Alkem Laboratories (ALKEM) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue from operations grew 7.1% year-over-year to INR 31,438 million; FY25 revenue up 2.3% to INR 129,645 million, with India sales rising 8.1% in Q4 and 6.5% in FY25, contributing over 68% to total sales.

• International sales grew 7.2% YoY in Q4FY25 but declined 4.5% in FY25; US business saw a 2.5% YoY decline in Q4 and 10.4% in FY25.

• Net profit for Q4 FY25 was INR 3,059 million, up 4.2% YoY; full-year net profit was INR 21,655 million, up 20.6%.

• Annual and quarterly financials were audited with unmodified opinions; transfer of the Generic Business Undertaking and divestment of the Indore facility were approved.

Financial highlights

• FY25 total revenue from operations was INR 129,645 million, up 2.3% YoY; standalone revenue was INR 88,134.4 million.

• FY25 EBITDA was INR 25,122 million (margin 19.4%, up from 17.7%); Q4FY25 EBITDA was INR 3,913 million (margin 12.4%).

• R&D expenses for FY25 were INR 5,620 million (4.3% of revenue); Q4 R&D was INR 1,585 million (5% of revenue).

• Net cash position as of March 31, 2025, stood at INR 46.2 billion.

• Standalone net profit for FY25 was INR 22,808.9 million; consolidated net profit was INR 22,153.8 million.

Outlook and guidance

• EBITDA margin guidance for FY26 is stable at 19.5%, with operating leverage expected from growth.

• Gross margin for FY26 expected to be around 63% or slightly higher.

• R&D spend to increase to around 5% of revenue in FY26 due to filings in US and other markets.

• Tax rate guidance: 13-15% for FY26; post-FY27, tax rate to rise to 35-37.8% as tax exemptions expire.

• Business Transfer Agreement for the Generic Business expected to complete by October 1, 2025, with no impact on consolidated results.