Alkem Laboratories (ALKEM) Q2 25/26 earnings summary

Executive summary

• Achieved all-time high revenue of INR 40,010 million in Q2 FY26, up 17.2% YoY, with robust growth across India, US, and international markets; EBITDA of INR 9,208 million (23% margin) and PAT of INR 7,651 million (19.1% margin).

• Domestic business contributed 69.9% of total sales, growing 12.4% YoY, while international business grew 29.5% YoY, driven by strong US and non-US performance.

• Consolidated revenue for the six months ended September 30, 2025, was INR 73,721.3 million, with net profit of INR 14,470.2 million.

• Sale of Indore facility completed, resulting in a one-time gain of INR 142.9 million.

• Transfer of Generic Business Undertaking to a wholly owned subsidiary effective October 1, 2025.

Financial highlights

• India sales reached INR 27,660 million, up 12.4% YoY; US sales at INR 7,649 million, up 28% YoY; non-US sales at INR 4,241 million, up 32.4% YoY.

• EBITDA grew 22.3% YoY to INR 9,208 million, with margin at 23%; PAT after minority interest was INR 7,651 million, up 11.1% YoY; EPS increased to INR 64.0.

• Gross profit margin was 65.0% in Q2 FY26, up from 64.7% YoY.

• R&D expenses were INR 1,302 million (3.3% of revenue), expected to rise to 4-5% by year-end.

• Net cash as of September 30, 2025, stood at INR 49.4 billion.

Outlook and guidance

• Confident of double-digit growth in H2 and FY27, aiming to outperform the Indian pharma market by 100-150 basis points.

• EBITDA margin guidance for FY26 at 19.5-20%, with at least 1% annual margin improvement from FY27 onwards.

• Non-US markets expected to deliver high-teens to 20% growth for the year; US business projected to achieve low double-digit growth (10-11%) for the year.

• CDMO US plant expected to reach breakeven in 12-18 months, targeting INR 300 crore annual run rate; MedTech business expected to break even by FY28.

• Continued focus on expanding international business and ongoing investment in R&D and new product launches.