Alivus Life Sciences (ALVUS) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue was ₹5,069 million, down 14.9% YoY and 13.9% QoQ, mainly due to a temporary production halt at the Ankleshwar facility, which has since largely recovered.

• Gross margins improved to 55.6%, up 150 bps YoY and 450 bps sequentially, driven by favorable product mix and stable pricing.

• EBITDA margin for Q2 FY25 was 28.2%, with PAT at ₹953 million and PAT margin at 18.8%.

• Free cash flow of ₹1,340 million was generated in H1 FY25, with cash and equivalents at ₹4,461 million as of September 30, 2024.

• The outlook for H2 FY25 is strong, with expectations to make up lost ground and maintain robust order books.

Financial highlights

• Q2 FY25 revenue: ₹5,069 million, down 14.9% YoY and 13.9% QoQ; gross profit: ₹2,817 million (55.6% margin); EBITDA: ₹1,429 million (28.2% margin); PAT: ₹953 million (18.8% margin).

• H1 FY25 revenue: ₹10,955 million, down 6.7% YoY; EBITDA: ₹3,079 million, down 16.2% YoY; PAT: ₹2,068 million, down 18.7% YoY.

• Basic EPS for Q2 FY25 was ₹7.78, down from ₹9.69 in Q2 FY24.

• Cash and cash equivalents increased to ₹4,461 million as of September 30, 2024.

• H1 FY25 capital expenditure was ₹856.37 million.

Outlook and guidance

• FY25 revenue growth is now guided at high single digits, revised from earlier low-teens guidance due to LATAM softness and production loss.

• Margins are expected to remain steady, with gross margin guidance of 52–55%.

• H2 FY25 is expected to outperform earlier estimates, supported by a strong order book and recovery from disruptions.

• Medium-term growth is expected to accelerate as new CDMO projects and product launches ramp up.

• The company continues to focus on its core API segment and maintains a single-segment reporting structure.