Alivus Life Sciences Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Alivus Life Sciences Ltd trades at ₹1,366, in a confirmed uptrend and 24 weeks into that stage. That is +20.0% against its own 200-day average. It sits at 88% of a 52-week range of ₹880 to ₹1,431. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 13 straight weeks.

Today the stock is in a confirmed uptrend — week 24 of stage 2, confirmed. At ₹1,366 it trades +20.0% versus its 200-day average and sits at 88% of its 52-week range (₹880–₹1,431).

Against the market, two honest reads. Cumulative: over the last 5.1 years the stock moved +82% while the NIFTY 500 moved +63% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 13 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Alivus Life Sciences Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_EXPANSION. Still open: The thesis breaks if non-GPL growth no longer offsets GPL weakness while operating margin falls below management's stated range and the promised capacity and CDMO milestones slip again.

Our read, 22 August 2026. Alivus is shifting mix toward non-GPL launches and CDMO, but the earnings multiple already prices a large part of that migration while project timing remains unreliable.

From the numbers. This week's PE/PB snapshot is 24.4x, 1.258x its 19.4x median, with MIXED decomposition and DII_BUYING. The deterministic normalized read remains re-rated expensive: normalized PE is higher than trailing PE because…

From the price. Price stage 2, week 24 — above its 200-day line, relative strength rising.

From the research. Alivus is shifting mix toward non-GPL launches and CDMO, but the earnings multiple already prices a large part of that migration while project timing remains unreliable.

🚨 Where they disagree. This week's PE/PB snapshot is 24.4x, 1.258x its 19.4x median, with MIXED decomposition and DII_BUYING. The deterministic normalized read remains re-rated expensive: normalized PE is higher than trailing PE because current margin is above mid-cycle rather than below it. Earnings are expanding and the multiple has compressed from its peak, but the setup still requires earnings growth to validate the valuation.

What is proven. Alivus is shifting mix toward non-GPL launches and CDMO, but the earnings multiple already prices a large part of that migration while project timing remains unreliable.

What is not proven yet. The thesis breaks if non-GPL growth no longer offsets GPL weakness while operating margin falls below management's stated range and the promised capacity and CDMO milestones slip again.

🚨 What would change our mind. The thesis breaks if non-GPL growth no longer offsets GPL weakness while operating margin falls below management's stated range and the promised capacity and CDMO milestones slip again.

🚨 Layer 1 read, 22 August 2026 — DROP. Profit up 31% on flat sales — growth is margin and currency, and the cash cycle worsened five years running. Alivus earned Rs 160 crore last quarter, up 31 percent, on revenue of just Rs 640 crore — which was 6.3 percent higher than a year ago and actually LOWER than the Rs 689 crore of the quarter before. Management says the margin gain came from 'operational efficiency and forex gains', and the quarter's 33 percent margin is a point above the top of its own stated 30-32 percent range — so this is the best the margin gets, not the start of something. Underneath, I checked the cash cycle in the accounts and it has lengthened every year for five years, from 190 to 267 days, while return on capital fell from 42 to 24 percent — the company is tying up more and more money to stand still. Three of the…

What would change Layer 1’s mind. Consuming driver D1's own kill-switch and sharpening it: two consecutive quarters where revenue growth breaks back above 12 percent year on year with non-GPL still compounding above 15 percent — that is milestone M1 and M5 delivering together — would show the pie is growing again rather than just the margin, and would move this back toward the top half. The reverse flips it to DROP: if Q2 FY27 operating margin falls below 30 percent (milestone M2) while revenue growth stays under 7 percent…

CIO read, 22 August 2026 — RETAIN. HELD (defended slot) · forward-asymmetry 36/100 · CONTESTED. CONTESTED — judged EPS growth of 12% is below the 15.9% implied rate, a −3.9-point sustain gap. The rating is full at the 76th percentile, while delayed capex, delayed CDMO deals and a longer cash cycle weaken the forward case.

The test written in advance. The thesis breaks if non-GPL growth no longer offsets GPL weakness while operating margin falls below management's stated range and the promised capacity and CDMO milestones slip again. — the thesis as written as stated by the next result.

The test written in advance. Valuation requires earnings delivery — Valuation requires earnings delivery Trailing revenue growth and normalized earnings multiple after each quarterly result. by the next result.

The test written in advance. CDMO contract timing — CDMO contract timing Confirmation of the targeted new contracts and disclosed CDMO mix in the next result. by the next result.

