Alkem Laboratories LimitedPharmaceuticals & HealthcareALKEM
Q1 FY27 earnings callAlkem Laboratories Limited
Revenue growth was driven by international sales and branded formulations in India, but net profit declined sharply due to tax impacts and ongoing investments in new, loss-making CDMO and MedTech businesses.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from Operations | INR 3,740 crores | close to 11% year-on-year growth | |
| India Sales | INR 2,497 crores | 10.3% year-on-year growth | |
| International Sales | INR 1,222 crores | 16% year-on-year growth | |
| EBITDA Margin | 20.5% | 3.7% year-on-year growth | |
| Profit Before Tax Growth | 1.8% | 1.8% year-on-year growth | |
| Net Profit | n/a | degrowth of 21.7% year-on-year | |
| India IPM Outperformance | 100 basis points | 13.2% vs IPM 12.2% |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹3,374.28 Cr+1.5% YoY-1.2% QoQ | ₹640.79 Cr+6% YoY-8.7% QoQ | ₹52.34+5.2% YoY-9.1% QoQ |
| Q2 FY25 | ₹3,414.67 Cr-0.7% YoY+12.6% QoQ | ₹701.96 Cr+14.2% YoY+27.6% QoQ | ₹57.60+11% YoY+26.3% QoQ |
| Q1 FY25 | ₹3,031.82 Cr+2.2% YoY+3.3% QoQ | ₹550.24 Cr+91.2% YoY+80.7% QoQ | ₹45.60+90.2% YoY+85.7% QoQ |
| Q4 FY24 | ₹2,935.82 Cr+1.1% YoY-11.7% QoQ | ₹304.48 Cr+349.9% YoY-49.6% QoQ | ₹24.55+313.3% YoY-50.7% QoQ |
| Q3 FY24 | ₹3,323.87 Cr+9.3% YoY-3.4% QoQ | ₹604.28 Cr+31.4% YoY-1.7% QoQ | ₹49.76+30.8% YoY-4.1% QoQ |
TL;DR
- Revenue grew 11% YoY to INR 3,740 Cr, with India up 10.3% and International up 16%.
- Net profit fell 21.7% due to tax factors.
- EBITDA margin was 20.5%.
- Outperformed Indian Pharmaceutical Market (IPM) by 100 basis points.
- Daman facility received OAI status, but supplies continue; it contributes 45% of U.S. revenue.
- Trade Generics growth was flat, dragging India growth.
Said on the call
“The growth was dragged down because of the Trade Generics. Trade Generics growth was flattish to a very mild growth.”
From the Q&A
| Topic | What management said |
|---|---|
| India Growth Dynamics | 10.3% India growth dragged by flat Trade Generics; branded generics grew 12%. |
| Cost Increases | Employee cost up >16% due to increments, 1,200 MR additions, and CDMO operations. Other expenses up due to CDMO and forex rates. |
| New Business Losses | MedTech (ex-Occlutech) EBITDA loss INR 5-7 Cr. U.S. CDMO quarterly operational expense ~INR 60 Cr; breakeven in 4-5 quarters requiring USD 25-30M annual revenue. |
| Regulatory and Pipeline | Daman facility OAI status received; supplies continue. 45% of U.S. revenue from Daman. Denosumab biosimilar U.S. approval delayed by a few months. |
| Trade Generics Outlook | Flat growth due to competition, stricter DSOs, and price increases. Expect growth to recover but will be happy with late single digits for 1-2 years. |
| Full Year Guidance | India growth ~12% (possibly 100 bps better). U.S. growth mid-to-high single digit. Consolidated tax rate 30-32%. Gross margin guidance 66.5-67%. |
Guidance
- India sales growth for the year could be close to 12% (possibly 100 basis points better).
- U.S. sales growth expected to be mid-to-high single digit for the year.
- Consolidated tax rate expected in the range of 30% to 32%.
- Gross margin guidance maintained at 66.5% to 67% for the balance of the year.
- U.S. CDMO business expected to breakeven in 4-5 quarters, requiring USD 25-30 million annual revenue.
- MedTech (Occlutech) target is around INR 400 crores of sales with breakeven EBITDA for ~8.5 months this year.
- Expect to come out of Daman OAI status in 6 to 12 months' time.
Source
Summary written from the transcript filed by Alkem Laboratories Limited for the call held on 14 Aug 2026; published 20 Aug 2026, 19:52 IST.