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Alkem Laboratories (ALKEM) investor relations material
Alkem Laboratories Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved all-time high Q2 FY26 revenue of ₹40,010 million, up 17.2% YoY, with robust growth across India, US, and international markets; consolidated H1 FY26 revenue was ₹73,721.3 million, up from ₹64,464.9 million YoY.
Domestic business contributed 69.9% of Q2 sales, growing 12.4% YoY, while international business grew 29.5% YoY, led by US and non-US markets.
Net profit after minority interest for Q2 FY26 was ₹7,651 million (up 11.1% YoY), and for H1 FY26 was ₹14,470.2 million, compared to ₹12,522.0 million YoY.
Completed sale of Indore facility, resulting in a one-time gain of ₹142.9 million classified as an exceptional item.
Transfer of Generic Business Undertaking to a wholly owned subsidiary effective October 1, 2025.
Financial highlights
EBITDA for Q2 FY26 was ₹9,208 million (23% margin), up 22.3% YoY; H1 FY26 EBITDA was ₹16,539.1 million, up from ₹13,996.2 million YoY.
Gross margin for Q2 FY26 was 65%, with guidance for 64-65% for the full year.
PAT margin for Q2 FY26 was 19.1%; EPS for Q2 was ₹64.0, up 11.1% YoY; H1 FY26 EPS was ₹119.55.
R&D expenses for Q2 FY26 were ₹1,302 million, representing 3.3% of revenue.
Net cash as of September 30, 2025, stood at ₹49.4 billion.
Outlook and guidance
Double-digit revenue growth expected to continue, outperforming the market by 100-150 basis points.
EBITDA margin guidance for FY26 is 19.5%-20%, with at least 1% margin improvement expected YoY from FY27 onwards.
Non-US markets projected to deliver high-teens to 20% growth for the year.
US CDMO plant expected to reach breakeven in 12-18 months, targeting ₹3,000 million annual revenue run rate.
Effective tax rate expected to rise to 35-38% in FY27 as MAT credits are utilized.
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