Alkem Laboratories reported strong Q2 FY26 results with revenue reaching INR40,010 million, a 17.2% Y-o-Y increase. India sales grew by 12.4%, U.S. sales by 28%, and non-U.S. sales by 32.4%. EBITDA increased by 22.3% to INR9,208 million, with a margin of 23%. The company anticipates continued growth, aiming to outperform the market by 100-150 basis points. Focus remains on key markets and new product launches.
Financial Performance Overview
Alkem Laboratories showcased robust financial results for Q2 FY26, with total revenue from operations reaching INR40,010 million, reflecting a 17.2% year-over-year growth. Key highlights include:
- India Sales: INR27,660 million with a 12.4% Y-o-Y growth.
- U.S. Sales: INR7,649 million, a 28% increase Y-o-Y.
- Non-U.S. Sales: INR4,241 million, demonstrating substantial growth of 32.4% Y-o-Y.
- EBITDA: Grew by 22.3% Y-o-Y to INR9,208 million, resulting in a margin of 23%.
- Net Profit: INR7,651 million, up by 11.1% Y-o-Y.
- R&D Expenses: INR1,302 million, which is 3.3% of total revenue.
India Business Performance
Alkem outperformed the Indian market (IPM) in several key therapies, securing the number one position in the Acute segment. Specific therapy growth includes:
- Anti-infectives: Grew by 1.2x.
- Gastrointestinal (GI): Increased by 3.1x.
- Vitamins, Minerals, and Nutrients (VMN): Rose by 2.5x.
- Pain Management: Up by 2.3x.
- Respiratory: Grew by 1.5x.
- Dermatology: Increased significantly by 3.1x.
In the anti-diabetes segment, excluding GLP-1 launches, Alkem’s growth was 2x faster than the market.
Guidance and Future Outlook
Alkem anticipates maintaining strong growth, expecting to outperform the market by 100 to 150 basis points. While new business investments will lead to increased operational expenditure (INR100 crores in H2), the company is hopeful to exceed earlier EBITDA guidance, targeting between 19.5% to 20%.
Enzene and CDMO Update
The Enzene CDMO U.S. facility commenced operations in September. Revenue from this facility is projected to be approximately INR20 crores per quarter, with operating expenses around INR50 crores per quarter. Alkem aims to achieve approximately INR300 crores in revenue within the next 12 to 18 months from current production capacity.
Source: BSE
