Alkem Laboratories Limited — Q2 FY26
Alkem delivered a strong Q2 FY26 with revenue of ₹4,010 crore (+17.2% YoY), driven by robust growth across India (+12.4%), US (+28%), and non-US markets (+32.4%).
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 guidance and confirmed trend continuation.
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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. This growth is backed by strong launches plus our key brands doing pretty fast. I think this trend can continue even in H2.
Answered
High priority
Is there upside risk to flat margin guidance given H1?
Asked by Neha, Bank of Arora
Management provided a specific EBITDA margin range and confirmed it is an improvement.
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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. That is how vis-à-vis the earlier guidance of keeping it at 19.5%.
Answered
Medium priority
What were MedTech and Adroit sales and spend in Q2?
Asked by Damayanti, HSBC
Management provided specific revenue and expense numbers for both segments.
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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. In Adroit, we are maintaining our run rate of around INR 15 crore for the quarter. MedTech OpEx was around INR 8-9 crore. EBITDA loss of around INR 5.5 crore in MedTech. Adroit is at a break-even.
Partial answer
Medium priority
What is the ramp-up timeline for US CDMO to break even?
Asked by Damayanti, HSBC
Management gave revenue and cost 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? I understand you earlier mentioned this facility will incur a cost of around INR 50 crore per quarter, right?
Vikas Gupta, CEO
For Indian US operations, the current average is around INR 15-20 crore per quarter of revenue. We expect to close between INR 70-80 crore of revenue from Indian CDMO US business. The OpEx expense will be around INR 50 crore per quarter going forward.
Evasive
Medium priority
Impact of potential MIP on penicillin G?
Asked by Bansi Desai, JPMorgan
Management declined to provide any analysis, calling it speculative.
dismissed as speculativerefused to 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, Bansi, at this point in time. Any hypothesis that I build on any speculation will not hold true. We are waiting for some notification to come.
Answered
High priority
What drove the sharp sequential increase in other expenses?
Asked by Bansi Desai, JPMorgan
Management explained the increase with specific reasons.
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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. Also, there is a slight increase in R&D expenses quarter.
Answered
Medium priority
Why are other expenses up YoY and sequentially despite US costs not yet in?
Asked by Bharat, Aquirius Securities Private Limited
Management provided clear reasons for 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, as I said, is the marketing expense. Also, we have now two new subsidiaries, Bombay Auto and Adroit, which is currently in this quarter, it was part of the consolidated results. That 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.
Vikas Gupta, CEO
We've always maintained an asset turnover of around one from the U.S. plant. I think it will take us 12-18 months to fully get there. We will try and get to that number maybe 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 in case we are?
Vikas Gupta, CEO
Our CT for diabetes indication is already completed. We have got approval. We are waiting for the MA to be received. We should be on track and amongst the first players to be out there 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 specific margin improvement target.
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Question
How should we see the margins from the medium perspective from FY 2027 onwards?
Vikas Gupta, CEO
I've always maintained that 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 a specific currency gain percentage.
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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
Overall, I think we have had a currency gain of close to 4.5%. In the range of 4-4.5%.
Partial answer
Medium priority
What were the four US launches and their market size?
Asked by Karthik, Bajaj Allianz
Management highlighted one launch but did not provide market size or details on others.
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 or how much is the competition in these four launches?
Vikas Gupta, CEO
The most meaningful launch in the US has been Sacubitril/Valsartan that we have done in Q2. That has really done well for us. It is a highly competitive market. Balance launches are there, but not so significant that I need to call out the numbers.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin guidance of 19.5%-20% for FY26 | 19.75% | 23% | Understated vs filing |
| MedTech Q2 revenue INR 2.5 crore | ₹2.5 cr | ₹4,001 cr | Understated vs filing |
| Adroit Q2 revenue run rate INR 15 crore | ₹15 cr | ₹4,001 cr | Understated vs filing |
| MedTech Q2 EBITDA loss INR 5.5 crore | ₹-5.5 cr | ₹920.8 cr | Understated vs filing |
| US CDMO Q2 revenue INR 40-45 crore | ₹42.5 cr | ₹4,001 cr | Understated vs filing |
| US CDMO annual run rate target INR 300 crore | ₹300 cr | ₹4,001 cr | Understated vs filing |
| Pune operations Q2 revenue INR 120 crore | ₹120 cr | ₹4,001 cr | Understated vs filing |
| Pune operations H1 revenue INR 180-185 crore | ₹182.5 cr | ₹4,001 cr | Understated vs filing |
| US CDMO Q3-Q4 revenue INR 20 crore per quarter | ₹20 cr | ₹4,001 cr | Understated vs filing |
| US CDMO FY26 revenue guidance INR 70-80 crore | ₹75 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”.