ALKEM LABORATORIES LTD.

Board Meeting Outcomes

The Board of Directors at their meeting held on 28 May 2026 (commenced at 11:20 a.m., concluded at 01:15 p.m.) approved the following:

1. Approval of Financial Results: Approved the Standalone and Consolidated Audited Financial Results for the quarter and financial year ended 31 March 2026. The auditors, Deloitte Haskins & Sells LLP, have expressed an unmodified opinion on both sets of results.

2. Dividend Recommendation: Recommended a final dividend of ₹10 (Rupees Ten only) per equity share of face value ₹2 each for the financial year ended 31 March 2026. This is in addition to the interim dividend of ₹43 per share declared on 13 February 2026. The final dividend is subject to shareholder approval at the ensuing Annual General Meeting (AGM).

3. AGM and Record Date: Fixed the 52nd AGM of the Company on 27 August 2026. The cut-off date for determining shareholders entitled to vote at the AGM is 20 August 2026. The record date for the purpose of the final dividend payment is 07 August 2026. If declared, the dividend will be paid on or from 01 September 2026.

4. Re-appointment of Director: Based on recommendations from the Nomination and Remuneration Committee and Audit Committee, and subject to shareholder approval at the AGM, approved the re-appointment of Mrs. Madhurima Singh as an Executive Director for a term of 5 consecutive years, effective from 20 December 2026 until 19 December 2031.

Consolidated Financial Highlights (FY Ended 31 Mar 2026)

(All figures in ₹ million except per share data)

Income Statement:

  • Total Income: ₹152,956.2 (FY25: ₹134,582.6)
  • Revenue from Operations: ₹147,122.7 (FY25: ₹129,645.2)
  • Other Income: ₹5,833.5 (FY25: ₹4,937.4)
  • Profit before tax (before exceptional items): ₹30,457.2 (FY25: ₹25,270.3)
  • Exceptional Items: Expense of ₹1,748.3 (FY25: Nil)
  • Profit before tax: ₹28,708.9 (FY25: ₹25,270.3)
  • Tax Expense: ₹5,177.6 (FY25: ₹3,110.3)
  • Share of loss from associate: ₹19.7 (FY25: ₹6.2)
  • Profit for the period (attributable to owners): ₹23,018.0 (FY25: ₹21,654.8)
  • Earnings Per Share (Basic & Diluted): ₹192.51 (FY25: ₹181.11)

Balance Sheet (as at 31 Mar 2026):

  • Total Assets: ₹208,729.7 (Mar-25: ₹176,911.0)
  • Total Equity: ₹143,489.3 (Mar-25: ₹124,336.3)
  • Attributable to owners: ₹138,201.0
  • Non-controlling interest: ₹5,288.3
  • Total Liabilities: ₹65,240.4 (Mar-25: ₹52,574.7)

Cash Flow (FY Ended 31 Mar 2026):

  • Net cash from operating activities: ₹19,630.3 (FY25: ₹19,128.4)
  • Net cash used in investing activities: ₹16,672.1 (FY25: ₹12,987.6)
  • Net cash used in financing activities: ₹5,034.0 (FY25: ₹8,109.9)
  • Net decrease in cash equivalents: ₹2,075.8 (FY25: ₹1,969.1)

Standalone Financial Highlights (FY Ended 31 Mar 2026)

(All figures in ₹ million except per share data)

Income Statement:

  • Total Income: ₹102,190.8 (FY25: ₹93,205.0)
  • Revenue from Operations: ₹96,639.1 (FY25: ₹88,134.4)
  • Other Income: ₹5,551.7 (FY25: ₹5,070.6)
  • Profit before tax (from continuing ops, before exceptional items): ₹26,657.1
  • Exceptional Items: Expense of ₹1,430.9 (FY25: Nil)
  • Profit before tax (from continuing ops): ₹25,226.2
  • Tax Expense (continuing ops): ₹3,375.0
  • Profit from continuing ops (after tax): ₹21,851.2
  • Profit from discontinued ops (after tax): ₹969.7 (FY25: ₹1,911.7)
  • Total Profit for the period: ₹22,820.9 (FY25: ₹22,808.9)
  • Earnings Per Share (Continuing ops, Basic & Diluted): ₹182.76 (FY25: ₹174.78)
  • Earnings Per Share (Total ops, Basic & Diluted): ₹190.87 (FY25: ₹190.77)

Balance Sheet (as at 31 Mar 2026):

  • Total Assets: ₹172,611.3 (Mar-25: ₹155,956.0)
  • Total Equity: ₹139,987.6 (Mar-25: ₹123,218.3)
  • Total Liabilities: ₹32,623.7 (Mar-25: ₹32,737.7)

Notes to Financial Results

1. Exceptional Items (Consolidated & Standalone):

  • Impairment of Real Estate Investments: Provision of ₹747 million recognized in Q4/FY26 due to uncertainties in recoverability.
  • Labour Code Impact: Estimated liability for gratuity and leave encashment (past service cost) recognized due to finalization of Central Rules under Labour Codes. Total impact for FY26 is ₹1,130.6 million (Consolidated) / ₹826.8 million (Standalone), recognized over Q3 (₹527.9m/₹381.7m) and Q4 (₹602.7m/₹445.1m) of FY26.
  • Gain on Sale of Indore Facility: Gain of ₹142.9 million recognized in FY26 from the reversal of an impairment loss related to the divestment of the Indore facility, which was sold in Q1 FY25 (quarter ended 30 June 2025).

2. Tax Regime Change: Pursuant to amendments in the Finance Act, 2026, the Parent Company and one Indian subsidiary have opted for the new tax regime (Section 115BAA of the Income-tax Act, 1961) from FY 2026-27. Consequently, deferred tax has been recognized at the substantially enacted rate as of 31 March 2026.

3. Discontinued Operations (Standalone): Reflects the transfer of the Generic Business Undertaking to Alkem Wellness Limited (wholly-owned subsidiary) on a slump sale basis, effective 01 October 2025. Figures for previous periods have been restated accordingly.

4. Segment Information: The Group/Company operates primarily in one reportable business segment, "Pharmaceuticals."

5. Subsidiaries and Associate: The consolidated results include:

  • Audited by Other Auditors: 25 subsidiaries with significant assets and revenues.
  • Unaudited: Financial information of 2 immaterial subsidiaries.
  • Associate: Haystack Analytics Private Limited, representing the Group's share of net loss.

A full list of 34 subsidiaries and 1 associate is provided in the appendix.

6. Audit & Review: The financial results were reviewed by the Audit Committee on 27 May 2026 and approved by the Board on 28 May 2026. The audit reports are unmodified.