Alkem Laboratories (ALKEM) Q3 25/26 earnings summary

Executive summary

• Reported consolidated revenue from operations of ₹37,368 million in Q3 FY26, up 10.7% year-over-year, with EBITDA of ₹8,280 million (22.2% margin) and net profit after non-controlling interest of ₹6,360 million (17.0% margin).

• Domestic business contributed 67.2% of sales, growing 5.5% YoY to ₹24,959 million, while international business surged 26.6% YoY to ₹12,157 million, with US sales up 18.8% and non-US sales up 41.6%.

• Announced acquisition of a majority stake in Occlutech Holding AG, a global medical devices company, to expand into cardiovascular and orthopaedics segments, aiming for global expansion and significant EBITDA margin improvement in 4-5 years.

Financial highlights

• Gross profit for Q3 FY26 was ₹24,641 million (65.9% margin), up 13.6% YoY; EBITDA grew 9.0% YoY to ₹8,280 million.

• Profit before tax after exceptional items was ₹7,812 million, up 6.9% YoY; net profit after non-controlling interest was ₹6,360 million, up 1.6% YoY.

• R&D expenses for Q3 FY26 were ₹1,390 million, representing 3.7% of revenue.

• Net cash as of December 31, 2025, stood at ₹55.9 billion.

• Interim dividend of ₹43 per equity share declared for FY26.

Outlook and guidance

• Management remains confident in delivering full-year guidance, with domestic business expected to return to 10%+ growth in Q4 as base effect normalizes.

• Chronic segment and prescription business expected to maintain high-teens growth; generic business to recover to high single/early double-digit growth next year.

• Medtech revenue targeted at INR 1,000 crore in 3-5 years with 20-22% EBITDA margin; Occlutech expected to grow at 14% CAGR over five years, with EBITDA margin rising from 10% to 23-24% by year three.

• Focus remains on execution, strengthening product portfolio, and building long-term competitiveness.