Alivus Life Sciences (formerly Glenmark Life Sciences) saw sales to its largest customer, former parent Glenmark Pharmaceuticals, fall 53% in Q1. Total revenue still grew 6%, and profit grew 32%.
The rest of the business grew 26.5%, mostly on volume, and margins hit a record. But to meet its own full-year guidance, Alivus now needs the best three quarters in its history. Our notes from the presentation and the concall are below, but before that:
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₹880 cr cash, zero debt, ₹540 cr capex: Alivus Life’s next phase
Q1 FY27 in numbers
Other income flatters the margin.
- Alivus counts other income in EBITDA, and other income jumped to ₹22.4 cr from ₹9.0 cr. Management also said forex gains helped margins.
- Excluding other income, the operating EBITDA margin was about 33.1%, against about 28.6% a year ago.
- That is still a strong improvement, just smaller than the headline 650 bps.
Two businesses moving in opposite directions
- Sales to Glenmark down 53% YOY in Q1 and share of revenue down to 11% from 25%
- Management called the decline “inventory rationalization”: Glenmark is using up stock it already holds.
- Q4 FY26 was unusually strong at ₹243.9 cr, so Glenmark had stocked up.
- Alivus supplies Glenmark with more than 50 commercial products. The CEO said that in the worst case, Glenmark sales will be flat for FY27.
Non-GPL growth is genuine volume growth.
- Of the 26.5% growth, about 7 percentage points came from a weaker rupee.
- In constant currency, growth was about 20%: volumes rose 21–22% while prices fell 1–2%.
- New product launches drove it, with growth across all regions.
- Management confirmed that non-GPL business earns higher margins than Glenmark business.
- So the record margin is partly because Glenmark’s share collapsed.
- That also means margins should come down when Glenmark orders return
The guidance math
- Guidance: FY27 revenue growth of 10–12%, weighted toward the second half, with EBITDA margins of 30–32%.
- What it requires: that implies ₹2,807–2,858 cr of revenue. With ₹640 cr done, the next three quarters must average ₹722–739 cr each. The best quarter so far was ₹689 cr (Q4 FY26).
- “Flat” Glenmark is a big ask: Glenmark bought about ₹742 cr in FY26. To stay flat after Q1’s ₹72 cr, it needs about ₹670 cr over Q2–Q4, roughly 14% more than in the same three quarters last year.
- Why the margin guidance is below Q1: the CEO said margins “even up to 34%” are possible, but the war’s effect on raw-material costs (solvents first, now key starting materials) makes him cautious. The CFO added that a Glenmark recovery would pull steady-state margins to about 34%.
Balance sheet and pipeline
- Cash and debt: free cash flow was ₹90 cr in Q1. Cash and investments total ₹880 cr, with no debt.
- Capex: about ₹540 cr planned for FY27 (₹85 cr spent in Q1).
- Acquisitions: the company is looking for synergistic acquisitions: new technology platforms or pipelines, not extra capacity.
- R&D: spending was 3.7% of sales, heading to about 4%. The company has filed 617 drug master files (DMFs) and their European equivalents (CEPs).
- Highly potent APIs (29 products, about $82 bn market): 13 are validated. Revenue starts with patent expiries at the end of calendar 2027, so it is mostly an FY28 story.
- Iron compounds: one regulatory filing has been made, targeting a market of about $2.6 bn.
We track companies with solid balance sheets, low-key execution, before they show up on everyone’s radar — and break down the numbers that actually matter in our research.
As always, this is not a stock recommendation — This note is for informational purposes only and not a buy/sell recommendation. Please do your own due diligence before investing.
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Ekansh Mittal
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