Alkem Q4 Revenue Up 14.6%, EBITDA Hits Record

Company Overview

Alkem Laboratories Limited (Scrip Code: 539523, NSE: ALKEM) is the sixth-largest pharmaceutical company in the Indian market with over 50 years of operations. The company has 18 manufacturing facilities and R&D centers developing generic formulations, APIs, and biosimilars.

Q4 FY26 Financial Performance

Revenue Metrics

Total Revenue from Operations: ₹36,033 million, representing 14.6% YoY growth
India Sales: ₹23,245 million with 8.8% YoY growth (65.5% of total sales vs 68.7% in Q4 FY25)
International Sales: ₹12,223 million with 25.4% YoY growth
US Sales: ₹7,681 million with 26.2% YoY growth (21.7% of total sales)
Non-US Sales: ₹4,543 million with 24.1% YoY growth (12.8% of total sales)

Profitability Metrics

EBITDA: ₹5,174 million with 32.2% YoY growth
EBITDA Margin: 14.4% vs 12.4% in Q4 FY25
Gross Profit: ₹23,555 million with 26.3% YoY growth
Gross Profit Margin: 65.4% vs 59.3% in Q4 FY25
Profit Before Tax (before exceptional items): ₹5,578 million with 40.7% YoY growth

Exceptional Items Q4 FY26

₹602.7 million incremental liability towards gratuity and leave encashment for past service cost following finalisation of Central Rules under the Labour Codes
₹747 million impairment of real estate investments

Net Profit

Net Profit (after Non-Controlling Interest): ₹2,365 million, representing 22.7% YoY de-growth
Net Profit Margin: 6.6% vs 9.7% in Q4 FY25
EPS: ₹19.8 per share vs ₹25.6 in Q4 FY25

R&D Expenses

R&D Expenses: ₹2,293 million (6.4% of total revenue) vs ₹585 million (5.0% of total revenue) in Q4 FY25

FY26 Full Year Financial Performance

Revenue Metrics

Total Revenue from Operations: ₹147,123 million, representing 13.5% YoY growth
India Sales: ₹98,514 million with 9.7% YoY growth (67.8% of total sales vs 70.2% in FY25)
International Sales: ₹46,810 million with 22.5% YoY growth
US Sales: ₹29,845 million with 20.3% YoY growth (20.5% of total sales)
Non-US Sales: ₹16,964 million with 27.4% YoY growth (11.7% of total sales)

Profitability Metrics

EBITDA: ₹30,052 million with 19.6% YoY growth
EBITDA Margin: 20.4% vs 19.4% in FY25
Gross Profit: ₹96,195 million with 17.3% YoY growth
Gross Profit Margin: 65.4% vs 63.3% in FY25
Profit Before Tax (after exceptional items): ₹28,709 million with 13.6% YoY growth

Exceptional Items FY26

₹1,130.6 million liability towards gratuity and leave encashment for past service cost following finalisation of Central Rules under the Labour Codes
₹747 million impairment of real estate investments
Partly offset by exceptional gain of ₹142.9 million from reversal of impairment on sale of the Indore facility

Net Profit

Net Profit (after Non-Controlling Interest): ₹23,018 million, representing 6.3% YoY growth
Net Profit Margin: 15.6% vs 16.7% in FY25
EPS: ₹192.5 per share vs ₹181.1 in FY25

R&D Expenses

R&D Expenses: ₹6,173 million (4.2% of total revenue) vs ₹5,620 million (4.3% of total revenue) in FY25

Operational Highlights

Domestic Business Performance Q4 FY26

Outperformed Indian Pharmaceutical Market (IPM) growth by 100 bps (11.1% vs 10.1% IPM growth)
Acute segment outperformed IPM by 230 bps (10.0% vs 7.7% IPM growth)
Chronic segment outperformed IPM by 250 bps (16.1% vs 13.6% IPM growth)
Outperformed IPM in six key focused therapies: Gastro-intestinal (~1.8X), VMN (~1.6X), Pain (~1.7X), Anti-Diabetic (~1.4X), Respiratory (~1.6X), and Derma (~2.0X)

Domestic Business Performance FY26

Outperformed Indian Pharmaceutical Market (IPM) growth by 20 bps (9.2% vs 9.0% IPM growth)
Acute segment outperformed IPM by 170 bps (8.5% vs 6.8% IPM growth)
Chronic segment outperformed IPM by 10 bps (12.6% vs 12.5% IPM growth)
Outperformed IPM in seven key focused therapies: Anti-infectives (~1.1X), Gastro-intestinal (~1.5X), VMN (~2.0X), Pain (~1.6X), Anti-Diabetic (~1.2X), Respiratory (~1.4X), and Derma (~1.8X)

International Business Developments

Filed 05 ANDAs and received 04 ANDA approvals in Q4 FY26
As of March 31, 2026: Filed 192 ANDAs, 02 NDAs and 01 BLA with USFDA
Received approvals for 167 ANDAs (including 19 tentative approvals) and 02 NDAs
Launched 11 products during FY26

Facility Regulatory Status

| Ankleshwar (India) | API | Apr-23 | EIR Received in July 2023 |

| Mandva (India) | API | Dec-23 | EIR Received in Mar 2024 |

| California (USA) | API | Sep-25 | EIR Awaited - No observation received |

Management Commentary

Dr. Vikas Gupta, CEO of Alkem, stated: "We are pleased to report that Alkem has recorded its highest ever EBITDA in FY26, reaffirming the strength of our growth strategy, execution and operational rigour. Our top-line growth was broad-based with both domestic branded generics and international business delivering strong growth. An improving business mix, operating leverage and continued cost discipline drove meaningful margin expansion in FY26. Our financial performance in Q4 was also marked by strong revenue and EBITDA growth as well as a significant increase of 40.7% in our profit before tax and exceptional item. We enter FY27 on a firm foundation and expect healthy growth across businesses supported by increasing contribution from chronic therapies and a differentiated launch pipeline for international markets."

Shareholding and Market Data (as on March 31, 2026)

Shares Outstanding: 120 million
Market Capitalization: ₹633,495 million
Free Float Market Capitalization: ₹297,489 million
Share Price: ₹5,299 (NSE as of 31st Mar 26)
Industry: Pharmaceuticals

Conference Call Details

Date: May 28, 2026 at 4:30 pm IST
Duration: 4:30 pm to 5:30 pm IST
Representatives: Mr. Sandeep Singh (MD), Dr. Vikas Gupta (CEO), Mr. Nitin Agrawal (CFO)
Host: Motilal Oswal Securities Ltd