Alkem Laboratories (ALKEM) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached ₹37,368 million, up 10.7% YoY, with EBITDA of ₹8,280 million (22.2% margin) and net profit of ₹6,360 million (17.0% margin), reflecting steady growth across key markets.

• Domestic business contributed 67.2% of sales, growing 5.5% YoY, while international business surged 26.6% YoY, driven by robust US and non-US market performance.

• Major acquisition of a majority stake in Occlutech, a global Medtech company, to expand into cardiovascular and orthopaedics, with expectations of significant value creation and EBITDA margin expansion.

Financial highlights

• Revenue from operations rose 10.7% YoY to ₹37,368 million; gross profit increased 13.6% YoY to ₹24,641 million (65.9% margin).

• EBITDA grew 9.0% YoY to ₹8,280 million; PAT after non-controlling interest was ₹6,360 million, up 1.6% YoY.

• R&D expenses for Q3 FY26 were ₹1,390 million, representing 3.7% of revenue.

• Net cash as of December 31, 2025, stood at ₹55.9 billion.

• Interim dividend of ₹43 per equity share declared for FY26.

Outlook and guidance

• On track to deliver full-year guidance, with bullish outlook for both domestic and international businesses.

• Chronic and prescription businesses expected to maintain strong growth; generic business to return to high single-digit or early double-digit growth next year.

• Guidance for gross margin to remain stable, with potential 0.5-1 percentage point fluctuation due to market conditions.

• Growth expected from the planned launch of GLP-1 semaglutide in March 2026.