Alkem Laboratories announced its Q1 FY27 results, reporting a consolidated revenue of ₹3,740 crores, marking an 11% year-on-year growth. India sales contributed ₹2,497 crores, up 10.3%. International sales also saw a strong performance, growing 16% to ₹1,222 crores. The company highlighted market outperformance in various therapies and provided updates on its U.S. CDMO business and product pipeline.
Alkem Laboratories Reports Strong Q1 FY27 Performance
Alkem Laboratories Limited has announced its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), reporting a consolidated revenue from operations of INR3,740 crores. This represents a growth of close to 11% year-on-year. The company’s domestic market, India, contributed significantly with sales of INR2,497 crores, achieving a year-on-year growth of 10.3%.
International Sales and EBITDA
International sales demonstrated robust growth, reaching INR1,222 crores with a year-on-year increase of 16%. The company’s EBITDA margin stood at 20.5%. While profit before tax saw a marginal technical growth of 1.8%, net profit experienced a degrowth of 21.7%, attributed primarily to taxation reasons.
Market Performance and Key Therapies
According to IQVIA data, Alkem Laboratories registered a growth of 13.2% year-on-year, outperforming the Indian pharmaceutical market’s growth of 12.2%. The acute segment grew by 12.3% against the IPM’s 10.1%, a 220 basis point outperformance. The chronic segment reported an even stronger growth of 17.9% versus the IPM’s 15.4%, a 250 basis point outperformance. The company outperformed the IPM in seven key focus therapies, including Anti-infectives, Gastro, Vitamin and Minerals, Pain, Antidiabetic, Respiratory, and Derma, with growth rates ranging from 1.1x to 1.8x market growth.
U.S. Market and Regulatory Updates
In the U.S. market, Alkem received approval for 5 ANDAs during the quarter, with one being a tentative approval. The company also noted that its Daman facility has received an OAI status, and comprehensive corrective actions have been initiated to address observations, ensuring continued supply to the U.S. market without interruption.
Financial Highlights and Outlook
India sales for the quarter stood at INR2,497 crores with a growth of 10.3%, while branded generics growth was reported at 12%. The company addressed rising costs, including employee costs and expenses related to new initiatives like CDMO and MedTech. For the U.S. CDMO business, an operational expense of approximately INR60 crores was incurred, with a target to break even within 4-5 quarters. The company anticipates USD 25-30 million in annualized revenue from its U.S. CDMO business to achieve break-even.
Regarding future outlook, Alkem expects the U.S. business to grow in high single digits, supported by currency. The Trade Generic business is expected to recover, with an aim to achieve double-digit growth in the coming quarters. For the full year, the company anticipates India business growth to be around 12%. The gross margin is maintained at 66.5% to 67% for the remainder of the year, despite potential impacts from API price increases.
Sandeep Singh, Managing Director, stated, “The period under review has been one of continued execution of our strategy. While the operating environment remains dynamic, we have stayed focused on the fundamentals, strengthening our core business, improving operational efficiency and investing selectively in areas that can support a sustainable and profitable growth.”
Source: BSE
