Alkem Laboratories (ALKEM) Q4 25/26 earnings summary

Executive summary

• Achieved record annual EBITDA surpassing INR 3,000 crore, with strong business growth and operational excellence across India and international markets, and notable outperformance in chronic therapies and new launches like semaglutide.

• Q4 FY26 revenue from operations rose 14.6% YoY to ₹36,033 million, with EBITDA up 32.2% YoY; FY26 revenue grew 13.5% YoY to ₹147,123 million, EBITDA increased 19.6% YoY, and PAT rose 6.3% YoY.

• Leadership transition announced, with CEO departure and a global search for a new CEO underway.

• Audited standalone and consolidated financial results for FY26 were approved, with auditors expressing an unmodified opinion.

• Final dividend of ₹10 per share recommended, in addition to an interim dividend of ₹43 per share declared earlier.

Financial highlights

• FY26 consolidated revenue: ₹147,122.7 million (+13.5% YoY); consolidated net profit: ₹23,511.6 million; Q4 FY26 revenue: ₹36,033 million (+14.6% YoY); Q4 EBITDA: ₹5,174 million (+32.2% YoY).

• FY26 EBITDA: ₹30,052 million (+19.6% YoY), margin at 20.4%; FY26 PAT margin: 15.6%; Q4 EBITDA margin: 14.4%.

• R&D expenses: FY26 ₹6,173 million (4.2% of revenue); Q4 FY26 ₹2,293 million (6.4% of revenue).

• Net cash as of March 31, 2026: ₹54.74 billion; net cash generated from consolidated operating activities for FY26: ₹19,630.3 million.

• Exceptional items for FY26 included impairment of real estate investments (₹747 million), estimated liability for gratuity and leave encashment (₹1,130.6 million consolidated), and a gain from the sale of the Indore facility (₹142.9 million).

Outlook and guidance

• Aims to grow 100-150 basis points above market in India, with double-digit growth expected; U.S. business to see high single-digit growth in dollar terms, with new launches contributing.

• Margin guidance for FY27 is 20-21%, contingent on stabilization of geopolitical and cost pressures.

• Continued focus on outperforming the Indian Pharmaceutical Market in both acute and chronic segments, with ongoing R&D investments and international expansion.

• The company and its subsidiaries will continue to evaluate the financial impact of new Labour Codes and tax regime changes.