter stood at 64.4%, up 420 basis points quarter-on-quarter and 670 basis points year-on-year. This was on account of a favorable product mix and recent launches. EBITDA for the quarter was at Rs 285 crores, up 47% year-on-year. EBITDA margins for the quarter were at 41.8%, up 520 basis points quarter-on-quarter and 880 basis points year-on-year. Excluding the one-time income, adjusted EBITDA margin was approximately 39.5%, reflecting improved operating efficiencies. PAT for the quarter stood at Rs 197 crores, with PAT margins at 28.9%, up 390 basis points quarter-on-quarter and 680 basis points year-on-year. For first half FY27, revenue from operations stood at Rs 1,322 crores, a growth of 11.1% year-on-year. Gross profit for H1 was at Rs 825 crores, up 22.9% year-on-year. Gross margins for H1 stood at 62.3%, up 590 basis points year-on-year. EBITDA for first half was at Rs 519 crores, up 38.4% year-on-year.
Tushar Mistry (Alivus Life Sciences Ltd): for first half was 35.3%, up 780 basis points year on year. And PAT for H1 stood at Rs. 357 crores with PAT margins at 27%, up 590 basis points year-on-year. Looking at the therapeutic mix, CVS and CNS continued to lead the growth during the quarter with both therapies contributing 50% to the top line. Chronic therapies contributed 67% to the top line in Q2 FY '27. R&D expenditure for Q2 FY '27 was Rs. 27 crores, which was 4% of our sales. For H1 FY '27, it was Rs. 51 crores at 3.9% of our sales. On balance sheet and cash flow movement, CapEx for the quarter was Rs. 105 crores and for the first half, it was Rs. 190 crores. We continue to remain a net debt-free company and we have generated a strong free cash flow of Rs. 270 crores leading to cash and cash equivalents, including short-term investments, of Rs. 1,012 crores as of September 30th, 2026. Looking ahead, healthy demand trends and enhanced visibility for H2 FY '27 provide us with confidence in sustaining our growth trajectory through the remainder of the year. With that, let us open the floor for Q&A.
Moderator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ahmed Madha with Unifi Capital. Please go ahead.
Ahmed Madha (Unifi Capital): Yeah. Thanks for the opportunity, and congratulations on a very good set of numbers Dr. Prowji and the team. first, just to understand the nature of one-off we mentioned, can you explain it I believe the calculation says it's about 24, 25 crores. Can you ex- can you explain the nature of the one-off income?
Tushar Mistry (Alivus Life Sciences Ltd): So, there are two components here. There's a validation supply of a complex product, okay, that had very high margins, okay, and contributed to it, plus plus there there was some income accrual which was done in this quarter, which is a one-off kind from one of the customers that we would be getting, which is one-off in nature.
Ahmed Madha (Unifi Capital): Understood, sir. So, is it fair to assume that this gross margin still should sustain above 60 percentage, which we have also exhibited last two quarters? Obviously, current quarter was 64% plus. Is that fair way to look at it?
Tushar Mistry (Alivus Life Sciences Ltd): Yeah, we should we should expect it around that you know, going forward.
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