Domestic Business YTD Growth
10%
+10pp YoY
Domestic business grew ~10% YTD, with core branded generic growing 11-12%, outperforming IPM.
ALKEMLABORATORIES
Other
13 Feb 2026
Alkem Laboratories Ltd — Q3 FY26
Alkem delivered a stable Q3 with total revenue of ₹3,737 crore (+10.7% YoY) and EBITDA margin of 22.2%.
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
International Sales Growth
26.6%
+26.6pp YoY
International sales grew 26.6% YoY to ₹1,216 crore, driven by strong performance in US and other markets.
Occlutech Revenue Target (CY26)
₹600 crore
N/A
Occlutech expected to generate ~₹600 crore revenue in CY26, growing at 14% CAGR over 5 years.
Occlutech Gross Margin
73%
N/A
Occlutech's gross margin is ~73%, with potential for expansion via product mix and operating leverage.
Management Guidance
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.
Management guidance growthOcclutech 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.
Management guidance marginsOcclutech 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.
Management guidance revenueDenosumab US entry by end of FY26
Denosumab US launch expected by end of FY26, pending FDA inspection and litigation resolution.
Management guidance growthKey Risks
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.
medium · analyst_questionOcclutech integration and execution risk
Occlutech operates in a different segment (medtech) with complex regulatory and manufacturing requirements; integration and scaling may face challenges.
medium · analyst_questionDenosumab litigation delay
US entry for denosumab is subject to ongoing litigation with Amgen, which could delay launch beyond FY26.
high · management_commentaryTrade 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.
low · data_observationNotable Quotes
I think after biotech this could be one very valuable subsidiary that we will create in the long term.
We are very clear about it. We will run it independently and it is different but it falls under healthcare.
We are already EBITDA positive in the present year and our estimate is to have 10% EBITDA by FY27 which will take us to around 23 to 24% in 3 years time.
Frequently Asked Questions
What was Alkem Laboratories's revenue in Q3 FY26?
Alkem Laboratories reported revenue of ₹3,737 Cr in Q3 FY26, representing a +10.7% change compared to the same quarter last year.
What guidance did Alkem Laboratories management give for FY27?
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.
What are the key risks for Alkem Laboratories in FY27?
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..
Did Alkem Laboratories meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Alkem Laboratories Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.