In conversation with Pranav Amin, Managing Director, Alembic Pharmaceuticals Limited

Q1. Alembic delivered a strong start to FY27 with 26 per cent revenue growth, led by a 49 per cent rise in the U.S. business, prompting an upgrade to the full-year outlook. How much of this momentum reflects structural gains in the portfolio versus one-off launch opportunities, and what gives you confidence that the growth trajectory is sustainable?

The momentum for the quarter was broad-based, contributed by multiple levers, and was not dependent on a single launch or one geography. The U.S. business had a strong quarter, supported by new launches and volume growth, but the overall performance was broad-based across API, Ex-US and India as well. This gives us confidence that the improvement reflects a stronger portfolio mix, better execution and the benefit of investments made over the past few years.

That said, we are mindful that quarterly performance can include timing benefits from launches and market opportunities. Our focus is, therefore, on sustaining growth through consistent launches, supply reliability, disciplined execution and continued portfolio expansion. Based on the current momentum, we remain confident of delivering healthy growth for FY27, with consolidated growth trending in the mid-teens range.

Q2. Excluding bosutinib, the U.S. generics business still grew over 20 per cent, largely driven by new launches and market share gains despite continued pricing pressure. As competition intensifies, what capabilities have become your biggest differentiator in consistently winning share?

In the U.S., the key differentiator is not just the number of launches, but the ability to execute consistently in a competitive and price-sensitive market. Our strengths are backed by capabilities built over the years from a combination of product selection, consistent focus on quality, supply reliability, a sustained track record of regulatory approvals and long-standing relationships with large customers. Even excluding bosutinib, the business delivered strong growth, which reflects market share gains across the broader portfolio. As competition intensifies, our focus is on building a more differentiated U.S. portfolio, improving launch execution and maintaining service levels that help us remain relevant to customers in a challenging pricing environment. This strong foundation has enabled us to build a diversified growth platform across India, the U.S., Ex-US and API.

Q3. Alembic continues to invest around 9 per cent of revenue in R&D, with increasing focus on peptides and other complex products, even as development costs rise. How has your framework for evaluating R&D investments evolved, and where do you see the highest long-term returns emerging from this pipeline?

Our R&D framework has evolved from a volume-led approach to a more value-led approach. We are increasingly prioritising differentiated opportunities where development complexity is higher but the potential for sustainable value creation is also better. This includes NCE-1, Para IV, complex injectables, peptides and other differentiated dosage forms. We continue to evaluate opportunities through a disciplined lens, looking at development cost, technical complexity, addressable market, competitive intensity, probability of approval and expected risk-adjusted returns. This robust filings-and-development engine is designed to fuel long-term growth, value creation and better returns.

Q4. The company has invested significantly in manufacturing over the past few years and is now focusing on debottlenecking and improving asset utilisation rather than large capex. At what stage do you believe the manufacturing network can deliver meaningful operating leverage without requiring another major investment cycle?

The major capacity creation and investment phase is largely behind us, and we are now positioned to scale on the back of the investments already made. Over recent years, we have built a multi-format platform across OSD, ophthalmic, injectables and API. With the platform created, the focus now moves to monetisation levers, using filings and approvals to fill capacity, improving mix towards specialty, and adding in-licensed and branded specialty products. Operating leverage should build progressively with better visibility of filings converting into approvals, launches filling capacity and product mix moving towards more differentiated and specialty-led opportunities. We are also focused on debottlenecking, productivity improvement and better fixed-cost absorption. We are not looking at this as a single-year event, but as a steady operating improvement as volumes and mix improve across the network.

Q5. While the U.S. business remains the largest growth driver, the India branded business is being repositioned towards chronic therapies, specialty brands and higher prescription quality. How do you intend to accelerate growth in India without compromising profitability in an increasingly competitive domestic market?

Our India strategy centres on improving the quality of growth, accelerating our specialty and chronic portfolio to strengthen doctor relevance, sustaining strong momentum in animal health, and sharpening field-force productivity through better targeting and execution to ramp up prescription conversion. This approach allows us to accelerate growth while remaining disciplined on profitability. We are sharpening doctor targeting, improving execution at the field level and focusing on segments where our brands can build relevance and durability. The objective is to create a more profitable and sustainable India business with a healthier therapy mix and stronger prescription conversion.

Q6. Your API business reported 33 per cent growth on the back of strong demand and execution, even as the industry continues to face pricing and supply chain challenges. How do you plan to strengthen the API franchise beyond volume growth and build a more resilient, higher-value business?

Q1 growth in the API business is on a lower base compared to the previous year's first quarter. The API business has delivered strong volume momentum despite persistent pricing pressure. We are now evolving the franchise into a higher-value, more resilient business. Key levers include broadening R&D to serve non-captive customers, expanding our geographic footprint, and moving up the value chain into specialty, complex APIs and development projects. Together, these position the franchise for value-accretive growth that is less exposed to commoditised pricing.

Q7. Over the next three to five years, Alembic is investing simultaneously in complex generics, peptides, specialty brands, manufacturing capabilities and global expansion. Which of these strategic bets do you believe has the greatest potential to reshape the company's earnings profile, and what execution risks deserve the closest attention?

We have multiple strategic levers to accelerate growth, but the most important is the R&D-led shift towards injectables, complex generics, peptides and differentiated dosage forms. This is complemented by improving portfolio quality in India through the rapid scale-up of animal health and a stronger chronic mix; geographic and portfolio expansion across our Ex-US business; and a more differentiated U.S. portfolio, led by the scale-up of branded specialty alongside continued generics volume momentum. This will be supported by operating leverage from the manufacturing investments already made and disciplined execution to drive profitable growth. That said, the key risks to watch are ongoing pricing pressure, regulatory timelines, and broader macroeconomic volatility driven by global geopolitical uncertainty. Our focus is to manage these risks through disciplined product selection, strong execution, quality compliance and careful capital allocation.