Alkem Laboratories (ALKEM) Q3 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of ₹37,368 million in Q3 FY26, up 10.7% YoY, with EBITDA of ₹8,280 million (22.2% margin) and net profit of ₹6,360 million (17.0% margin), reflecting steady growth across key markets.

• Domestic business contributed 67.2% of sales, growing 5.5% YoY, while international business surged 26.6% YoY, with US sales up 18.8% and non-US sales up 41.6%.

• Announced a major acquisition in Medtech, acquiring a majority stake in Occlutech Holding AG to expand into cardiovascular and orthopaedics segments.

• Medtech business expected to reach INR 1,000 crore revenue and 20-22% EBITDA margin in 3-5 years.

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

Financial highlights

• Total revenue for Q3 FY26 was ₹37,368 million, up 10.7% YoY; gross profit increased 13.6% YoY to ₹24,641 million (65.9% margin).

• EBITDA margin at 22.2%, with EBITDA of ₹8,280 million, up 9% YoY; PAT after non-controlling interest was ₹6,360 million, up 1.6% YoY.

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

• R&D expenses for the quarter were ₹1,390 million (3.7% of revenue).

• Exceptional item of ₹528 million related to labor code notification.

Outlook and guidance

• Confident in delivering full-year guidance, with domestic business expected to return to 10%+ growth in Q4 and focus on outperforming the IPM in key therapy areas.

• Medtech business targets 10% market share in ortho implants in five years and strong sequential growth (50% QoQ).

• Occlutech acquisition expected to deliver 14% CAGR over five years, with EBITDA margin rising from 10% to 23-24% by FY29.

• Growth expected from the planned launch of GLP-1 semaglutide in March 2026.

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