Alkem Laboratories Management Guidance Tracker

Management reiterated EBITDA margin guidance of 19-20% for FY26, despite strong Q1, citing potential H2 opex from CDMO and medtech ramp-up.

Despite H2 opex from US CDMO (~₹50-60 cr/quarter) and GST impact (~₹50-60 cr), management expects EBITDA margin of 19.5-20% for FY26.

Occlutech's EBITDA margin is expected to improve from current ~4% to 25% in 3-5 years, driven by operating leverage and product mix.

R&D expenses will be 4.5-5% of revenue for the full year, with higher spending in H2 due to filing cycles.

R&D expenses were 3.3% in H1; management expects full-year R&D to be within 4-5% due to phasing of filings in Q4.

Medtech business expected to break even in FY28; FY26 and FY27 will see losses of ₹40-50 crore each.

Management expects India growth to continue at double-digit, outperforming the IPM by 100-150 bps in H2 and FY27.

Management expects domestic business to continue growing 100-150 bps above IPM growth, with FY26 ending at ~10% growth.

Denosumab US launch expected by end of FY26, pending FDA inspection and litigation resolution.

Capital expenditure for FY26 is guided at ₹750 crore, primarily for CDMO and biotech facilities.

The US CDMO plant, operational from September, is expected to achieve an annual run-rate of ₹300 crore within 12-18 months.

Occlutech is expected to grow at 14% CAGR over the next 5 years, reaching ~₹780 crore, excluding new products.