Alkem Laboratories (ALKEM) Q4 25/26 earnings summary

Executive summary

• Achieved record annual EBITDA surpassing INR 30,052 million, with strong business growth and operational excellence across India and international markets, including notable outperformance in chronic therapies and successful new product launches like semaglutide.

• Q4 FY26 revenue from operations rose 14.6% YoY to INR 36,033 million, with EBITDA up 32.2% YoY and PAT down 22.7% YoY due to exceptional items.

• Leadership transition announced, with Dr. Vikas Gupta departing 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.

• A final dividend of ₹10 per equity share was recommended, in addition to an interim dividend of ₹43 per share declared earlier in the year.

Financial highlights

• FY26 consolidated revenue: INR 147,123 million (+13.5% YoY); India sales: INR 98,514 million (+9.7% YoY); international sales: INR 46,810 million (+22.5% YoY).

• FY26 EBITDA: INR 30,052 million (+19.6% YoY), margin at 20.4%; net profit: INR 23,511.6 million; EPS: ₹192.5.

• Q4 FY26 EBITDA: INR 5,174 million (+32.2% YoY), margin at 14.4%; net profit: INR 2,365 million.

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

• Exceptional items for FY26 included impairment of real estate (₹747 million), gratuity/leave encashment (₹1,130.6 million), and gain from Indore facility sale (₹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.

• Ongoing investments in R&D, with spend at 4.2% of sales for FY26; focus on execution, portfolio mix improvement, and expanding differentiated pipeline.

• The company and its Indian subsidiaries will continue to evaluate the financial impact of the new Labour Codes and any further clarifications or guidance.

• The company has opted for the new tax regime from FY27, with deferred tax recognized at the substantially enacted rate as of 31 March 2026.