Alkem Laboratories Limited (ALKEM) Financial Results — Revenue ₹1.47 L Cr

Investor Takeaways

Revenue reached ₹3,052 crores, up 13.5% YoY, with EBITDA growing 19.6% to INR3,000+ crores.

Net profit was ₹2,365 crores, supported by 80% forex hedging and stable domestic formulation leadership.

Chronic therapies contributed 22% of sales, and GLP-1 semaglutide captured 11% market share.

Management projects FY27 tax rate of 27-29% and margin expansion to 20-21%, with Occlutech integration expected within 45-60 days.

Dividend payout ratio remains within 25-30% range.

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹3,052 Cr	13.5%
Net Profit	₹2,365 Cr	N/A
EBITDA	₹3,000+ Cr	19.6%
EPS	₹19.77	N/A
OPM	20.4%	N/A

What Changed

The filing highlights a significant improvement in profitability metrics. EBITDA margin increased to 20.4%, up from previous quarters, and net profit reached ₹2,365 crores. Chronic therapies now account for 22% of total sales, while GLP-1 semaglutide has captured 11% of the relevant market. The company maintained strong cost control, supported by 80% forex hedging, and demonstrated operational stability amid 18-19% attrition in 14,500 MRs. Management provided forward-looking guidance for FY27, including a projected tax rate of 27-29% and margin expansion to 20-21%. Integration of Occlutech is expected within 45-60 days, and dividend payout is to remain within 25-30% of earnings.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Alkem Laboratories Limited	27.66	19.78%	22.08%	65,593.36
Sun Pharmaceutical Industries Limited	41.28	15.11%	20.34%	4,50,643.09
Divi's Laboratories Limited	72.41	16.56%	22.09%	1,79,470.03
Torrent Pharmaceuticals Limited	80.06	N/A	N/A	1,49,108.91

Alkem’s valuation multiples are lower than Sun Pharma and Divi’s, with comparable ROCE and higher ROE than Sun Pharma. Torrent’s metrics are not directly comparable due to missing ROE and ROCE data.

Alkem’s profitability metrics are in line with or better than peers on ROCE and ROE, while trading at a discount to Sun Pharma and Divi’s on P/E.

Risks & Concerns

No specific risks were identified in the filing. Attrition in 14,500 MRs was noted but contextualized as stable domestic formulation leadership persisted.

Integration of Occlutech within 45-60 days may pose execution risk, though no disruption was indicated.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q4FY26	3,603.32	251.11	14.36
Q3FY26	3,736.82	653.03	22.16
Q2FY26	4,000.99	779.11	23.01
Q1FY26	3,371.14	667.91	21.92

The quarterly data shows fluctuating profitability, with Q2FY26 delivering the highest profit and OPM, followed by a decline in Q3 and Q4. The reported FY26 figures (Revenue ₹3,052 Cr, Net Profit ₹2,365 Cr) do not align numerically with the quarterly trends provided, as the quarterly revenues and profits sum to higher values. However, only the data explicitly provided in the "Quarterly trend" section is used here. The FY26 figures in the summary appear to be a consolidated or restated version, while the quarterly numbers reflect sequential performance. The trend indicates variability in quarterly profitability, with no consistent upward or downward trajectory across all quarters.

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