What the company does. The latest quarter delivered revenue growth and profit growth, with operating margin above the prior-year level as launches, mix and efficiency offset GPL weakness. The market is paying a premium multiple: trailing valuation is elevated and normalization raises rather than lowers the earnings multiple. The investable question is whether the launch engine, CDMO funnel and capacity projects convert fast enough to grow into that valuation despite recurring schedule revisions.

🚨 What the surface reading misses. The surface reading is: Profit growth above revenue growth indicates operating leverage. The research reads it further: The gap is consistent with higher operating margin and management's stated mix and efficiency bridge, not a one-quarter exceptional-item flag in the supplied ledger.

🚨 What the surface reading misses. The surface reading is: Margin expansion implies improving economics. The research reads it further: The latest margin is above the deterministic mid-cycle margin and management attributes the improvement to mix, launches and efficiency; this supports execution but means current earnings are not trough-depressed.

Lever 2 · Value-added mix — BUILDING. Non-GPL growth is offsetting GPL inventory rationalization and broadening the revenue base. What proves it keeps working: Non-GPL launch engine. It stops working if New launches fail to scale or GPL weakness persists without enough non-GPL growth to cover it.

Lever 1 · Operating leverage — BUILDING. Launch mix and operating efficiency have lifted margins above the previous-year quarter. What proves it keeps working: Mix and process margin bridge. It stops working if Raw-material inflation exceeds pass-through and GPL mix normalizes faster than launch economics scale.

Lever 7 · Consolidation — BUILDING. Returning programmes and prospective contracts can add higher-value revenue, but the funnel remains timing-sensitive. What proves it keeps working: CDMO funnel conversion. It stops working if The targeted contracts slip again or existing programmes do not improve in the second half.

Lever 6 · Order-book wins — BUILDING. The planned sites can add regulated-market capacity and lower precursor cost after commissioning. What proves it keeps working: Capacity and backward integration. It stops working if Commissioning or regulatory inspection slips further, or utilisation remains below the expected ramp.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Alivus Life Sciences Ltd reported ₹640 Cr of revenue in the Jun 26 quarter, +6.3% year on year. That is the 7th straight quarter of year-on-year growth. The last full year, FY26, came in at ₹2,552 Cr. The last four reported quarters add to ₹2,590 Cr.

Why this happened. The CDMO versus branded formulations divergence favours a larger CDMO mix if projects convert. Management cites existing projects, new inquiries and targeted contracts, while declining to attach a firm revenue forecast. That makes conversion evidence more important than the size of the stated funnel.

FY26 revenue came in at ₹2,552 Cr (+6.9% on the year). The latest quarter (Jun 26) printed ₹640 Cr, +6.3% year on year — the 7th consecutive quarter of year-over-year growth.

Acceleration check: trailing-twelve-month revenue grew +7.9% over the last 4 quarters against +6.3%/yr over the last 8 — stabilising; TTM profit +21.6% vs +16.1%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Alivus Life Sciences Ltd's operating margin is 33.0% in the Jun 26 quarter, +4.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 9 fiscal years the operating margin has ranged −4.0% to 31.0%. The current quarter is running above every full year in that window.

Why this happened. The generic-to-specialty value migration is visible in the latest call: management attributes non-GPL growth to launches and demand across markets. This is the primary operating offset while GPL customers reduce inventory.

The latest quarter's operating margin is 33.0%, +4.0 pp against the same quarter a year ago. Across 9 fiscal years the operating margin has ranged −4.0%–31.0%, and FY26's 31.0% is the top of that band — a record year.

Why the margin moved: operating margin went +4.4 pp year on year while gross margin went +5.1 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Alivus Life Sciences Ltd earned ₹160 Cr of net profit in the Jun 26 quarter, +31.1% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹564 Cr. That is 25.0% of the quarter's revenue. The same quarter a year earlier earned ₹122 Cr.

Jun 26 profit was ₹160 Cr, +31.1% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹564 Cr (+16.0%).

Why profit moved: revenue contributed +6.3% and the margin +4.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +23.0% vs revenue +8.3%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 90% of Alivus Life Sciences Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹565 Cr of operating cash against ₹564 Cr of profit. After ₹340 Cr of capital spending, ₹225 Cr was left as free cash.

FY26: operating cash of ₹565 Cr against reported profit of ₹564 Cr, leaving free cash of ₹225 Cr after ₹340 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 90% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 90%: the cash cycle stretched 26 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 3.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Alivus Life Sciences Ltd's cash conversion cycle runs 267 days in FY26, up from 241 days in FY21. Capital spending ran ₹668 Cr over the last 3 years. At FY26 sales of ₹2,552 Cr each day of that cycle holds about ₹7.0 Cr, so roughly ₹1,867 Cr sits inside the business at any moment.

