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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.
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Q2 25/26 earnings summary13 Nov, 2025

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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Frequently asked questions

Alkem Laboratories Limited is a pharmaceutical company engaged in the development, manufacturing, and marketing of generic and branded medicines. The company’s product portfolio spans multiple therapeutic areas, including anti-infectives, gastroenterology, cardiology, neurology, and pain management. It operates a network of research and manufacturing facilities to supply domestic and international markets. The company is headquartered in Mumbai, India, and its shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

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