Alivus margin jumps 8.41 points as costs lag revenue growth
Standalone net profit rose 51.31% year on year, though other income still contributed 7.60% of pre-tax profit.
Filed 29 Oct 2026, 19:21 IST · after market close · Alivus Life Sciences Ltd (ALIVUS)
Key takeaways
- Standalone operating margin expanded 8.41 percentage points year on year to 38.88% as revenue grew 15.99% while expenses rose only 1.95%.
- Standalone net profit rose 51.31% year on year to Rs 196.75 cr, with the tax rate lower by 0.43 percentage points at 24.90%.
- Sequential operating margin improved 5.82 percentage points to 38.88%, extending the margin recovery from 31.13% in Q4FY26 and 33.06% in Q1FY27.
Price around the results
Revenue growth translated into a sharp profit lift
Alivus reported standalone revenue growth of 15.99% year on year to Rs 681.99 cr, while operating profit grew 48.01% to Rs 265.19 cr. The gap between revenue and expense growth drove the operating margin up 8.41 percentage points to 38.88%. Net profit increased 51.31% to Rs 196.75 cr.
Costs supported the margin expansion, but other income mattered
Expenses rose 1.95% year on year, far below the 15.99% increase in revenue, and fell 2.78% sequentially even as revenue grew 6.49%. The tax rate declined 0.43 percentage points year on year, providing a modest additional lift to net profit; interest expense was almost unchanged. Other income accounted for 7.60% of pre-tax profit, so not all of the earnings increase came from operations.
Margin recovery continued and remained well above healthcare peers
Operating margin has risen for a second consecutive quarter, from 31.13% in Q4FY26 to 33.06% in Q1FY27 and 38.88% in Q2FY27. Alivus was 19.22 percentage points above the 19.66% median operating margin of the 26 Healthcare peers that had reported the quarter. The results were filed after market close, so there is no current-session market reaction to assess.
Management outlined additions across Ankleshwar, Dahej and Solapur
Management said the company plans new launches over the next three years and added two synthetic small molecules to its development grid during Q2FY27. It said a brownfield addition of approximately 160 KL is planned at Dahej in Q3FY27, while Solapur's greenfield Phase 1 is expected to add approximately 340 KL in Q3FY27. Management also said additions of approximately 100 KL at Ankleshwar and 125 KL at Solapur Phase 2 are planned in Q4FY27.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹682 cr | ₹640 cr | +6.49% | +15.99% |
| Other income | ₹20 cr | ₹22 cr | -11.07% | +35.33% |
| Expenses | ₹417 cr | ₹429 cr | -2.78% | +1.95% |
| Operating profit | ₹265 cr | ₹212 cr | +25.26% | +48.01% |
| Operating margin (%) | 38.88% | 33.06% | — | — |
| Interest | ₹1 cr | ₹1 cr | +0.00% | -0.76% |
| Depreciation | ₹22 cr | ₹21 cr | +5.97% | +18.39% |
| Profit before tax | ₹262 cr | ₹212 cr | +23.44% | +50.44% |
| Tax | ₹65 cr | ₹52 cr | +25.08% | +47.88% |
| Net profit | ₹197 cr | ₹160 cr | +22.91% | +51.31% |
| EPS (₹) | ₹16.02 | ₹13.04 | +22.85% | +51.13% |
Operating margin of 38.88% compares with a Healthcare sector median of 19.66% across 26 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company plans new launches in the next three years.
Expansion
- A brownfield addition of approximately 100 KL is planned at Ankleshwar in Q4 FY27.
- A brownfield addition of approximately 160 KL is planned at Dahej in Q3 FY27.
- Solapur's greenfield Phase 1 will add approximately 340 KL in Q3 FY27.
- Solapur's greenfield Phase 2 will add approximately 125 KL in Q4 FY27.
- Solapur's greenfield Phase 3 is planned to add approximately 535 KL in FY29.
New products
- The company added two synthetic small molecules to its development grid during Q2 FY27.
New initiatives
- The company added two synthetic small molecules to its development grid during the quarter.
- The new Taloja R&D centre will enhance capabilities in flow chemistry, complex products, particle engineering, oncology and green chemistry.
- The company plans to build a platform for API++ technologies.
What to watch
- Whether standalone operating margin holds above 38.88% after the 5.82-percentage-point sequential improvement.
- Whether other income remains near 7.60% of pre-tax profit as operating earnings develop.
- Progress against management's stated approximately 160 KL Dahej and 340 KL Solapur Phase 1 additions planned for Q3FY27.