Alkem Laboratories Sees Core Profit Surge 41% in Q4 on Domestic and Global Expansion

Alkem Laboratories Posts 40.7 Percent Growth in Core Profit

Alkem Laboratories reported a sharp 40.7 percent growth in core profit before exceptional items for the March quarter, driven by broad-based revenue expansion across domestic and international markets, along with improving operating leverage.

The company's pre-exceptional profit rose to Rs 557.8 crore in Q4FY26, as strong traction in branded generics in India and robust growth in the US and other overseas markets boosted performance. However, reported profitability was impacted by one-off items, leading to a 22.7 percent decline in net profit after exceptional items to Rs 236.5 crore in the quarter.

The exceptional charges of about Rs 135 crore included a Rs 60 crore liability related to employee benefits following changes under labour codes and a Rs 74.7 crore impairment of real estate investments. On the other hand, growth was supported by double-digit revenue expansion, with total sales rising 14.6 percent year-on-year to Rs 3603.3 crore.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The domestic business grew 8.8 percent to Rs 2324.5 crore, while the international business rose 25.4 percent to Rs 1222 crore, led by strong momentum in the US and non-US markets. Continued new product launches and volume expansion in the US business were key contributors, alongside sustained outperformance in key therapies in India.

Operating performance also improved, with EBITDA rising 32.2 percent to Rs 517.4 crore and EBITDA margins expanding to 14.4 percent in Q4FY26 from 12.4 percent last year, aided by a better product mix, scale benefits and cost discipline.

For the full financial year, the company delivered similar trends, with revenue rising 13.5 percent to Rs 14,712.3 crore and EBITDA growing 19.6 percent, supported by healthy performance across geographies. EBITDA margin rose 100 basis points to 20.4 percent. Net profit for FY26 rose 6.3 percent to Rs 2301.8 crore despite exceptional expenses during the year.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The company's CEO, Vikas Gupta, reflected on the performance, highlighting the broad-based top-line growth, improving business mix, operating leverage and continued cost discipline. Alkem also maintained focus on pipeline development, filing five ANDAs and receiving four approvals in the US during the quarter, strengthening its future growth visibility.

Looking ahead, management remains optimistic. "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," Gupta said.