Risks
4 risks
Risk Intelligence
U.S. tariff impact on pharma exports
View Risks →Alkem Laboratories Limited — Q1 FY26
Alkem Laboratories reported a strong Q1 FY26 with revenue of INR 3,371 crore (+11.2% YoY) and EBITDA of INR 739 crore (+21.4% YoY), driven by robust domestic growth (12% YoY) and improved gross margins from lower API costs and favorable mix.
bullish
high
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Alkem Laboratories reported a strong Q1 FY26 with revenue of INR 3,371 crore (+11.2% YoY) and EBITDA of INR 739 crore (+21.4% YoY), driven by robust domestic growth (12% YoY) and improved gross margins from lower API costs and favorable mix. The India business outperformed the IPM by 120 bps, with volume growth of 2.9%. Management maintained its FY26 margin guidance of ~19.5% despite the strong start, citing higher R&D spends (4.5-5% of sales) and OpEx from new initiatives (CDMO, medtech) in H2. The U.S. business grew mid-single digit, with pricing erosion of 3-4% offset by supply chain improvements. Key risks include potential U.S. tariffs and slower-than-expected ramp-up of new businesses.
अल्केम लैबोरेटरीज ने पहली तिमाही (अप्रैल-जून 2025) में अच्छा प्रदर्शन किया। कंपनी की कमाई 3,371 करोड़ रुपये रही, जो पिछले साल से 11.2% ज्यादा है। मुनाफा (EBITDA) 739 करोड़ रुपये रहा, जो 21.4% बढ़ा। इसकी वजह भारत में मजबूत बिक्री (12% बढ़ोतरी) और कच्चे माल की कम लागत से बेहतर मुनाफा है। भारत का कारोबार बाजार से 1.2% बेहतर रहा। कंपनी ने पूरे साल के लिए 19.5% मुनाफा मार्जिन का अनुमान बरकरार रखा है, लेकिन दूसरी छमाही में नई चीजों (जैसे दवा बनाने की नई तकनीक) पर ज्यादा खर्च होगा। अमेरिका में बिक्री धीमी रही, कीमतों में 3-4% गिरावट आई। आगे अमेरिकी टैरिफ और नए कारोबार की धीमी शुरुआत जोखिम हो सकते हैं।
Risks4 trackedTranscriptfull text
Research workspace
Focused Modules
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
India Business Growth (IQVIA)
9.7%
+120 bps vs IPM
India business grew 9.7% YoY, outperforming the IPM growth of 8.5% by 120 basis points.
Volume Growth
2.9%
+140 bps vs IPM
Overall volume growth of 2.9% outperformed the IPM volume growth of 1.5% by 140 bps.
R&D Spend as % of Revenue
3.5%
Within 4.5-5% annual guidance
R&D expenses were 3.5% of revenue in Q1, with annual guidance maintained at 4.5-5%.
Medtech Revenue (Q1)
INR 2.5 crore
New business
Medtech business started with Q1 revenue of INR 2.5 crore; management targets INR 20 crore for FY26.
What Changed vs Last Quarter
NEW
India business to grow 100-250 bps faster than IPM
Management expects India business to continue outperforming the IPM by 100-250 basis points, with IPM growth assumed at 8-9%.
NEW
U.S. business mid-to-high single digit growth expected
U.S. business is expected to grow mid-to-high single digit in FY26, subject to tariff and pricing trends.
UPDATED
FY26 EBITDA margin guidance of ~19.5% maintained
Management reiterated the 19-20% EBITDA margin guidance for FY26, despite strong Q1 performance, citing higher R&D and new business OpEx in H2.
UPDATED
CapEx of INR 750 crore for FY26
Capital expenditure for FY26 is guided at INR 750 crore, primarily for CDMO and biosimilar facilities.
DROPPED
US business mid-single-digit growth in FY26
US revenue is expected to grow at a mid-single-digit rate in FY26, driven by 5-6 new product launches and improved supply.
DROPPED
Domestic business to outperform IPM by 100 bps in FY26
India business is expected to grow at least 100 basis points above the IPM growth rate of 7-8%.
NEW RISK
U.S. tariff impact on pharma exports
Potential U.S. tariffs could affect pricing and margins; management acknowledged uncertainty and said they will evaluate strategies once tariffs are announced.
NEW RISK
Higher R&D and new business OpEx in H2
Management flagged that R&D spends (4.5-5% of sales) and OpEx from CDMO/medtech initiatives will weigh on H2 margins, potentially offsetting operational improvements.
NEW RISK
U.S. pricing erosion continues at 3-4%
U.S. business faces ongoing price erosion of 3-4% YoY, which could pressure margins if volume growth does not compensate.
NEW RISK
Medtech and CDMO businesses may take longer to break even
Medtech business expected to break even only by FY28, with losses of INR 40-60 crore in FY26-27; CDMO facility will start contributing meaningfully only from Q4.
RISK GONE
US pricing pressure and tariff uncertainty
Continued price erosion in the US generics market and potential tariffs could impact US business growth and margins.
RISK GONE
Operating losses from new ventures
CDMO and medtech businesses are expected to incur combined operating losses of INR 100-125 crore in FY26, weighing on profitability.
RISK GONE
Tax rate increase post FY26
Tax rate is expected to rise to 35-37% from FY27 as MAT credit is utilized, significantly impacting net profit.
RISK GONE
Acute business seasonality and NLEM headwinds
Domestic acute business remains vulnerable to seasonal fluctuations and price control under NLEM, which could limit growth.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q3 FY25
Q4 implied growth of ~9.5-10% driven by strong secondary optics and low base.
Mentioned in Q2 FY25, Q4 FY25
Management expects EBITDA margins to remain stable at around 19.5% in FY26, supported by operating leverage and despite higher R&D investments.
Mentioned in Q1 FY25, Q3 FY25
Despite 21.6% margin in 9M, Q4 is seasonally weak with higher R&D spend (5 filings), so full-year margin expected around 19%.
Mentioned in Q2 FY25, Q3 FY25
Price erosion in US generics is ~5% (2.5% on NRV basis) and expected to persist, pressuring US revenue growth.
Mentioned in Q1 FY25, Q4 FY25
US revenue is expected to grow at a mid-single-digit rate in FY26, driven by 5-6 new product launches and improved supply.
Fast read
Guidance and risk preview
Management reiterated the 19-20% EBITDA margin guidance for FY26, despite strong Q1 performance, citing higher R&D and new business OpEx in H2.
Potential U.S.
View Risks →