Alkem Laboratories Limited Earnings Summary — Q4 FY2026
Alkem Laboratories Reports Robust YoY Revenue Growth Amidst Margin Softness in Q4
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 3.8% sequentially in Q1 FY2027.
- Revenue of ₹3,740 Cr is 10.9% higher year-on-year.
- Revenue has compounded at 11.4% annualised over the last 10 quarters.
- Net profit of ₹520 Cr is 21.7% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 28.9% annualised across the period.
- Operating margin stands at 20.5% in Q1 FY2027.
- Operating margin compressed by 144 bps year-on-year.
- Over the last two years operating margin has expanded by 40 bps.
- PBT margin is 20.6%.
- Expenses grew 13.0% against revenue growth of 10.9%.
- Operating profit of ₹766 Cr is 3.7% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 65/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,740 | 3,603 | 3,737 | 4,001 | 3,371 | 3,144 | 3,374 | 3,415 | 3,032 | 2,936 |
| Expenses | Stable | 2,974 | 3,086 | 2,909 | 3,080 | 2,632 | 2,752 | 2,615 | 2,662 | 2,423 | 2,534 |
| Operating Profit | Improving | 766 | 517 | 828 | 921 | 739 | 391 | 759 | 753 | 609 | 402 |
| Operating Margin | Improving | 20.5% | 14.4% | 22.2% | 23.0% | 21.9% | 12.4% | 22.5% | 22.1% | 20.1% | 13.7% |
| Other Income | Volatile | 153 | 65 | 90 | 104 | 149 | 146 | 93 | 134 | 120 | 76 |
| Interest | Improving | 47 | 54 | 42 | 35 | 30 | 28 | 36 | 28 | 29 | 27 |
| Depreciation | Stable | 100 | 106 | 95 | 94 | 88 | 112 | 85 | 79 | 80 | 83 |
| Profit Before Tax | Volatile | 772 | 423 | 781 | 896 | 771 | 396 | 731 | 780 | 619 | 367 |
| Tax | Strong Uptrend | 251 | 171 | 128 | 116 | 103 | 73 | 90 | 78 | 69 | 63 |
| Net Profit | Volatile | 520 | 236 | 636 | 765 | 664 | 306 | 626 | 689 | 545 | 294 |
| Net Margin | Volatile | 13.9% | 6.6% | 17.0% | 19.1% | 19.7% | 9.7% | 18.6% | 20.2% | 18.0% | 10.0% |
Key Takeaways
- Revenue for Q4 FY2026 grew by 14.6% YoY to reaching 3,603 Cr, though it remains slightly lower than the Q3 peak.
- The tax rate spiked to 40% in the latest quarter, significantly impacting the bottom line compared to the previous quarters.
- Operating Profit Margin (OPM) moderated to 14% from 22% in the preceding quarter, indicating high expense volatility.
- Alkem maintains its 5th position in the Indian pharmaceutical market with a focus on high-growth chronic segments.
- Inventory levels have risen significantly, with inventory on the balance sheet reaching 4,012 Cr by end of FY26.
- Interest costs have doubled YoY in the quarterly comparison, reflecting the increased borrowing profile and higher interest environment.
- Despite quarterly volatility, the company delivered full-year RoE of 18%, maintaining its status as a high-quality compounder.
Management Guidance
Management is focused on a strategic pivot toward chronic segments like neurology and cardiology to protect margins from US generic price erosion.
Sentiment Shift
Stable
While YoY revenue growth is healthy, the sharp sequential decline in profit and spike in tax rates counterbalance the top-line performance.
Outlook
The company expects to leverage its large field force and leadership in anti-infectives while navigating pricing headwinds in the US generic markets and volatility in raw material costs.
From the Annual Report (Key Quotes)
“Alkem is a dominant pharmaceutical player in India, holding the #5 rank domestically with a 4.1% market share.”
“Strategic pivot from traditional acute therapies to high-growth chronic segments like neurology and cardiology is visible in the margin profile.”
“Leadership successfully navigated the price erosion challenges in the US market by doubling down on the domestic chronic segment.”
Official Quarterly Documents
This summary is AI-generated from Alkem Laboratories Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.