Alkem Laboratories Limited — Q2 FY26
Alkem delivered a strong Q2 FY26 with revenue of INR 4,001 crore (+17.2% YoY), EBITDA of INR 921 crore (+22.3% YoY), and PAT of INR 765 crore (+11.1% YoY).
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.
83%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Can Alkem maintain India growth momentum in H2 and FY27?
Asked by Neha, Bank of Arora
Management gave specific outperformance target and market growth assumption.
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Question
As we look into the second half and probably FY 2027, do we think Alkem can maintain this growth momentum that we have seen?
Vikas Gupta, CEO
We will continue to outperform the market at least by 100-150 basis points. We gave an overall guidance of a double-digit kind of growth, assuming the market grows at around 8-8.5%.
Answered
High priority
Is there upside risk to margin guidance given H1 performance?
Asked by Neha, Bank of Arora
Management provided a specific EBITDA margin range for the full year.
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Question
I think we're guided to flat margins given how the first half has been. Do you think there's an upside risk to that guidance?
Vikas Gupta, CEO
From the EBITDA guidance perspective, I see somewhere between 19.5%-20% should be our EBITDA for the full year.
Answered
Medium priority
What were MedTech and Adroit sales and spend in Q2?
Asked by Damayanti, HSBC
Management provided specific revenue and expense figures for both businesses.
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Question
First, can you update us on the sales which came from MedTech and Adroit business in Q2? Then what kind of spend are currently ongoing for these new businesses?
Vikas Gupta, CEO
MedTech, we have done almost 900 knee replacements. Revenue will be hardly INR 2.5 crore. Adroit run rate of around INR 15 crore for the quarter. MedTech OpEx was around INR 8-9 crore.
Partial answer
Medium priority
What is the ramp-up timeline for US CDMO plant to break even?
Asked by Damayanti, HSBC
Management gave cost and revenue numbers but did not specify when break-even would occur.
no break-even timeline given
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Question
What kind of ramp-up timeline are you looking for this business to achieve cost break-even?
Vikas Gupta, CEO
We expect OpEx to be around INR 50 crore per quarter and revenue to be around INR 20 crore per quarter because we have just started the plant.
Evasive
Medium priority
Impact of potential MIP on penicillin G?
Asked by Bansi Desai, JPMorgan
Management refused to engage on a hypothetical scenario.
dismissed as speculativeno substantive comment
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Question
We hear that the government is reportedly considering imposing MIP on penicillin G. We would love to hear your thoughts, any impact that it could have on us.
Vikas Gupta, CEO
This is speculative. Any hypothesis that I build on any speculation will not hold true. We are waiting for some notification to come.
Answered
Medium priority
What drove the sharp sequential increase in other expenses?
Asked by Bansi Desai, JPMorgan
Management provided a clear reason for the increase.
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Question
If we look at the other expenses, they have sharply increased sequentially by almost INR 2.00 billion. What has driven that?
Vikas Gupta, CEO
Mainly on account of our marketing expenses. Generally, in quarter two, the marketing expenses are highest if you compare to other quarters.
Answered
Medium priority
Why are other expenses up YoY and sequentially despite US costs not yet hitting?
Asked by Bharat, Aquirius Securities Private Limited
Management explained the drivers of the increase.
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Question
While you mentioned that US-related expenses will be kicking in from current fourth quarter, why are we seeing these expenses sequentially as well as Year-on-Year in second quarter?
Vikas Gupta, CEO
One reason is the marketing expense. Also, we have now two new subsidiaries, Bombay Auto and Adroit, which has also resulted in higher other expenses.
Answered
High priority
What is the annual run rate target for US CDMO plant?
Asked by Bharat, Aquirius Securities Private Limited
Management gave a specific revenue target and timeline.
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Question
What sort of run rate or annual target will you have for the next six weeks for U.S. engine plant?
Vikas Gupta, CEO
We've always maintained an asset turnover of around one from the U.S. plant. It will take us 12-18 months to fully get there. At an annual run rate of INR 300 crore.
Answered
High priority
How is Alkem positioned for GLP-1 in India and other markets?
Asked by Bharat, Aquirius Securities Private Limited
Management provided specific regulatory progress and market positioning.
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Question
Any comments on GLP-1, how we are positioned for GLP-1 for India as well as for other markets?
Vikas Gupta, CEO
Our CT for diabetes indication is already completed. We are waiting for the MA to be received. We should be on track and amongst the first players in India when the patent expires.
Answered
High priority
How should we see margins from FY27 onwards?
Asked by Harshit Dutt, Diamond Asia Capital
Management gave a clear margin expansion target.
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Question
How should we see the margins from the medium perspective from FY 2027 onwards?
Vikas Gupta, CEO
Year-on-Year, we should look at at least a 1% improvement in our overall margins. I think we are pretty much on track for that.
Answered
Medium priority
What was constant currency growth in XUS markets?
Asked by Madhav, FIL
Management provided the currency impact, allowing calculation of constant currency growth.
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Question
Could you give us a sense around the constant currency growth versus how much was from the constant currency growth in the XUS markets for this quarter?
Vikas Gupta, CEO
We have had a currency gain of close to 4.5%. In the range of 4-4.5%.
Partial answer
Medium priority
Details on four US launches in Q2?
Asked by Karthik, Bajaj Allianz
Management only discussed one launch and did not provide market size or competition details.
no market size givenonly one launch detailed
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Question
My question is about the four launches that we have done in the last quarter in the U.S. If you can elaborate what kind of launches are these and what is the market size?
Vikas Gupta, CEO
The most meaningful launch has been Sacubitril/Valsartan. That has contributed to the growth in the US market. It is a highly competitive market.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin guidance 19.5%-20% for full year | 19.75% | 23% | Understated vs filing |
| MedTech revenue INR 2.5 crore in Q2 | ₹2.5 cr | ₹4,001 cr | Understated vs filing |
| Adroit revenue INR 15 crore per quarter | ₹15 cr | ₹4,001 cr | Understated vs filing |
| MedTech EBITDA loss INR 5.5 crore in Q2 | ₹-5.5 cr | ₹920.8 cr | Understated vs filing |
| US CDMO revenue INR 40-45 crore in Q2 | ₹42.5 cr | ₹4,001 cr | Understated vs filing |
| US CDMO revenue guidance INR 20 crore per quarter in H2 | ₹20 cr | ₹4,001 cr | Understated vs filing |
| US CDMO annual run rate target INR 300 crore in 12-18 months | ₹300 cr | ₹4,001 cr | Understated vs filing |
| Pune operations revenue INR 120 crore in Q2 | ₹120 cr | ₹4,001 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.