Release Date: August 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Alivus Life Sciences Ltd (BOM:543322) reported a year-on-year revenue growth of 2.2%, driven by a 14.5% increase in the non-GPL business.
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The company’s gross margin improved by 400 basis points to 55.1%, attributed to rationalized input costs and operational efficiency.
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The EBITDA margin increased by 210 basis points to 30.1%, reflecting better gross margins.
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Alivus Life Sciences Ltd (BOM:543322) remains debt-free and generated strong cash flow from operations, with cash and cash equivalents of INR 660 crore.
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The company received successful outcomes from US FDA inspections for its facilities, enhancing its compliance and operational credibility.
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The GPL business experienced a significant year-on-year decline of 22%, impacting overall revenue growth.
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The CDMO business remained subdued during the quarter, with commercialization expected only in the second half of the year.
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Pricing pressures are anticipated to keep revenue growth in the high single digits, despite mid-teens volume growth guidance.
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The company’s R&D expenditure increased, which may impact short-term profitability.
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There is uncertainty regarding the timeline for product commercialization from the Solapur facility, which could delay revenue contributions.
Q: Can you provide an update on the Solapur facility and its expected contribution to the top line? A: Dr. Yasir Raji, MD and CEO: The Solapur facility is expected to come online in 2024. We plan to file products in the first half of next year to trigger inspections. Initially, we will focus on ROW (Rest of World) business, which will start contributing to the top line in the first half of next year.
Q: How do you see the business mix between Glenmark and non-Glenmark evolving, and what are your growth expectations? A: Dr. Yasir Raji, MD and CEO: We expect the GPL business to grow, and we are confident in achieving high single-digit growth overall. The business is not quarter-on-quarter, and demand patterns can vary. We anticipate growth in both GPL and non-GPL segments.
Q: Can you elaborate on the progress and commercialization timeline for your high-potent API pipeline? A: Dr. Yasir Raji, MD and CEO: Of the 26 high-potent products, 12 have firm customer interest and are being validated. Commercial activity is expected to start from late FY27 as patents in some early markets begin to expire.