Alivus profit rises 14.65% YoY as Q4 margin slips sequentially
Revenue grew 6.09% year on year, but the quarter's margin fell as costs grew faster sequentially and other income remained material.
Filed 14 May 2026, 19:34 IST · after market close · Alivus Life Sciences Ltd (ALIVUS)
Key takeaways
- Standalone net profit rose 14.65% year on year, helped by a 1.22 percentage-point reduction in the tax rate.
- Operating margin fell 3.24 percentage points sequentially to 31.13% as expenses grew 7.47% against 2.41% revenue growth.
- Other income contributed 10.56% of pre-tax profit, making reported earnings less purely operational.
Price around the results
Year-on-year growth stayed intact
Alivus reported standalone revenue growth of 6.09% year on year, while operating profit grew 8.11%; revenue growth therefore translated into a 0.58 percentage-point margin improvement. Net profit grew faster at 14.65%, supported by a lower tax rate and a sharp rise in other income. Management said Q4 performance was broad-based across regions and that the CDMO business completed its planned second-half turnaround, ending FY26 with 18% year-on-year growth.
Sequential margin compression reverses recent gains
Revenue increased 2.41% sequentially, but expenses rose 7.47%, causing operating margin to narrow 3.24 percentage points. This reversed the margin expansion from 28.63% in Q1FY26 to 34.37% in Q3FY26, leaving Q4FY26 at 31.13%. Other income accounted for 10.56% of pre-tax profit, while the sequential tax-rate increase was limited to 0.36 percentage points.
Margin remains above the healthcare peer median
Alivus's 31.13% operating margin was 7.75 percentage points above the 23.38% median for the 48 healthcare peers that had reported the same quarter. The comparison provides some cushion despite the sequential deterioration, but the quarter's cost growth was notably faster than revenue growth.
Management points to products and capacity
Management said it expects high single-digit revenue growth in FY27 with margins sustained above 30%, supported by improving operating leverage and a higher contribution from new products. The company said it plans to add approximately 100 KL at Ankleshwar and 160 KL at Dahej in Q2FY27, while Solapur's planned additions include approximately 350 KL in Q2FY27 and 115 KL in Q3FY27. Management also said the company acquired land in Taloja for an R&D centre focused on complex chemistry and oncology research.
Initial stock reaction was milder than its usual move
The stock fell 1.83% on the first trading day after the results and was down 2.36% after five sessions, underperforming the market by 2.48% over five sessions. That initial decline was smaller than the stock's 3.49% median absolute move after its last eight results, during which it rose three times and fell five times.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹689 cr | ₹673 cr | +2.41% | +6.09% |
| Other income | ₹23 cr | ₹-12 cr | — | +125.77% |
| Expenses | ₹475 cr | ₹442 cr | +7.47% | +5.20% |
| Operating profit | ₹215 cr | ₹231 cr | -7.24% | +8.11% |
| Operating margin (%) | 31.13% | 34.37% | — | — |
| Interest | ₹1 cr | ₹1 cr | -12.08% | +3.97% |
| Depreciation | ₹20 cr | ₹20 cr | +2.75% | +26.49% |
| Profit before tax | ₹216 cr | ₹198 cr | +8.78% | +12.81% |
| Tax | ₹53 cr | ₹48 cr | +10.41% | +7.53% |
| Net profit | ₹163 cr | ₹150 cr | +8.25% | +14.65% |
| EPS (₹) | ₹13.23 | ₹12.25 | +8.00% | +14.35% |
Operating margin of 31.13% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.83% | -1.64% |
| Next session | -0.83% | — |
| 5 sessions | -2.36% | -2.48% |
| 15 sessions | -5.84% | — |
| 30 sessions | +8.68% | — |
Volume on the results session was 1.82× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q4FY26 performance was driven by broad-based momentum across regions.
- The CDMO business delivered the planned turnaround in the second half and closed FY26 with 18% year-on-year growth.
Guidance & outlook
- For FY27, Alivus expects high single-digit revenue growth with margins sustained above 30%.
- The FY27 outlook is supported by improving operating leverage and a rising contribution from new products.
Expansion
- Ankleshwar is planned to add approximately 100 KL of brownfield API/intermediate capacity in Q2 FY27.
- Dahej is planned to add approximately 160 KL of brownfield API capacity in Q2 FY27.
- Solapur's greenfield Phase 1 will add approximately 115 KL of API and intermediate capacity in Q3 FY27.
- Solapur's greenfield Phase 1.1 will add approximately 350 KL of API and backward integration capacity in Q2 FY27.
- Solapur's Phase 2 is planned to add approximately 535 KL of capacity in FY28.
New products
- The strategy includes new product launches in the Gx API business and launches over the next three years.
- The company plans new launches in the next three years.
New initiatives
- The company has acquired land in Taloja to establish an R&D centre focused on complex chemistry and oncology research.
- The company is building API++ technology platforms and adopting flow chemistry in manufacturing.
Problems & risks
- The GPL business de-grew by 4.9% during FY26.
What to watch
- Whether operating margin holds above 30% as management said it expects for FY27.
- Whether the next quarter's expense growth moderates from the 7.47% sequential increase.
- Whether other income remains near its 10.56% share of pre-tax profit.