Alivus Life Sciences' bank loan facilities upgraded to 'IND AA'

India Ratings and Research has upgraded Alivus Life Sciences Limited's (ALS) bank loan facilities' long-term rating to 'IND AA' from 'IND AA-' with a Stable Outlook, while affirming the short-term rating at 'IND A1+'. This upgrade, effective September 16, 2025, reflects ALS's strong operational performance, healthy EBITDA margins, and net cash position in FY25, despite pricing headwinds in the active pharmaceutical ingredient (API) sector. The company's capacity utilization remained above 95% over FY22-FY25, supported by a diverse and niche product portfolio.

ALS reported revenue of INR23,869 million in FY25, a 10% year-on-year volume growth, with EBITDA margins maintaining a healthy 28.6%. The company's net cash position stood at INR5,487 million at FY25, with a strong Return on Capital Employed (ROCE) of 23%. Planned greenfield and brownfield expansions are expected to increase reactor capacity to 2,690 kilo litres by 2028, funded primarily through internal accruals, with net leverage projected to remain below 1.0x.

As a majority-owned (75%) subsidiary of Nirma Limited, ALS benefits from enhanced financial flexibility. The company's diversified revenue streams from regulated markets (over 85% of FY25 sales) and a portfolio of 165 molecules further underscore its robust business profile.