Alivus Life Sciences Limited has delivered its strongest quarterly performance to date, reporting record-breaking financial results for Q3 FY26 ended December 31, 2025. The pharmaceutical company achieved significant milestones across revenue growth, profitability, and operational efficiency during the quarter.

Record Financial Performance

The company reported its highest-ever quarterly revenue of Rs. 673 crores, representing substantial growth momentum with 14.4% quarter-on-quarter and 4.8% year-on-year expansion. This performance was driven by strong contributions across all business segments, with particular strength in regulated markets including Europe, Japan, LATAM, and India.

Exceptional Margin Expansion

Alivus achieved record EBITDA margins of 36.4% for the quarter, marking a significant improvement of 340 basis points quarter-on-quarter and 510 basis points year-on-year. The gross margin reached 58.9%, up 330 basis points year-on-year, driven by new product launches, favorable product mix, and enhanced operational efficiencies. PAT margins stood at 22.3% for the quarter.

Nine-Month Performance Highlights

For the nine-month period FY26, the company demonstrated consistent growth trajectory:

The non-GPL business segment showed particularly strong performance with 16.1% growth, reflecting the underlying strength of the company's diversified business model across geographies.

CDMO Business Recovery

The Contract Development and Manufacturing Organization (CDMO) segment delivered exceptional performance, achieving 100% quarter-on-quarter and 85.3% year-on-year growth. This recovery was driven by robust traction in newer CDMO projects, with Project 4 and Project 5 contributing significantly to revenue expansion as expected in the second half turnaround.

Strong Balance Sheet and Cash Position

Alivus maintained its debt-free status with strong financial fundamentals:

Capacity Expansion and R&D Pipeline

The company's expansion initiatives at Solapur, Ankleswar, and Dahej are progressing as planned. CAPEX guidance for FY26 has been revised to Rs. 450 crores from the earlier Rs. 600 crores, with Rs. 150 crores deferred to FY27. The robust pipeline includes 595 DMF and CEP filings globally, with the high potent API portfolio comprising 27 products representing a total addressable market of $70 billion.

Therapeutic Portfolio Performance

CVS and CNS therapies continued to lead growth, contributing 51% to the topline, while chronic therapies represented 66% of Q3 FY26 revenue. R&D expenditure remained at 3.4% of sales for the quarter and 3.5% for nine months.

Forward Guidance

Management expects high single-digit revenue growth for FY26, driven by strong performance across diversified non-GPL segments and continued CDMO project ramp-up. EBITDA margins are expected to range between 30%-32% going forward, representing an upward revision from the earlier guidance of 28%-30%, supported by operational efficiencies and new product launch contributions.

Alivus Life Sciences has provided strategic guidance outlining its expansion plans in the Contract Development and Manufacturing Organization (CDMO) segment, with management setting clear targets for project completion and future growth during a recent concall.

CDMO Project Pipeline

The company's management has indicated plans to conclude one to two additional CDMO projects by the first quarter of FY27. This timeline reflects the company's structured approach to expanding its contract manufacturing capabilities and strengthening its position in the pharmaceutical services sector.

Growth Projections

Management has expressed confidence in the company's medium-term growth prospects, projecting double-digit growth rates from FY28-29 onwards. This guidance suggests that the completion of the anticipated CDMO projects will contribute significantly to the company's revenue expansion and operational scale.

The projected growth timeline indicates a strategic approach where the company expects to leverage its enhanced CDMO capabilities to drive substantial revenue increases in the subsequent fiscal years. This phased expansion plan demonstrates management's focus on sustainable growth through targeted project completion and capacity enhancement.

Strategic Outlook

The guidance provided during the concall reflects Alivus Life Sciences' commitment to expanding its presence in the CDMO space. The company's approach of setting specific project completion targets followed by growth projections suggests a methodical strategy for business development and market expansion in the pharmaceutical contract services sector.