Alivus lifts margin despite a 7.07% sequential revenue drop
Standalone net profit rose 31.72% year on year as expenses stayed flat and other income remained a material contributor to pre-tax profit.
Filed 30 Jul 2026, 18:43 IST · after market close · Alivus Life Sciences Ltd (ALIVUS)
Key takeaways
- Standalone operating margin rose 4.43 percentage points year on year as revenue grew 6.41% while expenses fell 0.20%.
- Standalone net profit rose 31.72% year on year, but other income contributed 10.56% of pre-tax profit.
- The 33.06% operating margin was 5.59 percentage points above the 27.47% median for 17 reporting healthcare peers.
Price around the results
Year-on-year profit growth outweighed the sequential slowdown
Alivus reported standalone revenue growth of 6.41% year on year, while operating profit rose 22.87% and net profit increased 31.72%. Sequentially, revenue fell 7.07%, but net profit declined only 1.59% because expenses fell faster, at 9.67%, and operating profit slipped 1.31%. EPS rose 31.58% year on year to Rs 13.04.
Lower costs expanded the margin, with other income still material
Expenses fell 0.20% year on year against 6.41% revenue growth, lifting operating margin by 4.43 percentage points. Sequentially, expenses fell 9.67% versus a 7.07% revenue decline, supporting a 1.93 percentage-point margin improvement. Other income accounted for 10.56% of pre-tax profit, while the tax rate fell 0.86 percentage points year on year; interest expense rose 4.80%.
Margin recovered from Q4 but remains below the Q3 peak
Operating margin moved from 28.63% in Q1FY26 to 30.47% in Q2FY26 and 34.37% in Q3FY26, before falling to 31.13% in Q4FY26 and recovering to 33.06% now. This is a sequential recovery rather than a third straight quarter of decline. Alivus also remained above the 27.47% median operating margin among 17 healthcare peers that had reported.
Management outlined capacity additions and pipeline work
Management said it expects FY27 revenue growth of 10%-12% while sustaining EBITDA margins in the 30%-32% range. The company said approximately 160 KL of API capacity is planned at Dahej and approximately 350 KL of API and backward-integration capacity at Solapur Phase 1 by Q3 FY27; further additions are planned at Ankleshwar and Solapur. The presentation said five synthetic small molecules were added to the development grid, while cumulative DMF and CEP filings reached 617 as of June 30, 2026.
The filing came after market close
The results were filed after market close, so there is no same-session market reaction to assess. After the last eight results, the stock rose twice and fell six times, with a median absolute move of 2.92%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹640 cr | ₹689 cr | -7.07% | +6.41% |
| Other income | ₹22 cr | ₹23 cr | -1.67% | +149.44% |
| Expenses | ₹429 cr | ₹475 cr | -9.67% | -0.20% |
| Operating profit | ₹212 cr | ₹215 cr | -1.31% | +22.87% |
| Operating margin (%) | 33.06% | 31.13% | — | — |
| Interest | ₹1 cr | ₹1 cr | +0.00% | +4.80% |
| Depreciation | ₹21 cr | ₹20 cr | +1.93% | +20.69% |
| Profit before tax | ₹212 cr | ₹216 cr | -1.66% | +30.21% |
| Tax | ₹52 cr | ₹53 cr | -1.86% | +25.81% |
| Net profit | ₹160 cr | ₹163 cr | -1.59% | +31.72% |
| EPS (₹) | ₹13.04 | ₹13.23 | -1.44% | +31.58% |
Operating margin of 33.06% compares with a Healthcare sector median of 27.47% across 17 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Cumulative DMF and CEP filings reached 617 as of June 30, 2026.
Guidance & outlook
- The company expects FY27 revenue growth of 10%-12% while sustaining EBITDA margins of 30%-32%.
Expansion
- Ankleshwar is planned to receive approximately 100 KL of additional API and intermediate capacity by Q4 FY27.
- Dahej is planned to receive approximately 160 KL of additional API capacity by Q3 FY27.
- Solapur Phase 1 is planned to add approximately 350 KL of API and backward-integration capacity by Q3 FY27.
- Solapur Phase 2 is planned to add approximately 115 KL of API and intermediate capacity by Q4 FY27.
- Solapur Phase 3 is planned to add approximately 535 KL of capacity by FY29.
New initiatives
- The company added five synthetic small molecules to its development grid during the quarter.
- The new Taloja R&D centre will focus on flow chemistry, complex products, particle engineering, oncology research and green chemistry.
What to watch
- Whether standalone operating margin holds above 33.06% after the 1.93 percentage-point sequential improvement.
- Whether FY27 revenue growth tracks management's 10%-12% range while EBITDA margin remains within 30%-32%.
- Progress against management's planned approximately 160 KL Dahej addition and approximately 350 KL Solapur Phase 1 addition by Q3 FY27.