Alkem Laboratories vs Avanti Feeds Q3 FY26

AL

Alkem Laboratories

Q3 FY26 · Other

Alkem delivered a stable Q3 with total revenue of ₹3,737 crore (+10.7% YoY) and EBITDA margin of 22.2%. Domestic business grew 5.5% reported but ~10% on a normalized basis, driven by strong chronic portfolio and market share gains across six therapies. International sales surged 26.6% YoY to ₹1,216 crore. The highlight was the announcement of a 55% stake acquisition in Occlutech, a structural heart medtech company, for ~₹1,100 crore, with plans to scale revenue to ₹1,000 crore in 3-5 years and improve EBITDA margins from 4% to 25%. Management reiterated full-year guidance and bullish outlook. Key risk: MIP on penicillin derivatives could impact gross margins by 50-100 bps, though inventory and pricing actions may mitigate.

Guidance read

Domestic business to grow 100-150 bps above IPM: Management expects domestic business to continue growing 100-150 bps above IPM growth, with FY26 ending at ~10% growth. Occlutech EBITDA margin to reach 25% in 3-5 years: Occlutech's EBITDA margin is expected to improve from current ~4% to 25% in 3-5 years, driven by operating leverage and product mix. Occlutech revenue CAGR of 14% over 5 years: Occlutech is expected to grow at 14% CAGR over the next 5 years, reaching ~₹780 crore, excluding new products. Denosumab US entry by end of FY26: Denosumab US launch expected by end of FY26, pending FDA inspection and litigation resolution.

Risk read

Key risks include MIP on penicillin derivatives impacting gross margins — The government's MIP on penicillin derivatives could impact gross margins by 50-100 bps, though management expects to mitigate via pricing actions in trade generic business.; Occlutech integration and execution risk — Occlutech operates in a different segment (medtech) with complex regulatory and manufacturing requirements; integration and scaling may face challenges.; Denosumab litigation delay — US entry for denosumab is subject to ongoing litigation with Amgen, which could delay launch beyond FY26.; Trade generic business headwinds — Trade generic business has been flat to low single-digit growth due to competitive pressures and conscious margin protection, potentially dragging overall domestic growth..

Promise ledger

Scorecard data is being built as historical quarters are processed.

AV

Avanti Feeds

Q3 FY26 · Other

Avanti Feeds reported Q3 FY26 consolidated gross income of ₹1,447 crore, up 3% YoY but down 13% sequentially, reflecting seasonal feed volume decline. PBT grew 21% YoY to ₹222 crore, aided by lower raw material costs in feed and improved realizations in processing. Feed division PBT margin was 16% for 9M FY26, but management expects full-year PBT margin to moderate to 14.5-15% due to rising fish meal and soybean meal prices. Processing division saw 39% YoY revenue growth, driven by higher volumes and better realizations. The US tariff situation has improved with the removal of IEEPA-based duties, though a 10% import surcharge remains. Pet care sales reached ₹1.36 crore in Q3, with a manufacturing facility under development. Guidance for FY27 is preliminary, with expectations of 10%+ feed volume growth. Key risk: sustained raw material inflation could compress margins in Q4.

Guidance read

FY26 feed sales target of ~5,55,000 MT: Management expects full-year feed sales volume to reach around 5,55,000 MT, implying strong Q4 volumes. FY26 PBT margin guidance of 14.5-15%: Full-year PBT margin expected to be 14.5-15% for the feed division, down from 16% in 9M due to raw material cost pressures. FY26 processing export target of ~16,500 MT: Shrimp processing exports are estimated at 16,500 MT for FY26, up from 14,149 MT in FY25. Feed volume growth of at least 10% in FY27: Management expects minimum 10% growth in feed sales volume in FY27, driven by positive farmer sentiment and expanded culture area.

Risk read

Key risks include Rising raw material prices — Fish meal and soybean meal prices have increased sharply, with fish meal at ₹145/kg currently, which could compress feed margins in Q4.; US tariff uncertainty — Although IEEPA tariffs were removed, a new 10% import surcharge under Section 122 has been imposed, with potential increase to 15%, creating ongoing uncertainty for exports.; Pet care project execution delay — The pet food manufacturing facility is still in design and approval stage; management could not provide a clear timeline for commissioning, indicating potential delays.; Competition from e-commerce private labels — Amazon has launched its own pet food brand, which could pose a threat to Avanti's online sales channel, though management downplayed the risk..

Promise ledger

Scorecard data is being built as historical quarters are processed.