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) an...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered3Evaded / deflected11Questions auditedContradictedNumbers vs filing
Evasive
High priority
Will FY26 guidance be revised given strong Q1?
Asked by Kunal Dhamesha, Macquarie
Management acknowledged the strong start but refused to revise guidance, citing it's too early.
deferred to later quartersno commitment
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Question
With the aggress in terms of revenue growth and margins, would you like to provide update our FY 2026 tight end?
Vikas Gupta, CEO
I find it a little too early to revise the guidance approach. I can clearly tell you, if the year progresses the way we are seeing for some more time then definitely we would overachieve on the guidance that we have given.
Answered
Medium priority
Is the lower R&D spend in Q1 due to lumpiness?
Asked by Kunal Dhamesha, Macquarie
Management clearly explained the phasing and reaffirmed annual guidance.
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Question
We had cited for our R&D expenses to be around I think 5% of the revenue versus that year than 3.5%. Is it more lumpy lumpiness of the expenses or?
Vikas Gupta, CEO
It's more about phasing of the expenses. Our overall annual guidance has been within the range of 4.5%-5% and I stay put with that.
Answered
Low priority
Were there any FOREX gains offsetting expenses?
Asked by Kunal Dhamesha, Macquarie
Management confirmed FOREX gain and explained reporting treatment.
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Question
Is there any FOREX gain which has been offset further expenses in this quarter?
Vikas Gupta, CEO
At overall level there was FOREX gain so we reported under other income. In this quarter there was FOREX gain at the consolidated level.
Answered
Medium priority
What is the medtech business contribution to India revenue?
Asked by Amlan Jyoti Das, Nomura
Management provided specific revenue figure and outlook.
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Question
What is the contribution from the new medtech businesses and your revenue for this quarter.
Vikas Gupta, CEO
Our first quarter revenue is around INR 2.5 crore, which is very minimal. We are pretty confident with the way we started that business.
Evasive
Medium priority
What is the growth split between branded and generic in India?
Asked by Sidharth Negandhi, CWC
Management declined to give a specific split, citing historical practice.
refused to provide breakupreferred to external data
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Question
Wanted to understand on the India business what does the growth in the branded formulation business versus generic business.
Vikas Gupta, CEO
We've never given these kind of breakups earlier. If you look at IQVIA data, we are all co-founding in our branded generic business. If that is any reflection of our growth, then IQVIA is reflecting a 9.7% growth.
Answered
High priority
What drove gross margin improvement and sustainable level?
Asked by Neha Manpuria, Bank of America
Management explained drivers and reiterated gross margin guidance.
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Question
What drove this gross margin improvement? ... what should be the gross margin that we should look at for the full year?
Vikas Gupta, CEO
There was a positive impact on account of lower API prices, around 3.8%-3.9%, and the mix has improved because our domestic contribution is higher. We have given a guidance of around 64%.
Answered
High priority
When will medtech business break even and what are costs?
Asked by Neha Manpuria, Bank of America
Management provided break-even timeline and loss estimates.
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Question
What is the roughly you the cost associated with this business? I just want to understand at what point does the medtech business possibly start contributing.
Vikas Gupta, CEO
Let's say when you have to break even in FY 2028. For FY 2026, FY 2027, there may be losses of INR 40-60 crore.
Evasive
High priority
Why not raise margin guidance despite strong Q1?
Asked by Neha Manpuria, Bank of America
Management cited lack of visibility and deferred any revision.
deferred to next quarterno commitment
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Question
Is there any other reason which keeps us from increasing the margin guidance versus flattish margins?
Vikas Gupta, CEO
We are waiting for Q2 also to get over. We do not have that visibility and that's why we are staying put with the margin guidance that we have given.
Answered
Medium priority
Is R&D budget higher than historical levels?
Asked by Chirag, DSP Mutual Fund
Management confirmed R&D spend as percentage of sales remains within guided range.
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Question
This higher R&D that you're talking about, this is, I mean, typically last five, six years you've on average done INR 500, 550 odd crore kind of R&D spend. Is there something higher that you're budgeting for?
Vikas Gupta, CEO
If you look at percentage wise, it will be still within 4.5%-5% for overall driven.
Partial answer
Medium priority
How to reduce seasonality and grow chronic segment?
Asked by Chirag, DSP Mutual Fund
Management acknowledged the question but gave no concrete strategy beyond being open to M&A.
no specific planvague on acquisitions
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Question
Given the large business which we have, fairly seasonal, how do we solve for the business? ... just give us wide space in chronic segment.
Vikas Gupta, CEO
I don't think seasonality bothers me more. The bigger opportunities are on the chronic side. We are pretty open to look at any acquisition target, more from electronic space.
Partial answer
High priority
What is driving US growth and is it sustainable?
Asked by Rashmi, Dolat Capital
Management gave broad guidance but avoided specifics on new launches or sustainability.
no specific product detailscautious on sustainability
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Question
What is really driving this, and have you launched in the U.S.? Will this be the new date now in the subsequent quarters also?
Vikas Gupta, CEO
We have launched with everyone else. Overall, I think our guidance was about mid single digit kind of growth from U.S. markets. I will maintain at least that growth.
Partial answer
Medium priority
What was Europe revenue and profit in Q1?
Asked by Gagan Thareja, ASK Investment Managers
Management provided revenue but not profit, and said they would get back on prior year comparison.
no profit figure givenreferred to revenue only
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Question
Is it possible to give some idea of how the engine revenues at, you know, profits would have worked for the first quarter in Europe?
Vikas Gupta, CEO
In the first quarter, total investment was around INR 90 crores. This is including CDMO business in Europe.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Medtech Q1 revenue INR 2.5 crore | ₹2.5 cr | ₹3,371 cr | Understated vs filing |
| Medtech FY26 revenue target INR 20 crore | ₹20 cr | ₹3,371 cr | Understated vs filing |
| Medtech ARR exit run rate INR 40-50 crore | ₹45 cr | ₹3,371 cr | Understated vs filing |
| Gross margin guidance 64% | 64% | 22% | Overstated vs filing |
| Europe revenue INR 90 crore in Q1 | ₹90 cr | ₹3,371 cr | Understated vs filing |
| CDMO facility revenue INR 50 crore per quarter | ₹50 cr | ₹3,371 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.