Alkem Laboratories Limited — Q1 FY26
Alkem Laboratories reported a strong Q1 FY26 with revenue of ₹3,371 crore (+11.2% YoY) and EBITDA of ₹739 crore (+21.4% YoY), driven by robust domestic growth (12% YoY) and impr...
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.
55%Questions answered4Evaded / deflected11Questions auditedContradictedNumbers vs filing
Evasive
High priority
Will you revise FY26 guidance after strong Q1?
Asked by Kunal Dhamesha, Macquarie
Management acknowledged the question but refused to revise guidance, citing it's too early.
deferred to later quartersno commitment
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Question
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 expense lumpy or a trend?
Asked by Kunal Dhamesha, Macquarie
Management clearly explained it's 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
Was there any FOREX gain offsetting expenses?
Asked by Kunal Dhamesha, Macquarie
Management confirmed FOREX gain and where it was reported.
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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 gave 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 the requested split and pointed to IQVIA data instead.
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 margin that we should, 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. It was 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 to the [audio distortion].
Vikas Gupta, CEO
Let's say when you have to break even in FY 2028. For the full year of FY 2026, there can be an estimate, say, the plot is around INR 40-50 krore. For FY 2026, FY 2027, there may be losses of INR 40-60 krore.
Evasive
High priority
Why not raise margin guidance despite strong Q1?
Asked by Neha Manpuria, Bank of America
Management cited need for more quarters before revising guidance.
deferred to next quarterno commitment
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Question
is there any other reason which keeps us, you know, is sort of stopping us from increasing the margin guidance versus, you know, flattish margins?
Vikas Gupta, CEO
We are waiting for, you know, let's let Q2 also, you know, get over. We will have more clarity on, you know, if there are any headwinds... we are staying put with the margin guidance that we have given.
Answered
Medium priority
What is the higher R&D budget for and on what?
Asked by Chirag, DSP Mutual Fund
Management explained the reasons for higher R&D and reaffirmed percentage guidance.
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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, you know, R&D spend. Is there something higher that you're budgeting for and what are they on account of?
Vikas Gupta, CEO
We are also focusing on growing our non U.S. business. There are a lot of filings that we are doing in the non U.S. markets as well. ... on an overall absolute basis, the cost may be looking higher, but if you look at percentage wise, it will be still within 4.5% - 5% for overall driven.
Partial answer
High priority
What is driving US growth and is it sustainable?
Asked by Rashmi, Dolat Capital
Management gave qualitative drivers but did not quantify new launch impact or commit to higher growth.
no specific new launch 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, or you still maintain your missing digits U.S. growth [for full year]?
Vikas Gupta, CEO
We have launched with everyone else. ... our guidance was about mid single digit kind of growth from U.S. markets. I will maintain at least that growth. Looking at the trends, if everything remains favorable, we may even surpass that.
Evasive
Medium priority
Can you split India growth into NLEM and non-NLEM?
Asked by Gagan Thareja, ASK Investment Managers
Management declined to provide the requested segment split.
refused to provide breakupreferred to external data
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Question
if one split your risk in NLEM and non-NLEM, given that WPI price increase in NLEM was around 1.8%, is it a reasonable inference that the non-NLEM piece could have grown by 15% +?
Vikas Gupta, CEO
I do not have the data handy. You can check it from the IQVIA data, but we have never given product level or segment specific.
Partial answer
Medium priority
What were Europe revenues and profits in Q1?
Asked by Gagan Thareja, ASK Investment Managers
Management gave revenue but not profit; EBITDA reference was unclear.
provided revenue but not profitunclear EBITDA figure
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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, and EBITDA, I think, the five quarters back, we including both.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Medtech Q1 revenue INR 2.5 crore | ₹2.5 cr | ₹3,371.1 cr | Understated vs filing |
| Medtech FY26 revenue target INR 20 crore | ₹20 cr | ₹3,371.1 cr | Understated vs filing |
| Medtech ARR exit run rate INR 40-50 crore | ₹45 cr | ₹3,371.1 cr | Understated vs filing |
| Gross margin guidance 64% | 64% | 21.9% | Overstated vs filing |
| Europe revenue including CDMO INR 90 crore | ₹90 cr | ₹3,371.1 cr | Understated vs filing |
| Hydroid contributed INR 15 crore in Q1 | ₹15 cr | ₹3,371.1 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.