Mukul Agrawal Makes Fresh Entry: Buys 7.29 Lakh Shares of This Pharma Stock; Helios Mutual Fund Also Invests

Alivus Life Sciences is expanding its portfolio of high-value active pharmaceutical ingredients, or APIs, while building capacity for backward integration and contract development and manufacturing organisation, or CDMO, opportunities. The API maker reported a sharp improvement in profitability in the second quarter of FY27, with revenue growth accompanied by a record margin performance.

Revenue from operations rose 16 per cent YoY to Rs 682 crore in the September quarter. Earnings before interest, Tax, depreciation and amortisation, or EBITDA, increased 47.0 per cent to Rs 285.1 crore, while profit after tax, or PAT, grew 51.3 per cent to Rs 196.8 crore.

EBITDA margin expanded by 880 basis points YoY and 520 basis points QoQ to a record 41.8 per cent. PAT margin rose to 28.9 per cent, up 680 basis points YoY and 390 basis points QoQ. The pace of profit growth significantly exceeded revenue growth, reflecting a favourable product mix, contributions from recent launches and operating leverage.

The company said its non-GPL business, a category that now forms the larger part of its revenue base, grew 20.8 per cent YoY. Demand remained healthy across key markets and CDMO activity picked up meaningfully during the quarter. Management, however, indicated during its earnings interaction that the exceptional quarter included high-margin validation supplies for a complex product and a one-time customer-related income accrual. That makes the sustainability of the peak quarterly margin an important factor to monitor.

For the first half of FY27, revenue rose 11.1 per cent YoY to Rs 1,322.4 crore, while EBITDA increased 38.4 per cent to Rs 519.2 crore. The half-year EBITDA margin improved by 780 basis points YoY to 39.3 per cent. PAT rose 41.9 per cent to Rs 356.9 crore.

Free cash flow stood at Rs 270.2 crore during the first half, taking cash and cash equivalents, including short-term investments, to Rs 1,011.6 crore as of September 30, 2026. The debt-free balance sheet supports Construction at Solapur, where Phase 1 is expected to be completed in Q3 FY27 and Phase 2 in Q4 FY27. The facility is initially intended to strengthen backward integration before its wider API and CDMO potential is realised.

As of 9:45 am on November 9, 2026, Alivus Life Sciences shares were trading at Rs 1,525.95, up 3.07 per cent from the previous close. The stock has gained 61.02 per cent over one year, compared with a 0.55 per cent decline in the BSE 500 over the same period, indicating substantial outperformance. At 28.62 times trailing 12-month earnings and 19.11 times enterprise value to EBITDA, the market price reflects expectations of sustained margin strength and successful execution of the expansion pipeline.

Ace Investor Mukul Agrawal Makes Fresh Entry Into This Pharma Stock; Helios Mutual Fund Also Buys Shares

Shares of Alivus Life Sciences (formerly Glenmark Life Sciences) witnessed significant institutional activity on November 6, 2026, as promoter Nirma Limited sold 36.80 lakh shares, representing a 2.99 per cent stake, through open-market transactions. The sale included 28.46 lakh shares at Rs 1,370 apiece and 8.34 lakh shares at Rs 1,422.29. Following the transaction, Nirma's shareholding declined from 74.73 per cent to 71.74 per cent. The key highlight was the entry of ace investor Mukul Agrawal-backed Param Capital, which purchased 7,29,729 shares at Rs 1,370 each, amounting to nearly Rs 100 crore. Other prominent buyers included Bandhan Mutual Fund, Helios Mutual Fund, Norges Bank and Setu Securities. The sizeable institutional purchases amid promoter stake dilution have brought Alivus Life Sciences into focus.

What This Means for Investors

The quarter reinforces that Alivus is moving towards a more profitable portfolio mix, led by recent launches, faster-growing non-GPL products and improving CDMO demand. The 39.3 per cent EBITDA margin for H1 FY27 is materially higher than the 33.6 per cent margin reported in FY26. Strong free cash flow and more than Rs 1,000 crore of cash and short-term investments give the company financial capacity to fund Solapur, the new Taloja research centre and product development without debt dependence.

The result is supportive for the longer-term business case, but the record quarterly margin should not be treated as entirely recurring. Management has acknowledged one-off benefits, while new-product margins typically normalise over time. Sustaining profitability will depend on replenishing launches, managing a potentially stronger lower-margin GPL mix in the second half and ramping Solapur efficiently. The current valuation leaves limited room for execution setbacks, making the conversion of the regulatory pipeline, capacity expansion and CDMO opportunities into durable earnings the key medium-term test.

Disclaimer: The article is for informational purposes only and not investment advice.