Alkem Laboratories (ALKEM) Q4 24/25 earnings summary

Executive summary

• Achieved healthy growth in India business in Q4 FY25, with improved profitability and margins for the full year.

• Q4FY25 revenue from operations grew 7.1% year-over-year to ₹31,438 million; FY25 revenue up 2.3% to ₹129,645 million.

• India sales rose 8.1% YoY in Q4FY25 and 6.5% in FY25, contributing 68.7% and 70.2% to total sales, respectively.

• International sales grew 7.2% YoY in Q4FY25 but declined 4.5% in FY25; US business saw a 2.5% YoY decline in Q4 and 10.4% in FY25.

• Annual and quarterly financial results were audited and reviewed, with unmodified opinions from auditors for both standalone and consolidated statements.

Financial highlights

• Q4 FY25 revenue from operations: INR 31,438 million, up 7.1% year-over-year.

• FY25 revenue: INR 129,645 million, up 2.3% YOY; EBITDA: INR 25,122 million, up 11.9% YOY; EBITDA margin expanded from 17.7% to 19.4%.

• Q4 net profit: INR 3,059 million, up 4.2% YOY; FY25 net profit: INR 21,655 million, up 20.6% YOY.

• Standalone revenue for FY25 was ₹88,134.4 million, up from ₹79,638.5 million; standalone net profit was ₹22,808.9 million.

• Consolidated net profit for FY25 was ₹22,153.8 million, compared to ₹18,114.6 million in FY24.

Outlook and guidance

• EBITDA margin guidance for FY26 is stable at 19.5%.

• Gross margin expected to remain around 63% or improve by 25 bps in FY26.

• Domestic business expected to grow at least 100 bps above market, with market growth estimated at 7-8%.

• US business expected to deliver mid-single-digit growth in FY26.

• R&D expenses projected at around 5% of revenue for FY26.

• CapEx for FY26 estimated at INR 700-750 crore, with INR 200 crore for Engine and additional investments in new domestic plant and medtech.

• Tax rate guidance: 13-15% for FY26; post-FY26, tax rate to rise to 35-37.8% due to end of tax exemptions.

• The Business Transfer Agreement for the Generic Business is expected to be completed by October 1, 2025.