Alkem Q4 profit falls 23% on one-off hit; sees strong FY27 pipeline

The drugmaker said strong domestic branded generics and international business growth helped drive record EBITDA performance in FY26

Alkem Laboratories on Thursday reported that its consolidated net profit fell 22.7 per cent year-on-year for the fourth quarter (Q4) of the financial year 2025-26 (FY26) to Rs 236 crore. However, revenue from operations rose 14.6 per cent to Rs 3,603 crore.

 

The profits were impacted by one-time exceptional items and a higher tax charge.

 

For the full year, net profit rose 6 per cent to Rs 2,301 crore, while revenue from operations increased 13 per cent to Rs 14,712.2 crore.

 

Vikas Gupta, chief executive officer of Alkem, said, “We are pleased to report that Alkem has recorded its highest-ever EBITDA in FY26. 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. 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."

 

 

The results were announced during market hours. Alkem’s share rose 1.3 per cent, ending the day’s trade at Rs 5,452 per share on the BSE.

 

Speaking to Business Standard after the results, Gupta said the decline in quarterly profit was largely driven by one-off adjustments rather than weakness in underlying operations. Management attributed the fall in Q4 profit to exceptional items including Labour Code-related gratuity liabilities, impairment of real-estate investments, and a one-time deferred tax adjustment linked to the company’s transition to the new tax regime.

 

“Actually, if you analyse the results, it’s a very strong top-line growth, very strong EBITDA growth, very strong margin improvement,” Gupta said, adding that profit before tax before exceptional items rose 40.7 per cent during the quarter.

 

The company also outlined its FY27 product pipeline, particularly in the US market, where it plans seven to eight launches during the year.

 

Gupta identified two key launches — Tolvaptan (used for treating low blood sodium levels) and Lidocaine patches (a local anaesthetic medication used to numb specific areas of the body) — which are expected around September-October in the second half of FY27.

 

Alkem said it expects India branded formulations to continue outperforming the Indian Pharmaceutical Market (IPM) by 100-250 basis points, as chronic therapies are emerging as a major growth driver for the company, while the US business is expected to grow in high single digits in dollar terms. Non-US international markets are projected to deliver strong double-digit growth.

 

The company also highlighted broad-based international momentum across Australia, Europe, Latin America and other rest-of-world markets, reflecting a strategy shift beyond dependence on the US market.

 

To support future growth, Alkem is setting up a new manufacturing facility at Ujjain, which will primarily cater to the domestic market and potentially support emerging markets over time.

 

Alkem recently launched Semaglutide in India and said early market trends have been encouraging. According to management, the company has already achieved around 11 per cent unit market share based on IQVIA data and is among the top generic players in prescription trends.

 

Gupta said Semaglutide could become “one of the biggest products” for Alkem over time, although he declined to provide revenue guidance given the rapidly evolving nature of the market.