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Revenue
₹3,371.1 Cr
verified against source
Revenue YoY
11.2%
reported change
EBITDA
₹739.1 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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 improved gross margins from lower API costs and favorable mix. US business grew 8.8% YoY despite 3-4% price erosion, aided by supply chain recovery. Management maintained FY26 guidance (EBITDA margin ~19.5%) citing potential headwinds from R&D phasing (4.5-5% of sales) and new initiatives (CDMO, medtech) incurring ~₹50-60 crore quarterly opex in H2. Key risk: US tariff uncertainty could pressure margins if implemented.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated EBITDA margin guidance of 19-20% for FY26, despite strong Q1, citing potential H2 opex from CDMO and medtech ramp-up.
- R&D expenses will be 4.5-5% of revenue for the full year, with higher spending in H2 due to filing cycles.
- Medtech business expected to break even in FY28; FY26 and FY27 will see losses of ₹40-50 crore each.
- Capital expenditure for FY26 is guided at ₹750 crore, primarily for CDMO and biotech facilities.
Risks flagged
- Potential US tariffs on pharmaceutical imports could impact margins; management called it 'hypothetical' and declined to provide specific mitigation strategy.
- US business faces 3-4% YoY price erosion, which could offset volume gains and pressure margins.
- CDMO and medtech businesses will incur significant opex (₹50-60 crore per quarter) in H2 FY26, delaying margin expansion.
- Employee costs rose 15% YoY due to higher incentives; management expects lower growth in subsequent quarters, but volatility remains.
Key quotes
- We are strategically accelerating our focus on the non-US business segment by strengthening our presence in high potential non-US markets as well and capturing new opportunities that align with our long-term growth ambitions.
- 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 but at this stage I will stay with the guidance.
- Tariff is a very hypothetical question... we will deal with it as and when it comes.
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