Alkem Laboratories vs Schaeffler India 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.

Schaeffler India delivered a stellar Q4 CY25 with revenue of ₹2,643 crore (+26.9% YoY) and EBITDA of ₹505.6 crore (+19.1% YoY), driven by strong volume growth across automotive (42% YoY in AT), industrial, and aftermarket segments. The company benefited from robust end-market demand, GST 2.0 reforms, and new business wins in hybrid and e-mobility. PAT came in at ₹328 crore with EBITDA margin of 19.1%. Management guided for sustained double-digit growth in CY26, with capex stepping up to over ₹500 crore to support capacity expansion (current utilization >85%). Key risk: export growth may moderate to 5-10% in CY26 due to slower European demand.

Guidance read

Capex to exceed ₹500 crore in CY26: Management plans to step up capex to over ₹500 crore in 2026, returning to average levels of 2022-2024, to support capacity expansion and new technologies. Export growth to moderate to 5-10% in CY26: Export order book for 2026 is in line with 2025, but growth is expected to moderate to 5-10% due to economic conditions in Europe and Asia Pacific. Sustained double-digit revenue growth in CY26: Management reiterated commitment to double-digit growth in the medium term, supported by strong pipeline and market demand.

Risk read

Key risks include Export growth moderation — Management guided export growth to slow to 5-10% in CY26 from 30-35% in CY25, due to weaker European and Asia Pacific demand.; Competitive intensity in industrial bearings — Analyst raised concern about a competitor's new SRB plant; management acknowledged competition but emphasized localization strategy.; KRSV subsidiary losses — KRSV's losses widened to 18.3% margin in Q4; management expects improvement in CY26 through channel and product mix optimization..

Promise ledger

Scorecard data is being built as historical quarters are processed.