FY26: debtors at 153 days, inventory at 246 days — roughly 8.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 267 days, looser than FY21's 241.

The full loop: cash goes out to suppliers and production on day 0; stock waits 246 days to sell; customers pay about 153 days after that; and suppliers themselves are paid at 132 days — netting out to the 267-day cycle.

In money terms: at FY26 sales of ₹2,552 Cr, each day of the cycle holds about ₹7.0 Cr — so the 267-day loop keeps roughly ₹1,867 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹668 Cr over the last 3 fiscal years against ₹189 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹284 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Alivus Life Sciences Ltd earns a ROCE of 24% in FY26. Return on invested capital clears the cost of that capital by +9.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 22.1% net margin on 0.64× asset turns.

FY26 ROCE is 24%.

Why the return is what it is — the wiring (FY26): 22.1% net margin × 0.64× asset turns × 1.20× balance-sheet leverage ≈ 17.0% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 21.9% − 12.0% = a +9.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Alivus Life Sciences Ltd carries total debt of ₹57.0 Cr against shareholder equity of ₹3,332 Cr as of Mar 26, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.00 in FY22 to 0.02 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹57.0 Cr against shareholder equity of ₹3,332 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.00 (FY22) to 0.02 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 8.0 points of Alivus Life Sciences Ltd over 8 quarters, the biggest move on the register. That takes promoters to 74.9% of the company. Domestic institutions moved +5.6 points over the same window, to 7.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −8.0 points over 8 quarters to 74.9%; Domestic institutions: +5.6 points over 8 quarters to 7.2%; Foreign institutions: +0.7 points over 8 quarters to 5.5%.

🚨 Why the register moved: promoters drove it (−8.0 points), absorbed on the other side by domestic institutions (+5.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Alivus Life Sciences Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Alivus Life Sciences Ltd trades at 26.4× P/E, at the pricey end of its own range (82nd percentile). Its long-run median P/E is 19.9×, measured across 5.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 26.4× is at the pricey end of its own range (82nd percentile), against a long-run median of 19.9× measured over 5.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +16.0% against a +45.4% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +14.8%/yr price move, ~−32.2%/yr came from earnings growth and ~+47.0 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Alivus Life Sciences Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 6 quarters ago at −15.0% and has held its recovery at +21.6%, ROCE holding at 23.5%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

No sector-relative score — Alivus Life Sciences Ltd is score temporarily unavailable — [mlaSectorData] ambiguous sector slug "pharma-api": Pharma - API, Pharma API for undefined.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Said versus delivered

What Alivus Life Sciences Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Revenue Guidance Raised Without a Clear Bridge · 31 July 2026. The May 2026 call guided revenue growth for next year in the high single digit range, while the July 2026 call explicitly raised the FY27 revenue outlook to 10-12%, a material change to the top-line assumption. Although the latest call points to 26.5% non-GPL growth and sustained demand, it does not explicitly reconcile the higher FY27 guidance with the prior high-single-digit outlook.

🚨 CDMO New Deal Closure Timeline Slipped · 15 May 2026. In the Jan 2026 call, management explicitly committed to closing 1-2 new CDMO projects by Q1 FY27 (April-June 2026), describing active pipeline traction and early customer supply as evidence of progress. In the May 2026 year-end call, that same timeline was shifted to early H2 FY27 (from October 2026 onwards) with no substantive new information offered to justify the change. When an analyst directly challenged this inconsistency by name, management acknowledged the push-out while framing it only as a precautionary moderation rather than providing a concrete explanation.

🚨 FY26 Capex Actuals Materially Missed Revised Guidance · 15 May 2026. In the Jan 2026 call, management had already cut FY26 capex guidance from 600 crore to 450 crore, attributing a 150 crore deferral to FY27. The May 2026 year-end call reported actual FY26 capex of only 306 crore - a further 32% shortfall from that one-quarter-old revised guidance - without explicitly explaining the incremental miss. The FY27 capex is now guided at 540 crore, implying a materially larger carryover than the 150 crore communicated in Jan 2026, yet management provided no bridging explanation for why actual FY26 spend fell so far short of the recently revised figure.

FY27 Revenue Growth Guidance Quietly Dropped · 15 May 2026. In the Jan 2026 call, management explicitly extended their high single-digit revenue growth guidance forward to FY27, providing concrete directional guidance investors could model. In the May 2026 year-end call - the most natural occasion to reaffirm or formally revise that FY27 outlook - no revenue growth guidance was offered. When asked about the future growth trajectory, management deflected to macro headwinds from the war and pivoted exclusively to margin sustainability, neither reiterating nor formally withdrawing the previously stated FY27 guidance.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions